U.S. Congresswomen Urge DOJ To Reopen FCPA Investigation Into Shell And Eni
As highlighted in this prior post, approximately seven years ago, Royal Dutch Shell and Eni became the subject of scrutiny in various countries concerning its acquisition of Oil Prospecting License 245 in Nigeria.
As highlighted in this prior post, in early 2021 the companies and various executives went to trial in Italy over a $1 billion payment made in connection with OPL 245 that prosecutors maintained was mostly for the purpose of bribes. The companies and the various executives were all acquitted.
Recently, Representative Maxine Waters (D-CA) and Representative Joyce Beatty (D-OH) authored this letter to U.S. Attorney General Merrick Garland urging the DOJ to reopen an FCPA investigation into Shell and Eni regarding their 2011 purchase of the rights to OPL 245.
Friday Roundup
Acquitted, scrutiny alert, under scrutiny again, across the pond, and compassionate release. It’s all here in the Friday roundup.
Acquittals
The so-called conventional wisdom in the U.S. is that business organizations under Foreign Corrupt Practices Act scrutiny (particularly publicly-traded corporations) simply can’t put the DOJ (or SEC for that matter) to its burden of proof in an enforcement action because it is too risky and may result in a “death sentence” for the company.
As highlighted in this post, the conventional wisdom is b.s., but the narrative still persists. In other countries however, corporations more frequently put government enforcement agencies to their burdens of proof by making factual and legal arguments.
Friday Roundup
Scrutiny alerts and updates, survey says, and for the reading stack. It’s all here in the Friday roundup.
Scrutiny Alerts and Updates
Credit Suisse
As highlighted in this prior post, Credit Suisse has been under FCPA scrutiny for approximately four years for its hiring practices.
Recently the company disclosed:
Friday Roundup
Quotable, scrutiny alerts and updates, and for the reading stack. It’s all here in the Friday roundup.
Quotable
Royal Dutch Shell resolved an FCPA enforcement action in 2010 concerning conduct in Nigeria. At present, the company is under FCPA scrutiny again for its business practices in Nigeria.
During a recent investor conference call, an analyst asked “in light of the various corruption cases that hit the oil sector, which seem to be more and more frequent, is there anything you think needs to be done better at the industry level to deal with violations of the FCPA?”
Royal Dutch CEO Ben van Beurden stated:
Friday Roundup
Odebrecht / Braskem settlement amount is significantly trimmed, a form of bribery?, quotable, deficient internal controls, and scrutiny alerts and updates. It’s all here in the Friday roundup.
Odebrecht / Braskem Settlement Amount Significantly Trimmed
There was much false and misleading reporting about the FCPA settlement amount in the December 2016 FCPA enforcement action against Odebrecht / Braskem.
As highlighted in this post, after accounting for various credits and deductions (including for payments to Brazil and Swiss law enforcement agencies and a claimed inability to pay) the net FCPA settlement amount (subject to potential future adjustments) was approximately $420 million. The $420 settlement amount consisted of approximately $260 million in connection with the Odebrecht criminal information and plea agreement; $94.8 million in connection with the Braskem criminal information and plea agreement; and $65 million in connection with the SEC’s related enforcement action against Braskem.