Non-FCPA FCPA Enforcement Actions Archives - Page 3 of 6

It Makes No Sense

By Mike Koehler on June 15, 2022 in Non-FCPA FCPA Enforcement Actions

There are some topics in the Foreign Corrupt Practices Act space that are covered ad nauseam. Yearly enforcement statistics come to mind as well as the odd practice of “media” covering law firm client alerts as if they are news.

Then, there are other topics in the FCPA space that receive little coverage. In this later category are FCPA enforcement actions (that is those involving FCPA books and records and internal controls charges) that do not necessarily involve foreign bribery.

These pages have long focused on so-called non-FCPA FCPA enforcement actions because they often present a perplexing issue. That is, the same legal violation is generally enforced in different ways.

It’s as if speeding tickets in the same jurisdiction involving a blue car are handled differently than a speeding ticket involving a red car.

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

By Mike Koehler on June 9, 2022 in Non-FCPA FCPA Enforcement Actions

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 Synchronoss Technologies, Inc. (SNCR) and seven senior employees, including the former CFO, in connection with their roles related to long-running accounting improprieties.

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

By Mike Koehler on April 19, 2022 in Books and Records, Internal Controls, Non-FCPA FCPA Enforcement Actions, Rollins / Orkin

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 Rollins Inc. (an Atlanta based company that provides termite and other pest control services to residential and commercial customers including through such brands as Orkin) and Paul Northern (the company’s for CFO) for engaging “in improper accounting practices in order to boost its publicly-reported quarterly earnings per share (EPS) to meet research analysts’ consensus estimates.”

The Kraft Heinz Company Resolves, Among Other Things, A Books and Records And Internal Controls Matter

By Mike Koehler on September 7, 2021 in Books and Records, Eduardo Pelleissone, Internal Controls, Klaus Hofmann, Non-FCPA FCPA Enforcement Actions, The Kraft Heinz Co.

There has been only two “traditional” (that is involving foreign bribery) corporate Foreign Corrupt Practices Act enforcement actions thus far in 2021.

However, there have been several other FCPA enforcement actions.

Confused?

Don’t be, just realize that the FCPA has always been a law much broader than its name suggests and the FCPA’s books and records and internal controls provisions (among the most generic legal provisions one can possibility find) can be implicated in a variety of circumstances that have nothing to do with foreign bribery.

The latest example to demonstrate this point is last week’s announcement by the SEC of a $62 million enforcement action against The Kraft Heinz Company for “a long-running expense management scheme that resulted in the restatement of several years of financial reporting.”

Further To The SEC’s Inconsistent Approach To Enforcing The FCPA’s Books And Records And Internal Controls Provisions

By Mike Koehler on September 3, 2021 in Books and Records, Internal Controls, Non-FCPA FCPA Enforcement Actions

Other than this website (see here, here, here, here, here, here, here and here), there seems to be little focus on the SEC’s inconsistent approach to enforcing the FCPA’s books and records and internal controls provisions.

Which is too bad because consistency is a basic rule of law principle.

In other words, the same legal violation ought to be sanctioned in the same way. When the same legal violation is sanctioned in materially different ways, trust and confidence in law enforcement is diminished.

As highlighted in the numerous prior posts as well as the latest example described below, there sure does seem to be a lack of consistency between how the SEC resolves Foreign Corrupt Practices Act books and records and internal controls violations.

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It Makes No Sense

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

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

The Kraft Heinz Company Resolves, Among Other Things, A Books and Records And Internal Controls Matter

Further To The SEC’s Inconsistent Approach To Enforcing The FCPA’s Books And Records And Internal Controls Provisions

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