Issues To Consider From The McKinsey Enforcement Action
This prior post highlighted the Foreign Corrupt Practices Act enforcement action against McKinsey and Company Africa (Pty) Ltd (“MCKINSEY AFRICA”), a wholly owned and wholly controlled subsidiary of McKinsey & Company (an international consulting firm) concerning bribery schemes in South Africa.
This prior post highlighted how the matter was yet another FCPA enforcement action related to South Africa’s Broad-Based Black Economic Empowerment Program.
This post highlights additional issues to consider.
Timeline
Issues To Consider From The BIT Mining (500.com) Enforcement Action
This prior post highlighted the Foreign Corrupt Practices Act enforcement action against BIT Mining Ltd. (formerly known as 500.com) in connection with a failed Japan bribery scheme concerning efforts to obtain a license to operate a casino.
This post highlights additional issues to consider.
Japan
The enforcement action is believed to be the first in FCPA history concerning conduct in Japan.
Take away point. While certain countries have a higher bribery and corruption risk than others, bribery and corruption issues can arise in any country.
FCPA enforcement actions have involved conduct in approximately 90 countries including perceived low risk countries such Canada, United Kingdom, Netherlands, France and Germany.
Issues To Consider From The Telefónica Venezolana Enforcement Action
This prior post went in-depth into the recent FCPA enforcement action against Telefónica Venezolana (a subsidiary of Telefonica S.A.) concerning a bribery scheme in Venezuela.
This post highlights additional issues to consider.
Timeline
Beginning in early 2020, the annual report of Telefónica S.A. (a Spanish company with shares traded in the U.S.) contained the following disclosure.
FCPA Scrutiny Of GE Healthcare Reaches Six Years
Remember when a high-ranking Department of Justice official declared in 2017 that it was the intent of the DOJ “for our FCPA investigations to be measured in months, not years.” (See here for the prior post).
The statement was laughable when made and remains laughable approximately seven years later because since the statement was made FCPA scrutiny tends to average approximately 4-5 years. (See here).
Several current instances of FCPA scrutiny have dragged on for years including that of GE Healthcare.
In this recent quarterly filing, the company disclosed:
Nearly Four Years Later, Edwards Lifesciences Remains Under FCPA Scrutiny
As highlighted in this prior post, in mid-2021, Edwards Lifesciences (a California based corporation which describes itself as “the global leader in patient-focused medical innovations for structural heart disease, as well as critical care and surgical monitoring”) disclosed FCPA scrutiny.
Specifically, the company disclosed that it was “investigating whether the allocation of certain grants and other payments initiated by certain employees of the Company in Japan violate certain provisions of the Foreign Corrupt Practices Act (“FCPA”). The Company has voluntarily notified the SEC and the U.S. Department of Justice (“DOJ”) that it has engaged outside counsel to conduct this investigation.”