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Fresenius Medical Care Pays Approximately $232 Million To Resolve Its Long-Standing FCPA Scrutiny

By on March 29, 2019 in 2019 Enforcement Actions, Angola, Anything of Value, Benin, Bosnia, Burkina Faso, Cameroon, Charitable Contributions, China, Distributor Issues, DOJ Enforcement Action, Fresenius Medical Care, Gabon, Healthcare Providers As Foreign Officials, Ivory Coast, Joint Venture, Medical Device Industry, Mexico, Monitor, Morocco, Niger, Permits / Licenses / Customs / Tax, Saudi Arabia, SEC Enforcement Action, Senegal, Serbia, Spain, Travel and Entertainment, Turkey
fresenius

German healthcare firm Fresenius Medical Care AG (a company with American Depositary Receipt shares traded on the NYSE) has been under FCPA scrutiny since 2012 (no that is not a typo).

Today the DOJ and SEC announced (here and here) an approximate $232 million enforcement action ($84.7 million to the DOJ and $147 million to the SEC) against the company for alleged bribery schemes involving physicians and other healthcare personnel in Angola, Saudi Arabia, Morocco, Spain, Turkey, Gabon, Benin, Burkina Faso, Senegal, Ivory Coast, Niger, Cameroon China, Serbia, Bosnia, and Mexico.

While not specified in any of the resolution documents, the DOJ’s non-prosecution agreement and SEC’s administrative order make generic reference to the Angola and Saudi Arabia conduct involving ‘agents and employees utiliz[ing] the means and instrumentalities of U.S. interstate commerce, including the use of internet-based email accounts hosted by numerous service providers located in the United States.”

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Ho Convicted Of FCPA And Related Offenses

By on December 6, 2018 in Chad, Charitable Contributions, Chi Ping Patrick Ho, FCPA Trial, FCPA Trials, Financial Services Industry, Joint Venture, Oil and Gas Industry, Political Contributions, Uganda, Unsuccessful Bribery Schemes
Ho

As highlighted in this previous post, in November 2017 Chi Ping Patrick Ho (pictured) and Cheikh Gadio were criminally charged with conspiring to violate the Foreign Corrupt Practices Act, violating the FCPA, conspiring to commit international money laundering, and committing international money laundering in connection with alleged bribery schemes in Chad and Uganda on behalf of China Energy Fund Committee, an entity funded by CEFC China Energy Company Ltd.

In July 2018, Ho’s motion to dismiss was denied (see here), in September 2018 the DOJ quietly dismissed charges against Gadio (see here), and in late November Ho’s trial began with Gadio as a primary DOJ witness.

Yesterday, the DOJ announced that after a one week trial a federal jury found Ho guilty of one count of conspiring to violate the FCPA, four counts of violating the FCPA, one count of conspiring to commit international money laundering and one count of committing international money laundering.

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United Technologies Corp. Resolves $13.9 Million Enforcement Action

By on September 13, 2018 in 2018 Enforcement Actions, Aviation Industry, Azerbaijan, Building Systems, China, Distributor Issues, Gifts, Indonesia, Internal Controls, International Aero Engines, Joint Venture, Kuwait, Otis Elevator, Pakistan, Pratt & Whitney, Russia, SEC Enforcement Action, South Korea, Thailand, Third Parties, Travel and Entertainment, United Technologies
UTC

Yesterday, the SEC announced that United Technologies Corporation resolved a $13.9 million Foreign Corrupt Practices Act enforcement action.

The conduct at issue concerned Otis Elevator Co. (a wholly-owned subsidiary of UTC), Pratt & Whitney (an operating division of UTC), and International Aero Engines (a joint venture of five aerospace companies including Pratt & Whitney) regarding a Russian and Azerbaijani improper payment scheme, a China aviation scheme, improper payments for Otis Elevator sales in China, and leisure travel for foreign officials from several countries including China, Kuwait, South Korea, Pakistan, Thailand, and Indonesia.

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Dun & Bradstreet Resolves $9.2 Million Enforcement Action Based On Conduct Of Two Indirect Chinese Subsidiaries From 6-12 Years Ago

By on April 24, 2018 in 2018 Enforcement Actions, China, Due Diligence, Dun & Bradstreet, Fapiaos, Joint Venture, Media Industry, Merger Issues, SEC Enforcement Action, Third Parties
D&B

As highlighted in this prior post, over six years ago Dun & Bradstreet (a leading source of commercial information and insight on businesses) announced that it was under Foreign Corrupt Practices Act scrutiny concerning conduct in China.

Yesterday, the SEC (Snails-Pace Enforcement Commission) announced that D&B agreed to resolve an FCPA enforcement action by paying approximately $9.2 million to “arising from improper payments made by two Chinese subsidiaries.”

This administrative order states, in summary fashion:

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Issues To Consider From The AB InBev Enforcement Action

By on October 5, 2016 in Anheuser-Busch InBev, Beverage Industry, Books and Records, Disgorgement, Gray Cloud, Internal Controls, Joint Venture, Root Causes
Issues

This previous post went in-depth into the SEC’s Foreign Corrupt Practices Act enforcement action against AB InBev.

This post continues the analysis by highlighting additional issues to consider from the enforcement action.

Timeline

Per the SEC’s order, the SEC began its inquiry in October 2011.

Thus from start to finish, AB InBev’s FCPA scrutiny lasted just shy of five years.

It is absolutely inexcusable on any level for FCPA scrutiny to last five years. If the SEC wants the public to view its FCPA enforcement program as legitimate, credible, and effective, it must resolve instances of FCPA scrutiny much faster.

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