It’s A Joke How Long Companies Are Typically Under FCPA Scrutiny
As highlighted in this prior post, in February 2018 Albemarle Corp. (a North Carolina based chemical company) disclosed Foreign Corrupt Practices Act scrutiny.
Specifically the company disclosed:
“Following receipt of information regarding potential improper payments being made by third party sales representatives of our Refining Solutions business, we promptly retained outside counsel and forensic accountants to investigate potential violations of the Company’s Code of Conduct, the Foreign Corrupt Practices Act (“FCPA”), and other potentially applicable laws. Based on this internal investigation, we have voluntarily self-reported potential issues relating to the use of third party sales representatives in our Refining Solutions business to the U.S. Department of Justice (“DOJ”) and Securities and Exchange Commission (“SEC”), and intend to cooperate with the DOJ and SEC in their review of these matters. In connection with our internal investigation, we have implemented, and are continuing to implement, appropriate remedial measures. At this time, we are unable to predict the duration, scope, result or related costs associated with any investigations by the DOJ or SEC. We also are unable to predict what, if any, action may be taken by the DOJ or SEC or what penalties or remedial actions they may seek.”
Fast forward and approaching 4.5 years later, Albemarle is still under FCPA scrutiny.
Issues To Consider From The Stericycle Enforcement Action
This previous post highlighted the recent net $59 million Foreign Corrupt Practices Act enforcement action against Stericycle (an Illinois based medical waste disposal company) for conduct in Brazil, Mexico, and Argentina.
Portions of the alleged conduct were egregious in that an executive of the company’s Latin America division orchestrated the bribery schemes and others associated with the company used “spreadsheets to track the bribe payments.”
Nevertheless, there are several legal and policy issues to consider from the enforcement action.
Timeline
As highlighted in this post, Stericycle disclosed its FCPA scrutiny in mid-2017.
Friday Roundup
Overheard, interesting and for the reading stack.
It’s all here in the Friday roundup.
Overheard
In connection with the ongoing saga of Ericsson (see here for a recent post) during a recent investor conference call, E. Borje Ekholm (President, CEO and Director) stated:
Like Prior Years, The Gray Cloud Of FCPA Scrutiny Lasted Too Long In 2021
This recent post highlighted the origins of corporate Foreign Corrupt Practices Act enforcement actions in 2021.
Continuing with the 2021 FCPA statistical feast, this post follows the chronology of scrutiny to enforcement and highlights one of the most troubling policy issues when it comes to FCPA enforcement.
That is – FCPA scrutiny simply lasts too long. Specifically, as highlighted below, 4 years was the approximate median length of time companies that resolved FCPA enforcement actions in 2021 were under scrutiny.
OECD Revises Its “Recommendations” And Green Lights The Facade Of Enforcement
Recently, the OECD released a laundry list of updated recommendations for “further combating bribery of foreign public officials in international business transactions.”
As further proof that the OECD prioritizes quantity of enforcement over quality of enforcement (see here), the OECD is now recommending that member countries to the OECD Anti-Bribery Convention “consider using a variety of forms of resolutions when resolving criminal, administrative, and civil cases with both legal and natural persons, including non-trial resolutions.”
By doing so, the OECD is green lighting the “facade” of enforcement (see here and here for prior articles on the subject).