Taking A Helicopter To A L.A. Lakers Game
In June 2023, the DOJ announced an enforcement action against Amadou Kane Diallo (pictured – a Senegalese national and California resident who was the CEO of two California-based companies: Virtual Advisors LLC and Liquide Inc).
As stated in the DOJ release:
“Diallo allegedly solicited investments in his companies from at least 11 individuals for purported business opportunities in technology, health care, real estate, home ownership, and service to the African diaspora. Diallo allegedly made various false representations, including that investor funds would be spent to further investors’ interests, or not be spent at all, and instead used as “skin in the game” to attract institutional investors. Diallo is also alleged to have lied to potential investors, claiming that he had raised hundreds of millions of dollars for another investment firm and its real estate investment fund when, in fact, he had never raised any such funds.
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:
Lifecore Resolves FCPA Enforcement Action Regarding Wastewater Issues In Mexico
Yesterday, the DOJ released this so-called “declination with disgorgement” letter regarding Lifecore Biomedical, Inc. (f/k/a Landec Corporation) in connection with alleged Foreign Corrupt Practices Act violations involving wastewater issues in Mexico.
Pursuant to the letter agreement, Lifecore agreed to “disgorge” $406,505 in “costs avoided” (which of course is an interesting spin on disgorgement which is traditionally understood to mean relinquishment of unjust gains).
The letter agreement states in full:
Monkey Business: Charles River Laboratories International Also Under Scrutiny Concerning Importation Of Non-Human Primates From Asia
This post earlier this week highlighted how Inotiv Inc. (an Indiana based “contract research organization (“CRO”) dedicated to providing nonclinical and analytical drug discovery and development services to the pharmaceutical and medical device industries and selling a range of research-quality animals and diets to the same industries as well as academia and government clients”) is under Foreign Corrupt Practices Act scrutiny concerning its importation of non-human primates from Asia.
Charles River Laboratories International Inc. is a Massachusetts based company that “provides essential products and services to help pharmaceutical and biotechnology companies, government agencies and leading academic institutions around the globe accelerate their research and drug development efforts.”
Importation Of Non-Human Primates From Asia Draws FCPA Scrutiny
Foreign Corrupt Practices Act scrutiny can arise in a wide variety of scenarios.
Given how the DOJ and SEC interpret the FCPA, any point of contact a company (through its employees, agents, etc) have with a foreign official may give rise to FCPA scrutiny.
This post discusses an unusual instance of FCPA scrutiny concerning the importation of non-human primates from Asia.
Inotiv Inc. is an Indiana based “contract research organization (“CRO”) dedicated to providing nonclinical and analytical drug discovery and development services to the pharmaceutical and medical device industries and selling a range of research-quality animals and diets to the same industries as well as academia and government clients.”