Top Menu

Stericycle Discloses $4.1 Million In Monitor Expenses

stericle

The article “FCPA Ripples” highlights the many financial ripple effects of Foreign Corrupt Practices scrutiny and enforcement beyond an actual enforcement action by the DOJ/SEC.

Among the financial ripple effects are the “three buckets” of FCPA financial exposure: (1) pre-enforcement action professional fees and expenses; (2) settlement amount; and (3) post-enforcement action professional fees and expenses.

Numerous examples (based on company disclosures) demonstrated that pre-enforcement action professional fees and expenses are typically the largest financial hit to companies as those expenses are often three times (and sometimes higher) the settlement amount.

Continue Reading

Potpourri

Potpourri

Ericsson

As highlighted in this prior post, in 2019 Ericsson (a Swedish telecom company with American Depositary Shares traded in the U.S.) resolved a $1.06 billion FCPA enforcement action concerning conduct in Djibouti, China, Vietnam, Kuwait, Indonesia, and Saudi Arabia.

As part of the resolution, Ericsson was required to engage an independent compliance monitor for a three-year period.

In late 2022, Ericsson announced “that it has agreed with the U.S. Department of Justice (DOJ) and Securities and Exchange Commission (SEC) to extend the term of the Company’s Independent Compliance Monitor for one year, to June 2024.” (See here for the prior post).

Continue Reading

Assistant AG Polite Calls Prosecutors “Community Problem-Solvers” – Announces Yet Additional Changes To DOJ Policy

Polite

Last week, Kenneth Polite (DOJ Assistant Attorney General -Criminal Division) gave this speech in which he called prosecutors “community problem-solvers” and announced (yet additional) changes to DOJ policy.

Specifically, Polite announced “significant changes” to how the DOJ “consider[s] a corporation’s approach to the use of personal devices as well as various communications platforms and messaging applications, including those offering ephemeral messaging.”

In addition, Polite described how the DOJ has “updated its policies concerning corporate compensation systems” and issued a “revised memorandum on the selection of monitors in Criminal Division matters” including that “any submission of a monitor candidate by the company and selection of a monitor candidate by the Criminal Division should be made in keeping with the department’s commitment to diversity, equity, and inclusion.”

Continue Reading

Ericsson Attempts To Put A Positive Spin On Monitor Extension (Even Though It Is Not A Positive Development For The Company)

positivespin

As highlighted in this prior post, in December 2019 Swedish telecom company Ericsson (a company with American Depositary Shares traded in the U.S.) resolved a net $1.06 billion Foreign Corrupt Practices Act enforcement action – the largest of all-time – concerning conduct in Djibouti, China, Vietnam, Kuwait, Indonesia, and Saudi Arabia.

The DOJ prong of the enforcement action involved a one count criminal information against Ericsson subsidiary Ericsson Egypt Ltd. charging conspiracy to violate the FCPA’s anti-bribery provisions resolved through a plea agreement and a criminal information against Ericsson charging conspiracies to violate the FCPA’s anti-bribery, books and records, and internal controls provisions resolved through a deferred prosecution agreement. The DPA required Ericsson to retain an independent compliance monitor for a three year term. As a condition of resolving a parallel SEC matter, Ericsson was also required to retain a monitor for a three year period.

In October 2021, the DOJ accused Ericsson of breaching its DPA obligations. (See here).

Recently, Ericsson announced “that it has agreed with the U.S. Department of Justice (DOJ) and Securities and Exchange Commission (SEC) to extend the term of the Company’s Independent Compliance Monitor for one year, to June 2024.”

Continue Reading

Friday Roundup

Roundup

Settled, not a victim, and monitor reports. It’s all here in the Friday roundup.

Settled

As highlighted in this prior post, in 2021 Shaquala Williams (a former employee of JPMorgan in New York city) filed a civil complaint in federal court (S.D.N.Y) against JPMorgan in connection with (at least in part) compliance obligations imposed upon JPMorgan in connection with resolution of its 2016 FCPA enforcement action. JPMorgan responded (see here) by filing a motion for summary judgment which was mostly denied by Judge Jed Rakoff who set a trial date for November 2022.

As reported here, the parties have reached an agreement to resolve the matter.

Continue Reading

Powered by WordPress. Designed by WooThemes