Top Menu

Navigation

Credit Suisse Resolves $99 Million SEC FCPA (And Related) Enforcement Action

By on October 20, 2021 in 2021 Enforcement Actions, CreditSuisse, Due Diligence, Financial Services Industry, Foreign Issuers, Mozambique, SEC Enforcement Action, Third Parties
CS

As highlighted here and here, in July 2018 Credit Suisse resolved a $77 million Foreign Corrupt Practices Act enforcement action focused on alleged improper hiring practices in China and the Asia Pacific region.

As highlighted here, in January 2019 the DOJ unsealed criminal charges against former Credit Suisse bankers Andrew Pearse, Surjan Singh, and Detelina Subeva charging them with conspiracy to violate the FCPA’s anti-bribery and internal controls provisions in connection with financing various Mozambican maritime projects.

This follow-up post wondered what the 2019 enforcement action would mean for Credit Suisse.

Continue Reading

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:

Continue Reading

Approximately 4.5 Years After The Enforcement Action, The SEC Orders Frank To Pay A $35,000 Civil Penalty

By on March 18, 2021 in Joel Frank, Och-Ziff Capital, Och-Ziff Capital Management, SEC Enforcement Action
Joelfrank

In September 2016, in connection with certain of the same core conduct alleged in the Och-Ziff Foreign Corrupt Practices Act enforcement action, the SEC also released an administrative order finding that (see here for the prior post) Daniel Och (CEO and Chairman of Och-Ziff) was a cause of certain of the company’s FCPA books and records violations and that Joel Frank (CFO – pictured) was a cause of certain of the company’s FCPA books and records and internal controls violations.

Without admitting or denying the SEC’s findings, Och agreed to pay approximately $2.2 million and Frank likewise agreed to resolve the action without admitting or denying the SEC’s findings and the SEC stated that and “a penalty will be assessed against him at a future date.”

Oddly, it took approximately 4.5 years, but earlier this week the SEC ordered that Frank pay a $35,000 civil penalty.

Continue Reading

DOJ / SEC Announce Net $1.66 Billion (The Largest Of All-Time) FCPA Enforcement Action Against Goldman Sachs In Connection With 1MDB Fund

By on October 23, 2020 in 2020 Enforcement Action, Abu Dhabi, DOJ Enforcement Action, Executive Compensation, Financial Services Industry, Goldman Sachs, Internal Controls, SEC Enforcement Action
Goldman

As highlighted in this prior post, in November 2018 the DOJ announced criminal charges against former Goldman Sachs employees Roger Ng and Tim Leissner, and Low Taek Jho (Jho Low – an individual “known to be close to various high-ranking officials in Malaysia and Abu Dhabi” who “worked as an intermediary in related to 1MDB and other foreign government officials on numerous financial transactions and projects involving Goldman and others) for paying bribes to various Malaysian and Abu Dhabi officials in connection with 1Malaysia Development Berhad (1MDB), Malaysia’s state-owned and state-controlled investment development company.

This prior post asked: what does this mean for Goldman Sachs?

We now know the answer as the DOJ and SEC announced (here and here) a net $1.66 billion FCPA enforcement action against Goldman Sachs and a related entity. This represents the largest FCPA enforcement action of all-time (see here for the prior top ten list).

Continue Reading

Brazilian Company Bribes Brazilian Officials, U.S. Collects Net $155 Million In FCPA Enforcement Action

By on October 15, 2020 in 2020 Enforcement Action, Brazil, DOJ Enforcement Action, Executive Enforcement Action, Financial Services Industry, Foreign Issuers, Foreign Non-Issuer Company, Individual Enforcement Action, Joesley Batista, Jurisdiction, Pilgrims Pride, SEC Enforcement Action, Wesley Batista
J&F

This recent post posed the question of whether “foreign” in the FCPA’s “foreign official” element means as it relates to the U.S. or as it relates to the specific company at issue. The post highlighted how in recent years the FCPA enforcement agencies have adopted the former interpretation in bringing FCPA enforcement actions against foreign companies for allegedly bribing their own “domestic” officials – but “foreign” as it relates to the U.S.

In yet another example, the DOJ and SEC announced yesterday (see here and here) that J&F Investimentos S.A. (J&F a private investment holding company based in Brazil that owns approximately 250 companies primarily involved in the meat and agriculture business) and a related entity resolved a net $155 million FCPA enforcement action for allegedly bribing Brazilian officials.

The enforcement action involved a: (i) DOJ component against J&F resolved through a plea agreement in which the company paid net $128.2 million; and (ii) an SEC component against J&F, a related entity, and two individuals in which the related entity paid approximately $26.8 million and the two individuals each paid a $550,000 civil penalty.

Continue Reading

Powered by WordPress. Designed by WooThemes