This post provides a summary of Foreign Corrupt Practices Act enforcement activity and related developments from the first quarter of 2018.
DOJ Enforcement (Corporate)
The DOJ brought one corporate FCPA enforcement action in the first quarter. DOJ recovery in this action was $2 million million.
Transport Logistics Int’l (March 13th)
See here for the prior post
Charges: Conspiracy to violate the FCPA’s anti-bribery provisions
Resolution Vehicle: Criminal information resolved through a deferred prosecution agreement
Guidelines Range: $28.5 million to $57 million
Penalty: $21.4 million reduced to $2 million based on inability to pay
Origin: Unclear from the resolution documents
Monitor: No.
Individuals Charged: Yes
DOJ Enforcement (Individual)
The DOJ brought two core individual actions in the first quarter against three individuals.
As highlighted here, in connection with its long-standing Russia nuclear bribery scheme enforcement action (the same core action as the Transport Logistics Int’l enforcement action and prior individual enforcement actions) the DOJ announced criminal charges against Mark Lambert.
As highlighted here, in connection with is long-standing PDVSA bribery scheme enforcement action, the DOJ announced criminal FCPA charges against Luis Carlos De Leon Perez and Nervis Gerardo Villalobos Cardenas.
SEC Enforcement (Corporate)
The SEC brought two corporate FCPA enforcement actions in the first quarter. SEC recovery in these actions was approximately $1.5 million.
Kinross Gold (March 26th)
See here for the prior post
Charges: None. Administrative cease and desist order finding violations of FCPA’s books and records and internal controls provisions.
Settlement: $950,000 civil penalty
Origin: SEC subpoena
Individuals Charged: No
Related DOJ Enforcement Action: No
Elbit Imaging (March 9th)
See here for the prior post
Charges: None. Administrative cease and desist order finding violations of FCPA’s books and records and internal controls provisions.
Settlement: $500,000 civil penalty (an amount reflective of the fact that Elbit is currently winding down its operations).
Origin: Voluntary disclosure
Individuals Charged: No
Related DOJ Enforcement Action: No
SEC Enforcement (Individual)
The SEC did not bring any individual enforcement actions in the first quarter.
Other Developments or Items of Interest
As discussed in this post, the Supreme Court yet again rejected the DOJ’s overly expansive interpretation of a criminal law.
As highlighted in this guest post, a UK court recently decided the first contested prosecution of a corporate for failing to prevent bribery under section 7 of the Bribery Act 2010.
This guest post discusses corruption monitoring in France.
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