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Microsoft Resolves Long-Standing FCPA Scrutiny By Agreeing To Pay $25.3 Million

By on July 23, 2019 in 2019 Enforcement Actions, DOJ Enforcement Action, Hungary, Margins, Microsoft, Saudi Arabia, SEC Enforcement Action, Technology Industry, Thailand, Turkey
microsft

Microsoft has been under Foreign Corrupt Practices Act scrutiny since early 2013 (see here for the prior post). Yesterday, the DOJ and SEC announced here and here an aggregate $25.3 million enforcement action against the company and a Hungarian subsidiary concerning conduct in Hungary, Saudi Arabia, Thailand and Turkey.

The enforcement action involved a DOJ component involving a non-prosecution agreement involving MS Hungary in which the entity agreed to pay a $8.8 million criminal penalty and an SEC administrative order against Microsoft finding violations of the FCPA’s books and records and internal controls provisions in which the company agreed, without admitting or denying the SEC’s findings, to pay disgorgement and prejudgment interest of approximately $16.5 million.

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United Technologies Corp. Resolves $13.9 Million Enforcement Action

By on September 13, 2018 in 2018 Enforcement Actions, Aviation Industry, Azerbaijan, Building Systems, China, Distributor Issues, Gifts, Indonesia, Internal Controls, International Aero Engines, Joint Venture, Kuwait, Otis Elevator, Pakistan, Pratt & Whitney, Russia, SEC Enforcement Action, South Korea, Thailand, Third Parties, Travel and Entertainment, United Technologies
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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Across The Pond, Rolls-Royce Also Resolves A $625 Million U.K. Enforcement Action

By on January 30, 2017 in 2017 Enforcement Actions, Bidding Issues, China, Due Diligence, India, Indonesia, Malaysia, Nigeria, Related Foreign Investigations, Rolls-Royce, Russia, Serious Fraud Office, Statute of Limitations, Thailand, Third Parties, Travel and Entertainment, U.K. Bribery Act
Rolls

This recent post went in-depth into the $170 million Foreign Corrupt Practices Act enforcement action against Rolls-Royce. As mentioned in the post, the FCPA enforcement action against Rolls-Royce was part of a broader $800 million global resolution that also included a U.K. Serious Fraud Office component as well as Brazil law enforcement action.

The approximate $625 million U.K. enforcement action comprised the bulk of $800 million global resolution (that would seem to make sense, Rolls-Royce is after all a U.K. company) and is summarized below including the several failure to prevent bribery counts under the Bribery Act.

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Rolls-Royce Resolves $170 Million FCPA Enforcement Action

By on January 24, 2017 in 2017 Enforcement Actions, Angola, Azerbaijan, Brazil, Foreign Non-Issuer Company, Iraq, Kazakhstan, Oil and Gas Industry, Rolls-Royce, Thailand
Rolls

If you were scoring at home, the last few weeks of the Obama administration were quite active for Foreign Corrupt Practices Act enforcement. But then again this was expected.

First it was the $13 million joke of an enforcement action against Mondelēz International, Inc. on January 9th. Then it was the $30.4 million Biomet became an FCPA repeat offender enforcement action on January 12th. Then it was no U.S. nexus, no problem $30.5 million enforcement action against Sociedad Quimica y Minera de Chile S.A on January 13th. Then it was the DOJ’s announcement (summarized in this post) on January 17th that U.K. based Rolls-Royce plc agreed to pay the U.S. net approximate $170 million (including an unusual component never before seen in FCPA enforcement) to resolve an FCPA enforcement action concerning conduct in Thailand, Brazil, Kazakhstan, Azerbaijan, Angola and Iraq. Then it was $6 million Orthofix Int’l also became an FCPA repeat offender enforcement action on January 18th. Then in the finals hours of the Obama administration it was unusual $7 million enforcement action against Las Vegas Sands (headed by major Republican donor Sheldon Adelson who was front and center at Trump’s inauguration) based on the same core conduct as the SEC’s enforcement action against the company nine months earlier.  Individual FCPA enforcement actions (here and here) were sprinkled in as well.

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In-Depth – General Cable Resolves $75.8 Million FCPA Enforcement Action, Former Senior VP Also Resolves SEC Action

By on December 29, 2016 in 2016 Enforcement Actions, Angola, Anything of Value, Bangladesh, China, Distributor Issues, DOJ Enforcement Action, Egypt, General Cable Corp., Individual Enforcement Action, Indonesia, Karl Zimmer, Non-Prosecution Agreement, SEC Enforcement Action, Thailand, Third Parties, Voluntary Disclosure
generalcable

Don’t yet close the books on 2016 Foreign Corrupt Practices Act enforcement.

Yesterday, the DOJ and SEC announced (here and here) an FCPA (and related) enforcement action against Kentucky-based General Cable Corporation (a manufacturer and distributor of cable and wire). The conduct at issue occurred in Angola, Bangladesh, Indonesia, Thailand, China, and Egypt.

The $75.8 million enforcement action involved a DOJ non-prosecution agreement in which the company agreed to pay an approximate $20.5 million penalty and an SEC administrative cease and desist order in which the company agreed to pay approximately $55.3 million in disgorgement and prejudgment interest.

In addition, the SEC also announced that Karl Zimmer, General Cable’s former Senior Vice President responsible for sales in Angola, agreed to pay a $20,000 civil penalty without admitting or denying the SEC’s findings that he knowingly circumvented internal accounting controls and caused FCPA violations when he approved certain improper payments.

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