On Permits …
The root cause of many Foreign Corrupt Practices Act enforcement actions is a foreign law or regulation that forces a company (through an employee or agent) into a relationship with a “foreign official.”
This root cause analysis is often fairly straightforward: the foreign law or regulation often creates bureaucracy; bureaucracy creates points of contact with foreign officials; points of contact with foreign officials create discretion; discretion creates the opportunity for a foreign official to misuse their position by making bribe demands.
This analysis is not meant to excuse or condone the conduct at issue, but rather to understand how and why there was a “point of contact” with a foreign official in the first place.
Issues To Consider From The Lifecore Enforcement Action
This previous post concerned the FCPA enforcement action against Lifecore Biomedical, Inc. (f/k/a Landec Corporation) in connection with alleged Foreign Corrupt Practices Act violations involving wastewater issues in Mexico.
This post highlights additional issues to consider.
Timeline
As highlighted in this prior post, in January 2020 Landec disclosed:
Issues To Consider From The Nu Skin Enforcement Action
This previous post highlighted the SEC’s Foreign Corrupt Practices Act enforcement action against Nu Skin Enterprises.
This post continues the analysis by highlighting additional issues to consider from last week’s enforcement action.
Similar, Yet Different
Before the Nu Skin action, there have been several FCPA enforcement actions that have included, in whole or in part, charitable donations as highlighted in this recent post.
All of the prior enforcement actions though appear to have been involved pre-existing, presumably bona fide charitable organizations that a “foreign official” nevertheless was involved in or was valued by the “foreign official.”