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SEC Extracts $15 Million From Rio Tinto In First Corporate Enforcement Action Of 2023

By on March 7, 2023 in 2023 Enforcement Action, Foreign Issuers, Guinea, Mining Industry, Political Contributions, Rio Tinto, SEC Enforcement Action, Third Parties, Unsuccessful Bribery Schemes
RioTinto

In the minds of some (including former FCPA enforcement officials – see here), Foreign Corrupt Practices Act enforcement is a convenient cash cow for the U.S. government.

Those who believe this will find new support in the first corporate FCPA enforcement action of 2023.

The basic findings are as follows.

Approximately 12 years ago, Rio Tinto (a metal and mining company with headquarters in Australia and the United Kingdom) hired a French investment banker and close friend of a former senior Guinean government official as a consultant to help the company retain mining rights in Guinea.

Even though both Australia and the United Kingdom have laws and law enforcement resources to adequately address the conduct at issue, the U.S. nevertheless extracted $15 million from Rio Tinto because the company had American Depository Shares that traded on a U.S. exchange.

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South Korea’s KT Corp. Resolves $6.3 Million FCPA Enforcement Action

By on February 18, 2022 in 2022 Enforcement Action, Charitable Contributions, Foreign Issuers, Internal Controls, KT Corp., KT Corporation, Political Contributions, SEC Enforcement Action, South Korea, Telecommunications Industry, Vietnam
KT

KT Corporation is a Seoul, South Korea based telecommunications company with American Depositary Shares registered with the SEC and traded on the New York Stock Exchange.

Yesterday, the SEC announced that the company agreed to pay $6.3 million “to resolve charges that it violated the Foreign Corrupt Practices Act by providing improper payments for the benefit of government officials in Korea and Vietnam.”

In summary fashion, this administrative order finds:

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Bad Advertising – Ad Group WPP Resolves $19.2 Million FCPA Enforcement Action

By on September 27, 2021 in 2021 Enforcement Actions, Advertising Industry, Brazil, China, Foreign Issuers, India, Merger Issues, Permits / Licenses / Customs / Tax, Peru, Political Contributions, SEC Enforcement Action, Tax Payments, Third Parties, WPP
WPP

Last Friday, the SEC announced that London-based WPP (the world’s largest advertising agency and a company with depositary shares traded on the New York Stock Exchange) agreed to resolve a $19.2 million Foreign Corrupt Practices Act enforcement action.

The enforcement action focused on WPP subsidiary conduct in India, China, Brazil and Peru.

In summary fashion, the SEC’s order finds:

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Ho Convicted Of FCPA And Related Offenses

By on December 6, 2018 in Chad, Charitable Contributions, Chi Ping Patrick Ho, FCPA Trial, FCPA Trials, Financial Services Industry, Joint Venture, Oil and Gas Industry, Political Contributions, Uganda, Unsuccessful Bribery Schemes
Ho

As highlighted in this previous post, in November 2017 Chi Ping Patrick Ho (pictured) and Cheikh Gadio were criminally charged with conspiring to violate the Foreign Corrupt Practices Act, violating the FCPA, conspiring to commit international money laundering, and committing international money laundering in connection with alleged bribery schemes in Chad and Uganda on behalf of China Energy Fund Committee, an entity funded by CEFC China Energy Company Ltd.

In July 2018, Ho’s motion to dismiss was denied (see here), in September 2018 the DOJ quietly dismissed charges against Gadio (see here), and in late November Ho’s trial began with Gadio as a primary DOJ witness.

Yesterday, the DOJ announced that after a one week trial a federal jury found Ho guilty of one count of conspiring to violate the FCPA, four counts of violating the FCPA, one count of conspiring to commit international money laundering and one count of committing international money laundering.

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Issues To Consider From The SQM Enforcement Action

By on February 7, 2017 in Gray Cloud, Internal Controls, Policy Considerations, Political Contributions, Sociedad Química y Minera de Chile S.A.
Issues

This previous post went in-depth into the $30.5 million Foreign Corrupt Practices Act enforcement action against Sociedad Quimica y Minera de Chile S.A. (SQM) announced on January 13th.  The action focused on the Chilean chemical and mining company’s conduct with Chilean officials.

As mentioned in the original post, there was no U.S. nexus alleged other than SQM having Series B shares, a form of American Depository Shares, listed on the New York Stock Exchange and thus being required to file periodic reports with the SEC.

This post highlights additional issues to consider.

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