Summer Reading
If you enjoy keeping up with the latest FCPA developments and digesting expert commentary and analysis, then you are sure to have that “kid in the candy store” type feeling with this post.
Summarized (and linked) below are various law firm mid-year or periodic reviews of the FCPA and related topics. For previous posts on what you need from Q1 and Q2 of 2011, see here and here.
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Shearman & Sterling’s always informative “Recent Trends and Patterns in the Enforcement of the Foreign Corrupt Practices Act” (see here) begins as follows. “For years, we and other FCPA practitioners have focused our analysis on statistics and the validity – or lack thereof – of the government’s interpretation and application of the statute. The first half of 2011 provides a welcome relief in terms of actual court decisions, trials, congressional hearings, possible additional industry sweeps, interesting developments in litigation, and new foreign legislation.” Lead author Philip Urofsky (here – a former DOJ FCPA enforcement attorney) always provides an excellent analysis of the enforcement agencies ever expanding territorial jurisdiction theories against non-U.S. companies. In the latest installment, it is noted that JGC of Japan (see here for a prior post) “had no apparent commercial connection with the United States whatsoever” and that in the Tenaris enforcement action (see here for the prior post) “neither agency saw fit to allege any territorial basis for jurisdiction over the foreign bribes …”. As to territorial jurisdiction in general, the Shearman report states that the “U.S. government has long been exploring innovative (some would say aggressive) ways to expand territorial jurisdiction over foreign companies.” As to Judge Leon’s recent decision in the Africa Sting regarding the dd-3 prong of the FCPA (see here for the prior post), the Shearman report states that the ruling may be limited by the facts but ” on the other hand, the court’s ruling may presage a stricter application of the territorial jurisdictional element, perhaps even calling into question the correspondent banking theory, in which the U.S. territorial acts are taken by unwitting and non-culpable third parties without the physical presence of the bribe-payor in the U.S.”
Gibson Dunn’s 2011 Mid-Year FCPA Update (here) similarly begins as follows. ” For years now, we have been documenting the unprecedented surge of anti-corruption enforcement activity by the two regulators charged with enforcing the Foreign Corrupt Practices Act (“FCPA”)–the U.S. Department of Justice (“DOJ”) and Securities and Exchange Commission (“SEC”). As the wave crested, these FCPA enforcers became increasingly aggressive in both their investigative tactics and their expansive interpretations of the statute’s text and jurisdictional reach. Yet even in the face of this onslaught, the trend had been for nearly all defendants to settle these enforcement actions short of litigation, leaving the DOJ and SEC positions largely untested. This year, that is changing.” Gibson Dunn also recently issued its informative 2011 Mid-Year Update on DPAs and NPAs (see here). As noted in the Update, “DOJ and the SEC entered into or received court approval for 17 reported agreements in the first half of 2011.” As set forth in a detailed chart, 8 of the 17 (47%) NPAs or DPAs were used to resolve FCPA enforcement actions. This figure is consistent with the 50% figure Gibson Dunn calculated in 2010 (see here).
Miller & Chevalier recently released its FCPA Summer Review (here). Of note, the review states the following concerning Judge Leon’s dd-3 ruling in the Africa Sting case. “The court’s dismissal of the charge against Patel suggests that jurisdiction is only appropriate under Section 78dd-3 when a non-U.S. citizen or company takes an act in furtherance of an improper payment while physically in the territory of the United States. This position directly conflicts with the DOJ’s broad interpretation of 78dd-3 articulated in its “Lay-Person’s Guide to the FCPA Statute,” which can be viewed as a statement of the DOJ’s enforcement position. The Guide states that “a foreign company or person is now subject to the FCPA if it causes, directly or through agents, an act in furtherance of the corrupt payment to take place within the territory of the United States” [emphasis added]. Thus, according to the DOJ’s interpretation, Section 78dd-3 does not require a physical presence by the non-US national or company, it only requires that the individual or company cause an act in the United States (i.e., a defendant can be subject to jurisdiction under a “cause/effect” theory).”
Covington & Burling’s Anti-Corruption Mid-Year Review (here) covers FCPA developments as well related developments around the globe. As to the U.K. Bribery Act, the review notes, among other things, that the Bribery Act “recognizes – in a
way that the US adherence to the respondeat superior doctrine does not – that robust compliance by companies should insulate the company from criminal liability.”
Paul Hasting Q2 FCPA Report (here) begins as follows – “the second quarter of 2011 was an action packed three months for the Foreign Corrupt Practices Act which included judicial opinions, jury verdicts, and a Congressional hearing” – and it provides an overview of recent FCPA developments.
Last, but certainly not the least, is Dorsey & Whitney’s monthly Corruption Digest (see here for the most recent issue). Like prior issues of the Corruption Digest, the July issue provides, among other things, a useful and informative update on non-U.S. bribery and corruption enforcement actions, investigations, and developments.
What You Need To Know From Q2
This post provides a summary of FCPA enforcement actions and FCPA related events from the second quarter of 2011. For a similar post regarding the first quarter of 2011 – see here.
As to enforcement actions, this post covers DOJ and SEC enforcement separately and only covers enforcement actions initiated and resolved during the second quarter of 2011. For a summary of other indictments, guilty pleas and sentences during the second quarter see here – the FCPA Blog’s Q2 Enforcement Report.
DOJ Enforcement
The DOJ resolved four FCPA enforcement actions in the second quarter. Total DOJ recovery in these enforcement actions was approximately $245 million. All of the enforcement actions were resolved via non-prosecution agreements (two) or deferred prosecution agreements (two). All of the enforcement actions were based on voluntary disclosures or (in the case of JGC of Japan) disclosure based on a previous foreign law enforcement investigation. No enforcement action has, at present, resulted in any individual prosecutions of company employees.
Year to date, the DOJ has resolved six FCPA enforcement actions. Total DOJ recovery year to date has been approximately $257 million. All of the enforcement actions have been resolved via non-prosecution agreements (two) or deferred prosecution agreements (four). All of the enforcement actions have been based on voluntary disclosures or (in the case of JGC of Japan) disclosure based on a previous foreign law enforcement investigation. No enforcement action has, at present, resulted in any individual prosecutions of company employees.
JGC of Japan (April 6th)
See here for the prior post.
Charges: Conspiracy to violate the FCPA’s anti-bribery provisions and aiding and abetting FCPA anti-bribery violations.
Resolution Vehicle: Criminal charges resolved through a deferred-prosecution agreement – term two years.
Guidelines Range: $312.6 million to $625.2 million
Penalty: $218.8 million (30% below the minimum amount suggested by the guidelines).
Disclosure: Yes, based on a previous foreign law enforcement investigation.
Monitor: Yes.
Individuals Charged: No.
Comverse Technology (April 7th)
See here for the prior post.
Charges: None – although the non-prosecution agreement refers to a “knowing violation of the books and records provisions of the FCPA.”
Resolution Vehicle: non-prosecution agreement – term two years.
Guidelines Range: Not set forth in the NPA.
Penalty: $1.2 million.
Disclosure: Yes, voluntary disclosure.
Monitor: No.
Individuals Charged: No.
Johnson & Johnson (April 8th)
See here for the prior post.
Charges: FCPA anti-bribery violations and conspiracy to violate the FCPA’s anti-bribery and books and record provisions.
Resolution Vehicle: Criminal information resolved through a deferred prosecution agreement (three year term).
Guidelines Range: $28.5 million to $57 million.
Penalty: $21.4 million (25% below the minimum amount suggested by the guidelines).
Disclosure: Yes, voluntary disclosure (however Iraq Oil for Food conduct was not voluntarily disclosed).
Monitor: No.
Individuals Charged: None by U.S. authorities (Robert Dougall (a former DePuy executive) previously plead guilty to a U.K. SFO enforcement action – see here).
Tenaris (May 17th)
See here for the prior post.
Charges: None, although the non-prosecution agreement refers to “knowing violations of the FCPA’s anti-bribery and books and records provisions.”
Resolution Vehicle: NPA – term two years.
Guidelines Range: Not set forth in the NPA.
Penalty: $3.5 million.
Disclosure: Yes, voluntary disclosure.
Monitor: No.
Individuals Charged: No.
SEC Enforcement
The SEC resolved four FCPA enforcement actions in the second quarter. Total recovery in these enforcement actions was $58.3 million. Of the $58.3 million, $57.9 million (99%) has been disgorgement and prejudgment interest. All of the enforcement actions were based on voluntary disclosures.
Year to date, the SEC has resolved nine FCPA enforcement actions. Total recovery year to date has been $76.3 million. Of the $76.3 million, $73.8 million (97%) has been disgorgement and prejudgment interest. All of the corporate enforcement actions have been based on voluntary disclosures (one of the SEC’s enforcement actions was against an individual – David Turner – see here).
Comverse Technologies (April 7th)
See here for the prior post.
Charges: Settled civil complaint charging FCPA books and records and internal control violations.
Settlement: Approximately $1.6 million (approximately $1.2 million in disgorgement and approximately $360,000 in prejudgment interest)
Disclosure: Yes, voluntary disclosure.
Individuals Charged: No.
Related DOJ Enforcement Action: Yes.
Johnson & Johnson (April 8th)
See here for the prior post.
Charges: Settled civil complaint charging FCPA anti-bribery violations and FCPA books and records and internal controls violations.
Settlement: Approximately $48.6 million (approximately $38.2 million in disgorgement and $10.4 million in prejudgment interest).
Disclosure: Yes, voluntary disclosure (however the Iraq Oil for Food conduct was not voluntarily disclosed).
Related DOJ Enforcement Action. Yes.
Rockwell Automation (April 7th)
See here for the prior post.
Charges: None. SEC administrative cease and desist order finding violations of the FCPA’s books and records and internal control provisions.
Settlement: Approximately $2.7 million (approximately $1.7 million in disgorgement; approximately $590,000 in prejudgment interest; and a $400,000 civil penalty).
Disclosure: Yes, voluntary disclosure.
Individuals Charged: No.
Related DOJ Enforcement Action: No.
Tenaris (May. 17th)
See here for the prior post.
Charges: None – resolved via a deferred prosecution agreement – term two years.
Settlement: $5.4 million in disgorgement and prejudgment interest.
Disclosure: Yes, voluntary disclosure.
Individuals Charged: No.
Related DOJ Enforcement Action: Yes.
Other Events
“Foreign Official” Challenges and Related Developments
On April 20th, Judge Matz (C.D. of Calif.) issued a written decision in the Lindsey “foreign official” challenge. See here for the prior post. Judge Matz denied the challenge “because a state-owned corporation having the attributes of CFE [the Mexican utility at issue] may be an ‘instrumentality’ of a foreign government within the meaning of the FCPA, and officers of such a state-owned corporation … may therefore be ‘foreign officials’ within the meaning of the FCPA.” Judge Matz identified the following “non-exclusive list” of “various characteristics of government agencies and departments” that fall within the description of instrumentality: (i) the entity provides a service to the citizens – indeed, in many cases to all the inhabitants – of the jurisdiction; (ii) the key officers and directors of the entity are, or are appointed by, government officials; (iii) the entity is financed, at least in large measure, through governmental appropriations or through revenues obtained as a result of government-mandated taxes, licenses, fees or royalties, such as entrance fees to a national park; (iv) the entity is vested with and exercises exclusive or controlling power to administer its designated functions; and (v) the entity is widely perceived and understood to be performing official (i.e., governmental functions). As to the FCPA’s legislative history, Judge Matz stated as follows. “It is unnecessary to base this ruling upon the legislative history of the FCPA, given that the meaning of ‘instrumentality’ under Defendants’ definition of the term clearly encompasses CFE. Nevertheless, Judge Matz stated in dicta as follows. “The Court finds that the legislative history of the FCPA is inconclusive. Although it does not demonstrate that Congress intended to include all state-owned corporations within the ambit of the FCPA, neither does it provide support for Defendants’ insistence that Congress intended to exclude all such corporations from the ambit of the FCPA.”
On May 18th, Judge Selna (also in the C.D. of Calif.) issued a written decision in the Carson “foreign official” challenge. See here for the prior post. Judge Selna concluded that “the question of whether state-owned companies qualify as instrumentalties under the FCPA is a question of fact.” He then stated that “several factors bear on the question of whether a business entity constitutes a government instrumentality” including the following: (i) the foreign state’s characterization of the entity and its employees;
(ii) the foreign state’s degree of control over the entity; (iii) the purpose of the entity’s activities; (iv) the entity’s obligations and privileges under the foreign state’s law, including whether the entity exercises exclusive or controlling power to administer its designated functions; (v) the circumstances surrounding the entity’s creation; and (vi) the foreign state’s extent of ownership of the entity, including the level of financial support by the state (e.g., subsidies, special tax treatment, and loans). Recently (see here), defendants and the DOJ filed dueling “instrumentality” jury instructions in the case. Also relevant in the Carson matter during Q2 was the Travel Act challenge filed by the Defendants (see here for the prior post).
The O’Shea “foreign official” challenge (see here) remains pending in the S.D. of Texas. This challenge involves the same CFE entity at issue in the Lindsey matter.
As to “foreign official” in the Comverse Technology enforcement action, a new “foreign official” limbo low was reached (see here for the prior post). The conduct at issue focused on “individuals connected to” “Hellenic Telecommunications Organization S.A. [“OTE”] – a telecommunications provider controlled and partially owned by the Greek Government” During the time period relevant to the enforcement action, the Greek State owned between 33% – 38% of OTC’s shares.
Lindsey Convictions
On May 10th, after a five week trial in the C.D. of California, a jury returned guilty verdicts against Lindsey Manufacturing and its executives Keith Lindsey and Steven Lee on charges of conspiracy to violate the FCPA and five counts of FCPA violations. See here for the prior post. Contrary to numerous media reports, it was not the first instance of a company putting the DOJ to its burden of proof in an FCPA trial, but it was the first DOJ jury trial victory against a company (see here for the prior post regarding the DOJ’s loss in the Harris Corporation trial). However, as explored in yesterday’s post (here) given what transpired in Judge Matz’s courtroom on June 27th (in connection with defendants’ prosecutorial misconduct motion) and based on his comments during the hearing, it appears that the DOJ’s jury trial conviction may be hanging by a thread.
DD-3 Development
When listing reasons why FCPA enforcement has increased, the 78dd-3 prong of the FCPA’s anti-bribery provisions should be on the list. The FCPA, since its inception in 1977, always applied to “issuers” and “domestic concerns”, but the 1998 amendments added a third prong providing jurisdiction as to “persons other than issuers or domestic concerns.” As to this class of persons, the FCPA provides the following jurisdictional requirement: “while in the territory of the United States, corruptly to make use of the mails or any means or instrumentality of interstate commerce or to do any other act in furtherance of an offer, payment, promise to pay, or authorization of the payment of any money, or offer, gift, promise to give, or authorization of the giving of anything of value …”. (emphasis added). Several recent FCPA enforcement actions have been based on the dd-3 prong of the statute, but the DOJ’s enforcement theories have generally escaped judicial scrutiny. However, in the Africa Sting case, in what is believed to be the first judicial ruling on the jurisdictional prong of the dd-3 prong of the FCPA, Judge Leon granted defendant Pankesh Patel’s Rule 29 acquittal motion at the end of the DOJ’s case as to an FCPA substantive charge premised on his sending a DHL package – containing a purchase agreement in furtherance of the alleged corrupt scheme – from the U.K. to the U.S. See here for the prior post.
House Hearing
On June 14th, Representative James Sensenbrenner (R-WI) chaired a hearing of the House Judiciary Committee, Subcommittee on Crime, Terrorism, and Homeland Security titled “Foreign Corrupt Practices Act.” See here for the prior post. The hearing focused on a wide range of issues and in many ways was similar to FCPA reform hearings in the 1980’s in that a common theme explored during the hearing was whether the current state of FCPA enforcement harms U.S. business. There is clearly a push to introduce FCPA reform legislation and members of both parties appeared receptive (to at least certain) FCPA reform proposals most notably clarifying the FCPA’s definition of “foreign official” / “instrumentality” and exploring an FCPA compliance defense. The DOJ supports neither of these (or other) FCPA reform proposals.
SEC’s First Use Of An Alternative Resolution Vehicle In An FCPA Enforcement Action
On May 17th, the SEC announced the use of an alternative resolution vehicle (a deferred prosecution agreement) for the first time in the Tenaris FCPA enforcement action. See here for the prior post. In recent years, the DOJ’s use of NPAs and DPAs in the FCPA context has increased and various of its enforcement theories as to corporate entities has thus escaped judicial scrutiny. With the SEC’s first use of an alternative resolution vehicle in the FCPA context, the SEC’s enforcement of the FCPA will now be even further removed from judicial scrutiny and resolutions will now more frequently be negotiated over private conference room tables. This is a troubling development. See this prior post for what others are saying.
ICE Victim Claim
If bribery is not a victimless crime, then why do FCPA fines and penalties simply go directly into the U.S. Treasury? Why are there no efforts to identify the victims of FCPA violations and to compensate those victims? Bigger picture, who are the victims when FCPA violations occur?
In May, Instituto Constarricense de Electricidad (“ICE”) of Costa Rica petitioned a Court “for protection of its rights as a victim” of Alcatel-Lucent’s bribey scheme. See here for the prior post. Even though ICE acknowledged that “three disloyal and corrupt Directors and two disloyal and corrupt employees” were the recipients of Alcatel-Lucent’s bribe payments, ICE nevertheless claimed it was a victim because the “corrupt activities” of Alcatel-Lucent caused the company “massive losses” and caused “ICE catastrophic harm.” ICE’s petition was denied by the district court and its claim also received a chilly reception at the 11th Circuit – see here for the prior post. ICE’s petition for victim status was factually difficult from the start and it is not surprising that ICE did not prevail. Yet, the ICE petition did succeed in raising the victim issue and causing those interested in bribery and corruption issues to ponder the valid and legitimate question of victims a bit more closely.
What You Need To Know From Q1
This post provides a summary of enforcement actions, other events, and U.K. developments from the first quarter of 2011.
As to enforcement, this post covers DOJ and SEC enforcement separately. With the exception of the Jeffrey Tesler plea that is noted, this post only covers enforcement actions initiated and resolved during the first quarter of 2011. For a summary of other indictments, guilty pleas and sentences during the first quarter see here – the FCPA Blog’s Q1 Enforcement Report.
DOJ Enforcement
The DOJ resolved two FCPA enforcement actions in the first quarter: Maxwell Technologies and Tyson Foods. Total DOJ recovery in these enforcement actions was $12 million. Both cases resulted from voluntary disclosures and both cases were resolved via deferred prosecution agreements (DPAs). Neither enforcement action has, at present, resulted in any individual prosecutions.
Including the Jeffrey Tesler plea agreement (an enforcement action that began in 2009) in which Tesler agreed to forfeit approximately $149 million (see here), the DOJ’s FCPA enforcement program in the first quarter of 2011 brought in approximately $161 million to the U.S. treasury.
Maxwell Technologies (Jan. 31st)
See here for the prior post.
Charges: FCPA anti-bribery violations and knowingly violating the FCPA’s books and records provisions.
Resolution Vehicle: Criminal information resolved through a DPA (three year term).
Guidelines Range: $10.5 million to $21 million.
Penalty: $8 million (25% below the minimum amount suggested by the guidelines).
Disclosure: Yes, voluntary disclosure.
Monitor: No.
Individuals Charged: No.
Tyson Foods (Feb. 10th)
See here for the prior post.
Charges: Conspiracy to violate the FCPA’s anti-bribery and books and records provisions; FCPA anti-bribery and books and records violations.
Resolution Vehicle: Criminal information resolved through a DPA (two year term).
Guidelines Range: $5.04 to $10.08 million.
Penalty: $4 million (approximately 20% below the minimum amount suggested by the guidelines)
Disclosure: Yes, voluntary disclosure.
Monitor: No.
Individuals Charged: No.
For a similar analysis of 2010 DOJ FCPA enforcement actions, see here.
SEC Enforcement
The SEC resolved five FCPA enforcement actions in the first quarter: Paul Jennings, Maxwell Technologies, Tyson Foods, IBM Corp. and Ball Corp. Total recovery in these enforcement actions was approximately $18 million.
As with DOJ FCPA enforcement in the first quarter, all of the SEC’s enforcement actions resulted from disclosures (i.e. voluntary disclosures in the traditional sense, such as the company disclosing the conduct at issue to the enforcement agencies, as well as other forms of public disclosure, such as identification in the U.N. Oil for Food Report, or the result of prior foreign law enforcement agency investigations).
Of the $18 million the SEC recovered thus far in FCPA enforcement actions, approximately $15.9 million (88% has been disgorgement and prejudgment interest).
Paul Jennings (Jan. 24th)
See here for the prior post.
Charges: Settled civil complaint charging FCPA anti-bribery violations; FCPA books and records and internal controls violations; knowingly falsifying books and records; knowingly circumventing internal controls; and signing false certifications required by SOX.
Settlement: Approximately $230,000 (approximately $116,000 in disgorgement, $13,000 in prejudgment interest, and a $100,000 civil penalty).
Disclosure: Yes, the enforcement action was related to the Innospec matter – an enforcement action prompted by the U.N. Oil for Food Report.
Related DOJ Enforcement Action. Yes as to Innospec in 2010.
Maxwell Technologies (Jan. 31st)
See here for the prior post.
Charges: Settled civil complaint charging: FCPA anti-bribery, books and records and internal controls violations; and Section 13 disclosure violations.
Settlement: Approximately $6.3 million (approximately $5.6 million in disgorgement and $700,000 in prejudgment interest)
Disclosure: Yes, voluntary disclosure.
Individuals Charged: No.
Related DOJ Enforcement Action: Yes.
Tyson Foods (Feb. 10th)
See here for the prior post.
Charges: Settled civil complaint charging FCPA anti-bribery violations and books and records and internal control violations.
Settlement: $1.2 million in disgorgement and prejudgment interest.
Disclosure: Yes, voluntary disclosure.
Individuals Charged: No.
Related DOJ Enforcement Action: Yes.
IBM Corporation (March 18th)
See here for the prior post.
Charges: Settled civil complaint charging FCPA books and records and internal controls violations.
Settlement: $10 million ($5.3 million in disgorgement, $2.7 million in prejudgment interest, and a $2 million civil penalty).
Disclosure: Yes, the action is reportedly the result of a prior South Korean government investigation.
Individuals Charged: No.
Related DOJ Enforcement Action: No.
Ball Corporation (March 24th)
See here for the prior post.
Charges: Administrative cease and desist proceeding finding FCPA books and records and internal controls violations.
Settlement: $300,000 penalty.
Disclosure: Yes, voluntary disclosure.
Individuals Charged: No.
Related DOJ Enforcement Action: No.
For a similar analysis of 2010 SEC FCPA enforcement actions, see here.
Other Events
“Foreign Official” Challenges
A significant event from the past quarter was the historic “foreign official” challenge in U.S. v. Carson (see here). This challenge in the C.D. of California, utilizing a detailed and complete overview of the FCPA’s extensive legislative history on the “foreign official” element, asks the court to rule on the DOJ’s interpretation that employees of alleged state-owned or state-controlled enterprises are “foreign officials” under the FCPA. DOJ will soon be filing its response brief in the case and further developments are likely to occur in the second quarter.
The Carson challenge sparked two other challenges to the DOJ’s “foreign official” interpretation in the Lindsey and O’Shea matters – two prosecutions both focused on alleged improper payments to employees of a Mexican entity – Comisión Federal de Electricidad (CFE), an alleged state-owned utility company. Although filed after the Carson challenge, both challenges are further along than the Carson challenge.
The Lindsey matter was fully briefed (see here for the prior post including links to the briefing) and on April 1st U.S. District Court Judge Howard Matz issued an oral ruling denying the defendants’ challenge. (See here for the prior post). It is expected that Judge Matz will author a written decision in the near future.
In the O’Shea matter, the DOJ has filed its opposition brief. (See here for the prior post).
Prosecutorial Common Law
This past quarter had one of the best guest posts contributed to this site (see here) by Michael Levy, co-chair of the White Collar Investigations and Enforcement Group at Bingham McCutchen. Levy, a former Assistant United States Attorney in the District of Columbia and law clerk to U.S. Supreme Court Justice Lewis F. Powell Jr., described what he called “prosecutorial common law.”
With the DOJ arguing in its “foreign official” opposition briefs that its position is strengthened by “more than 35 guilty pleas by individuals who have admitted to violating the FCPA by bribing officials of state-owned entities,” Levy’s guest post was indeed timely.
China Law Development
As noted in this prior post, in February, the legislature of the People’s Republic of China (PRC) passed certain amendments to the Criminal Law, one of which is a provision that criminalizes paying bribes to non-PRC government officials and to officials of international public organizations. The prior post contains a analysis of the significant development – the first instance in which PRC law has prohibited PRC nationals and PRC companies from paying bribes to non-PRC government officials.
Global Changes
The first quarter of 2011 witnessed several regime changes or similar events around the world. Will these events lead to FCPA scrutiny, future enforcement actions, or changes in corporate compliance? These issues are explored in prior posts here, here and here.
U.K. Developments
The first quarter of 2011 also witnessed several developments in the United Kingdom.
Certain high-ranking U.K. Serious Fraud Office officials left the agency to join private law firms in what is becoming a vibrant Bribery Act Inc. industry. (See here).
The SFO continued to enforce existing U.K. laws as it prepares to enforce the Bribery Act. (See here for the prior post on the M.K. Kellogg Ltd. enforcement action and Mabey & Johnson sentences).
Finally, and most significantly, in a much anticipated development, the U.K. Ministry of Justice released its long awaited guidance as to the U.K. Bribery Act – a delayed law now set to go live on July 1, 2011. (See here for the prior post which includes links to the relevant guidance material and an analysis by Robert Amaee, a former SFO official).