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SEC Brings $4 Million Enforcement Action Against An Irish Company (The Successor In Interest To A Canadian Company) For Paying Consultants In Russia In An Effort To Legalize Poker In Russia

RussiaPoker

This recent post about the Rio Tinto FCPA enforcement action posed the lingering question of whether FCPA enforcement is a convenient cash cow for the U.S. government. After all, when several former FCPA enforcement officials suggest as much, what are the rest of us supposed to think?

After all, in the Rio Tinto matter the U.S. extracted $15 million from a company (with headquarters in Australia and the United Kingdom) after the SEC found that the company 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 SEC nevertheless got involved because the company had American Depository Shares that traded on a U.S. exchange.

Earlier this week (and on the same day as the Rio Tinto matter was announced), the SEC also announced a $4 million FCPA enforcement action against Flutter International (a company headquartered in Ireland) – the successor in interest to The Stars Group (a company that was headquartered in Canada) – based on the finding that the “Company paid approximately $8.9 million to consultants in Russia in support of the Company’s operations and its efforts to have poker legalized in that country.” Even though both Ireland and Canada have laws and law enforcement resources to adequately address the conduct at issue, the SEC nevertheless got involved because The Stars Group at one time had shares traded on a U.S. exchange.

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Alexion Pharmaceuticals Resolves $21.5 Million Enforcement Action

alexionsoli

Yesterday, the SEC announced that Alexion Pharmaceuticals (a company that has been under scrutiny since mid-2015) agreed to approximately $21.5 million to resolve an enforcement action based on the actions of foreign subsidiaries involving the company’s primary drug Soliris.

The conduct at issue focused on Alexion Illac Ticarent Limited Sirketi (Alexion Turkey), Alexion Pharma OOO (Alexion Russia), Alexion Pharma Brazil and Alexion Pharma Colombia SAS (all wholly-owned subsidiaries whose books and records were consolidated into Alexion’s financial statements).

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A Look At The French Enforcement Action Against Airbus

airbus

Previous posts here and here looked at the U.S. Foreign Corrupt Practices Act enforcement action against Airbus.

This previous post looked at the U.K. Bribery Act enforcement action against Airbus.

This post completes the enforcement trilogy, bylooking at the French enforcement action against Airbus.

Like the prior U.S. and U.K. bribery enforcement action, the French enforcement action against Airbus (see here for the Judicial Public Interest Agreement) focused on the use of business partners in connection with sales or attempted sales in various countries.

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Six Years After Juniper Networks Disclosed FCPA Scrutiny, It Resolves A $11.7 Million Joke Of An Enforcement Action Based On Russia And China Subsidiary Conduct

junipernetworks

As highlighted in this previous post, in mid-2013 Juniper Networks disclosed that it was under FCPA scrutiny. Over six years later, the SEC announced yesterday that the company agreed to pay approximately $11.7 million to resolve the scrutiny.

As highlighted below, the enforcement action was based on the conduct of Russia and China subsidiary employees. In Russia, certain sales employees of the Russian representative office of Juniper’s subsidiary secretly agreed with third party channel partners to provide discounts to customers that were parked in off-book funds some of which were used to pay for customer trips, including trips for government officials, some of which were predominately leisure in nature. In China, certain sales employees of Juniper’s Chinese subsidiaries falsified trip and meeting agendas for customer events in seeking approval from Juniper’s Legal Department.

Based on the conduct alleged in the enforcement action (which is beyond any conceivable statute of limitations) as well as actual FCPA legal authority, the enforcement action is a $11.7 million joke.

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United Technologies Corp. Resolves $13.9 Million Enforcement Action

UTC

Yesterday, the SEC announced that United Technologies Corporation resolved a $13.9 million Foreign Corrupt Practices Act enforcement action.

The conduct at issue concerned Otis Elevator Co. (a wholly-owned subsidiary of UTC), Pratt & Whitney (an operating division of UTC), and International Aero Engines (a joint venture of five aerospace companies including Pratt & Whitney) regarding a Russian and Azerbaijani improper payment scheme, a China aviation scheme, improper payments for Otis Elevator sales in China, and leisure travel for foreign officials from several countries including China, Kuwait, South Korea, Pakistan, Thailand, and Indonesia.

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