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Former ComEd Executives And Associates Convicted Of FCPA Offenses

By on May 4, 2023 in Anne Pramaggiore, Books and Records, ComEd, Internal Controls, Jay Doherty, John Hooker, Michael McClain, Non-FCPA FCPA Enforcement Actions
ComEd

Earlier this week, a federal jury in Chicago found four former Commonwealth Edison (“ComEd”) executives and associates guilty on all counts charged, including conspiring to influence and reward the former Speaker of the Illinois House of Representatives in order to assist with the passage of legislation favorable to the electric utility company, in addition to multiple bribery and record falsification charges. (See here for the DOJ release).

Bribery of a state politician is not ordinarily the type of conduct that results in Foreign Corrupt Practices Act issues.

However, ComEd (a majority-owned indirect subsidiary of Exelon Corp) was an issuer (as was Exelon) and the FCPA has always been a law much broader than its name suggests because of the FCPA’s books and records and internal controls provisions.

Indeed, the most serious (from a sentencing and fine perspective) criminal charges the four individuals were found guilty of were record falsification in violation of the FCPA.

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“The Company Neglected To Comply With Basic Internal Control Requirements”

By on February 27, 2023 in African Gold, Internal Controls, Non-FCPA FCPA Enforcement Actions, Special Purpose Acquisition Company
noncompliance

The Foreign Corrupt Practices Act has always been a law much broader than its name suggests.

Sure, the FCPA contains anti-bribery provisions which concern foreign bribery.

Sure, the FCPA’s books and records and internal controls provisions can be implicated in foreign bribery schemes.

However, the fact remains that most FCPA enforcement actions (that is enforcement actions that charge or find violations of the FCPA’s books and records and internal controls provisions) have nothing to do with foreign bribery and these provisions are among the most generic legal provisions one can possibly find.

The latest example is this recent SEC enforcement action against African Gold (a publicly traded special purpose acquisition company incorporated in the Cayman Islands with its principal place of business in New York, New York).

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A Further Reminder That The FCPA Has Always Been A Law Much Broader Than Its Name Suggests

By on February 17, 2023 in Non-FCPA FCPA Enforcement Actions, Roadrunner Transportation Systems
roadrunner

The Foreign Corrupt Practices Act has always been a law much broader than its name suggests.

Sure, the FCPA contains anti-bribery provisions which concern foreign bribery.

Sure, the FCPA’s books and records and internal controls provisions can be implicated in foreign bribery schemes.

However, the fact remains that most FCPA enforcement actions (that is enforcement actions that charge or find violations of the FCPA’s books and records and internal controls provisions) have nothing to do with foreign bribery and these provisions are among the most generic legal provisions one can possibly find.

The latest example is this recent SEC enforcement action against shipping and logistics company Roadrunner Transportation Systems, Inc. for “engaging in a multi-year accounting fraud scheme.”

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A Further Reminder That The FCPA Has Always Been A Law Much Broader Than Its Name Suggests

By on February 8, 2023 in Books and Records, Gentex, Internal Controls, Non-FCPA FCPA Enforcement Actions
gentex

This type of post has been published several times before (see here and here among other posts), and once again today, to highlight an important (yet often overlooked) aspect of the Foreign Corrupt Practices Act: the FCPA has always been a law much broader than its name suggests.

Sure, the FCPA contains anti-bribery provisions which concern foreign bribery. Sure, the FCPA’s books and records and internal controls provisions can be implicated in foreign bribery schemes.

However, the fact remains that most FCPA enforcement actions (that is enforcement actions that charge or find violations of the FCPA’s books and records and internal controls provisions) have nothing to do with foreign bribery. For lack of a better term, let’s call these numerous enforcement actions non-FCPA, FCPA enforcement actions.

The latest example is this recent SEC enforcement action against Gentex (a Michigan based company that provides digital vision, connected car, dimmable glass, and fire protection products).

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Toys And Weed

By on October 26, 2022 in Cronos, Mattel, Non-FCPA FCPA Enforcement Actions
ToysCannabis

Well, that is a most curious headline isn’t it?

These pages have long highlighted SEC enforcement actions that charge or find violations of the FCPA’s books and records and internal controls provisions – yet have nothing to do with foreign bribery.

For lack of a better term, these pages have long called such enforcement actions “non-FCPA, FCPA enforcement actions” and these enforcement actions have long been highlighted to emphasize the point that – because of the books and records and internal controls provisions – the FCPA has long been a law much broader than its name suggests.

Recently, both toy maker Mattel and cannabis company Cronos resolved enforcement actions implicating the books and records and internal controls provisions.

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