Top Menu

Navigation

Chemical Company Albemarle Resolves A Net $218.4 Million Enforcement Action

By on September 29, 2023 in 2023 Enforcement Action, Albemarle Corp., Chemical Industry, China, DOJ Enforcement Action, Executive Compensation, Gaining Access to Confidential Documents, India, Indonesia, Internal Audit Issues, SEC Enforcement Action, Third Parties, United Arab Emirates, Vietnam
albemarle-logo

As highlighted in this prior post, in February 2018 Albemarle Corp. (a North Carolina based chemical company) disclosed Foreign Corrupt Practices Act scrutiny.

More than 5.5 years later, the DOJ and SEC announced a net $218.4 million FCPA enforcement action against the company.

The resolution included a DOJ non-prosecution agreement (pursuant to which the company agreed to pay a $98.2 million criminal penalty and $16.6 million in forfeiture) and an SEC administrative order (pursuant to which the company agreed to pay approximately $103.6 million in disgorgement and prejudgment interest).

Continue Reading

Billboard Worthy: Clear Channel Outdoor Resolves $26.1 Million Enforcement Action

By on September 28, 2023 in 2023 Enforcement Action, Advertising Industry, Anything of Value, Auditing Issues, China, Clear Channel Outdoor Holdings, SEC Enforcement Action, Third Parties, Travel and Entertainment
clearchanneloutdoor

Approximately 5.5 years ago (see here for the prior post), Clear Channel Outdoor Holdings (a public subsidiary of iHeartMedia and one of the world’s largest outdoor advertising corporations) disclosed FCPA scrutiny based on the conduct of “several employees of Clear Media Limited, an indirect, non-wholly-owned subsidiary of the Company whose ordinary shares are listed …. on the Hong Kong Stock Exchange.”

Today, the SEC (an enforcement agency whose officials have previously stated that it “should focus on bringing matters to resolution swiftly”) announced a $26.1 million FCPA enforcement action against the company.

In summary fashion, this administrative order finds:

Continue Reading

Duped By Certain China Subsidiary Employees, 3M Resolves A $6.5 Million Enforcement Action

By on August 25, 2023 in 2023 Enforcement Action, 3M, Books and Records, China, Healthcare Companies, Healthcare Providers As Foreign Officials, Internal Controls, SEC Enforcement Action, Third Parties, Travel and Entertainment
3m

The SEC announced today that 3M resolved a $6.5 million Foreign Corrupt Practices Act enforcement.

The basics are as follows.

Approximately 6-10 years ago, a former Marketing Manager of a 3M China-based subsidiary “secretly” provided “tourism activities” for Chinese health care officials.

The Marketing Manager “would create a travel itinerary that included various legitimate business, training and marketing activities for submission to 3M-China’s compliance personnel for approval,” however there were “alternate itineraries” that “consisted of various tourism activities at or near the location of the educational events.”

There is no suggestion that anyone at 3M headquarters knew of or approved of the conduct. Indeed, subsidiary employees, among other things, “falsified internal compliance documents that affirmatively denied and/or omitted mention of the Tourism Activities that were planned as part of the overseas trip.”

Continue Reading

Colombian Entities Resolve Net $60.6 Million FCPA Enforcement Action

By on August 14, 2023 in 2023 Enforcement Action, Colombia, Corficolombiana, DOJ Enforcement Action, Financial Services Industry, Foreign Issuers, Grupo Aval, Odebrecht, SEC Enforcement Action
Corfi

Once upon a time, a Colombian company (owned and controlled by another Colombian company with shares registered in the U.S.), through a wholly-owned and controlled subsidiary, agreed with a Brazilian company to form a joint venture and consortium to bid for public contracts with the Colombian government.

An executive of the Brazilian company informed an executive of the Colombian company that a Colombian lobbyist would help win projects by making bribe payments to Colombian officials and the Colombian company executive agreed.

That, in a nutshell, describes last week’s net $60.6 million Foreign Corrupt Practice Act enforcement action against Corporacion Financiera Colombiana S.A. (Corficolombiana) and Grupo Aval Acciones y Valores S.A. (Grupo Aval).

The enforcement action involved a DOJ component (in which the entities agreed to pay a net $20.3 million criminal penalty) and an SEC component (in which the entities agreed to pay approximately $40.3 million in disgorgement and prejudgment interest).

Continue Reading

Gartner Resolves $2.5 Million Enforcement Action

By on May 30, 2023 in 2023 Enforcement Action, Consulting Industry, Gartner, SEC Enforcement Action, South Africa, Third Parties
Gartner

Late last Friday afternoon on a holiday weekend, the SEC released one of the more pedestrian FCPA enforcement actions of recent memory.

The action involved Gartner Inc. (a technological research and consulting company) concerning conduct in 2014 and 2015 in South Africa.

To resolve the matter, Gartner agreed to pay approximately $2.5 million (856,764 in disgorgement and prejudgment interest and a $1.6 million civil penalty).

In summary fashion, this administrative order states:

Continue Reading

Powered by WordPress. Designed by WooThemes