Panasonic Archives - FCPA Professor

In Connection With The Panasonic FCPA Enforcement Action, The SEC Awards A Whistleblower $28 Million

By Mike Koehler on May 20, 2021 in Panasonic, Whistleblowers

As highlighted in this prior post, in April 2018 the DOJ and SEC announced a parallel Foreign Corrupt Practices Act enforcement action against Japan-based Panasonic Corp. and a U.S. subsidiary Panasonic Avionics Corp. (PAC) pursuant to which the entities agreed to pay $280 million.

According to the government, PAC employees, including senior executive, engaged in a scheme to retain consultants for improper purposes other than providing actual consulting services. In one instance, PAC executives negotiated a consulting position with a senior contracts official at a Middle East airlines at the same time the alleged “foreign official” was involved in negotiating a contract amendment on behalf of the airline with PAC. In other instances, PAC employees concealed use of sales agents in Asia, some of which did not pass PAC’s internal diligence requirements.

SEC Finds That Former Panasonic Executive Authorized Conduct Causing Company’s FCPA Violations, Another Former Executive Found To Engage In Improper Revenue Recognition Practices

By Mike Koehler on December 20, 2018 in 2018 Enforcement Actions, Authorize, Aviation Industry, Executive Enforcement Action, FCPA Related Charges, Gaining Access to Confidential Documents, Hiring Family Members of Foreign Officials, Panasonic, Paul Margis, SEC Enforcement Action, Takeshi Uonaga

As highlighted in prior posts (here, here and here) in April 2018 the DOJ and SEC announced a $280 million Foreign Corrupt Practices Act enforcement action against Japan-based Panasonic Corp. and a U.S. subsidiary Panasonic Avionics Corp. (PAC).

In the words of the government “between 2007 and 2013, PAC employees, including senior executives, engaged in a scheme to retain consultants for improper purposes other than for providing actual consulting services.”

Earlier this week, the SEC returned to the same core conduct to bring administrative actions (here and here) against Paul Margis (pictured – a former President and CEO of PAC) and Takeshi Uonaga (PAC’s former CFO). The Margis action finds that he authorized various conduct giving rise to the company’s FCPA liability, whereas the Uonaga matter is materially different in that it is a revenue recognition matter.

Flipping The Panasonic Enforcement Action Allegations Into “Best Practices”

By Mike Koehler on May 7, 2018 in Compliance, Panasonic, Third Parties

Compliance professionals should develop the skill of flipping enforcement action allegations into “best practices.”

In doing so, recognize that “best practices” are not necessarily legal requirements. The Foreign Corrupt Practices Act sets forth the law (not negotiated DOJ or SEC resolution vehicles not subjected to any meaningful judicial scrutiny) and when it comes to internal controls the law states that issuers shall ” devise and maintain a system of internal accounting controls sufficient to provide reasonable assurances that” certain specified objectives are met.

Nevertheless, compliance professionals need to be cognizant of allegations in enforcement actions for the simple reason that the DOJ and the SEC hold the big sticks and will have certain expectations of companies.

Issues To Consider From The Panasonic Enforcement Action

By Mike Koehler on May 2, 2018 in Gray Cloud, Identity of Foreign Official, Kokesh, Panasonic, Paul Bottiaux, Paul Margis, SOX Certification Issues, Statute of Limitations, Uncategorized, Voluntary Disclosure

This prior post went in-depth into the $280 million Foreign Corrupt Practices Act enforcement action against Japan-based Panasonic Corp. and a U.S. subsidiary Panasonic Avionics Corp. (PAC).

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

Timeline

As highlighted in this prior post, Panasonic’s FCPA scrutiny appears to have begun in early 2013. Thus from start to finish, the company’s FCPA scrutiny lasted approximately 5.5 years.

Panasonic Corp. And Related Entity Resolve $280 Million Avionics Industry FCPA Enforcement Action

By Mike Koehler on April 30, 2018 in 2018 Enforcement Actions, Airline Industry, Auditing Issues, Books and Records, China, DOJ Enforcement Action, Due Diligence, FCPA Related Charges, Foreign Issuers, Internal Controls, Middle East, Monitor, Panasonic, SEC Enforcement Action, SOX Certification Issues, Third Parties

Yesterday, the DOJ and SEC announced (here and here) a parallel Foreign Corrupt Practices Act enforcement action against Japan-based Panasonic Corp. and a U.S. subsidiary Panasonic Avionics Corp. (PAC).

As stated in the enforcement action, Panasonic was an issuer until April 2013 and again “for a brief period between 2015 and 2016 as a result of a share swap that retriggered Panasonic’s obligation to file its financial statements with the SEC.”

As highlighted in this post, the enforcement action consisted of:

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In Connection With The Panasonic FCPA Enforcement Action, The SEC Awards A Whistleblower $28 Million

Flipping The Panasonic Enforcement Action Allegations Into “Best Practices”

Issues To Consider From The Panasonic Enforcement Action

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