Bloomberg Law’s White Collar Crime Report recently published my article “JPMorgan – A Trifecta of Off-The-Rails FCPA Enforcement.” The article can be downloaded here and below is the abstract.
The Foreign Corrupt Practices Act has specific elements that must be met in order for there to be a violation. However, with increasing frequency it appears that the Department of Justice and Securities and Exchange Commission have transformed FCPA enforcement into a free-for-all corporate ethics statute in which any conduct the enforcement agencies find objectionable is fair game to extract a multi-million dollar settlement from a risk-averse corporation.
A recent example is the $202.6 million FCPA enforcement action against JPMorgan Chase & Co. (see here and here for prior posts) based on alleged improper hiring and internship practices in the Asia-Pacific region. After discussing the main features of the problematic enforcement action, this article highlights why the SEC’s enforcement action finding violations of the FCPA’s anti-bribery, books and records and internal controls provisions represents a trifecta of off-the-rails FCPA enforcement and why anyone who values the rule of law should be alarmed.
Go read the article and decide for yourself.