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In A Highly Unusual Development, DOJ Brings A $19.6 Million Enforcement Action Against Beam Approximately 2.5 Years After The SEC’s Related Action

By on October 28, 2020 in 2020 Enforcement Action, Beam Inc., Beverage Industry, Corrupt Intent, DOJ Enforcement Action, Foreign Lawyers, India, Permits / Licenses / Customs / Tax, SOX Certification Issues, Uncategorized
Beam

DOJ and SEC Foreign Corrupt Practices Act enforcement actions against issuers based on the same core conduct are relatively common. However, such actions are nearly always coordinated and announced on the same day.

In a highly unusual (although not unprecedented) development, the DOJ announced yesterday a $19.6 million FCPA enforcement action against Beam Suntory Inc. based on the same core conduct in India at issue in the SEC’s July 2018 FCPA enforcement action against the company (see here).

Another unusual aspect of the Beam DOJ action was the DOJ’s position that the company did not voluntarily disclose. In contrast, in the 2018 SEC enforcement action the SEC said that the company voluntarily disclosed.

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Novartis Joins The Repeat Offender Club – This Time Paying Approximately $347 Million To Resolve An FCPA Enforcement Action

By on June 26, 2020 in 2020 Enforcement Action, Distributor Issues, DOJ Enforcement Action, Foreign Issuers, Greece, Healthcare Products, Healthcare Providers As Foreign Officials, Novartis, Pharmaceutical Industry, SEC Enforcement Action, South Korea, SOX Certification Issues, Third Parties, Travel and Entertainment, Vietnam
Novartis

What happens when the Greek, Swiss, and South Korean subsidiaries of a Swiss company engage in improper conduct in Greece, Vietnam and South Korea? Why of course, approximately $345 million flows into the U.S. treasury.

Yesterday, Novartis joined the long and growing list of FCPA repeat offenders as the DOJ and SEC announced (see here and here) a combined approximate $347 million enforcement action. (As highlighted in this prior post, in 2016 Swiss pharmaceutical company Novartis coughed up $25 million to resolve a SEC FCPA enforcement action focused on the conduct of its indirect Chinese subsidiaries).

Yesterday’s enforcement action included a DOJ component (in which the company agreed to pay approximately $234 million) and a SEC component (in which the company agreed to pay approximately $113 million).

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Cognizant Technology Solutions Resolves $25 Million SEC Enforcement Action In Connection With Various Licenses And Permits In India

By on February 15, 2019 in 2019 Enforcement Actions, Cognizant Technology Solutions, DOJ Enforcement Action, Permits / Licenses / Customs / Tax, SEC Enforcement Action, SOX Certification Issues, Technology Industry
cognizant

This previous post highlighted the DOJ and SEC’s individual enforcement action against Gordon Coburn and Steven Schwartz (former executives of Cognizant Technology Solutions) in connection with a planning permit in India.

This post highlights the SEC’s enforcement action (as well as the DOJ’s so-called declination letter) against the company based on the same core conduct in which the company, without admitting or denying the SEC’s findings, agreed to pay approximately $25 million in disgorgement and prejudgement interest.

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Issues To Consider From The Panasonic Enforcement Action

By on May 2, 2018 in Gray Cloud, Identity of Foreign Official, Kokesh, Panasonic, Paul Bottiaux, Paul Margis, SOX Certification Issues, Statute of Limitations, Uncategorized, Voluntary Disclosure
Issues

This prior post went in-depth into the $280 million Foreign Corrupt Practices Act enforcement action against Japan-based Panasonic Corp.  and a U.S. subsidiary Panasonic Avionics Corp. (PAC).

This post continues the analysis by highlighting additional issues to consider.

Timeline

As highlighted in this prior post, Panasonic’s FCPA scrutiny appears to have begun in early 2013. Thus from start to finish, the company’s FCPA scrutiny lasted approximately 5.5 years.

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Panasonic Corp. And Related Entity Resolve $280 Million Avionics Industry FCPA Enforcement Action

By on April 30, 2018 in 2018 Enforcement Actions, Airline Industry, Auditing Issues, Books and Records, China, DOJ Enforcement Action, Due Diligence, FCPA Related Charges, Foreign Issuers, Internal Controls, Middle East, Monitor, Panasonic, SEC Enforcement Action, SOX Certification Issues, Third Parties
panasonic

Yesterday, the DOJ and SEC announced (here and here) a parallel Foreign Corrupt Practices Act enforcement action against Japan-based Panasonic Corp.  and a U.S. subsidiary Panasonic Avionics Corp. (PAC).

As stated in the enforcement action, Panasonic was an issuer until April 2013 and again “for a brief period between 2015 and 2016 as a result of a share swap that retriggered Panasonic’s obligation to file its financial statements with the SEC.”

As highlighted in this post, the enforcement action consisted of:

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