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By on December 3, 2018 in Chi Ping Patrick Ho, CHS Inc., Dmitrij Harder, FCPA Sentences, FCPA Trial, FCPA Trials, Laureate Education, Trade Barriers and Distortions
Potpourri

Scrutiny Alerts

CHS Inc., an agricultural cooperative, disclosed:

“In the fourth quarter of fiscal 2018, we contacted the U.S. Department of Justice and SEC to voluntarily self-disclose potential violations of the FCPA in connection with a small number of reimbursements the Company made to Mexican customs agents in the 2014-2015 time period for payments the customs agents made to Mexican customs officials in connection with inspections of grain crossing the U.S.-Mexican border by railcar. We are fully cooperating with the government, including with the assistance of legal counsel, which assistance includes investigating other areas of potential interest to the government. We are unable at this time to predict when our or the government agencies’ review of these matters will be completed or what regulatory or other outcomes may result.”

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A Few Observations On The Anticorruption Chapter Of The United States – Mexico – Canada Agreement

By on October 10, 2018 in Facilitating Payments, Foreign Official, Trade Barriers and Distortions
USMCA

Recently, the Office of the U.S. Trade Representative released the text of the United States – Mexico – Canada agreement (USMCA). The extensive agreement has a specific chapter (chapter 27) titled anticorruption and this post offers a few observations regarding the agreement compared to the Foreign Corrupt Practices Act specifically as it relates to “foreign official” issues and the express facilitation payments exception.

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BellSouth Gets Hung Up In Latin America

By on October 16, 2017 in 1998-2004 Enforcement Actions, BellSouth Corporation, Hiring Family Members of Foreign Officials, Lobbying, Nicaragua, Root Causes, SEC Enforcement Action, Telecommunications Industry, Trade Barriers and Distortions, Venezuela
bellsouth

[This post is part of a periodic series regarding “old” FCPA enforcement actions]

In 2002, the SEC announced the filing of a settled civil complaint against BellSouth Corporation charging the telecommunications company with violations of the FCPA’s books and records and internal controls provisions.

The conduct at issue focused on an indirect subsidiary in Venezuela (and BellSouth’s inability to “reconstruct the circumstances of purpose” of certain payments) and an indirect subsidiary in Nicaragua (which retained the wife of the chairman of a Nicaraguan legislative committee with oversight of telecommunications).

As frequently highlighted on these pages, the root cause of many FCPA enforcement actions are foreign trade barriers and restrictions and in this regard, as the complaint notes, Nicaraguan law prohibited foreign companies from acquiring a majority interest in Nicaraguan telecommunications companies.”

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The Chiquita Enforcement Action – A Bunch Of Bananas With A Slippery Origin

By on August 18, 2017 in 1998-2004 Enforcement Actions, Agriculture Industry, Books and Records, Chiquita Brands, Colombia, Internal Controls, Permits / Licenses / Customs / Tax, SEC Enforcement Action, Trade Barriers and Distortions
chiquita

[This post is part of a periodic series regarding “old” FCPA enforcement actions]

If you think strict liability enforcement of the FCPA books and records and internal controls provisions is a recent invention, think again.

If you think off-the-rails FCPA enforcement (that is enforcement theories seemingly in conflict with actual legal authority) is a recent invention, think again.

A dubious FCPA enforcement action occurred in 2001 when the SEC announced this administrative cease and desist order finding that Chiquita Brands International Inc. violated the books and records and internal controls provisions of the Foreign Corrupt Practices Act.

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A Focus On Angola

By on August 10, 2017 in Angola, Trade Barriers and Distortions
Angola

Angola is probably not a country that tops most people’s list of the location of Foreign Corrupt Practices Act enforcement actions.

Yet, Angola is the second largest oil producing country in Africa. This means that oil and gas and related service companies are doing business in Angola. Add in the fact that control of the oil industry is overseen by Sonangol (a state-owned / state-controlled enterprise) and throw in some trade barriers and distortions, such as local content requirements, and you have the right conditions for FCPA issues to arise.

And arise they have. As highlighted in this post, the recent FCPA enforcement action against Halliburton was the 11th FCPA enforcement action involving, in whole or in part, conduct in Angola. (10 of the 11 actions have occurred since 2007).

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