Top Menu

What You Need To Know From Q1


This post provides a summary of Foreign Corrupt Practices Act enforcement activity and related developments from the first quarter of 2022.

DOJ Enforcement (Corporate)

The DOJ brought one corporate enforcement action in the first quarter.

 JLT (March 18th)

See here for the prior post.

Charges: None. Declination with Disgorgement letter references violations of the FCPA’s anti-bribery provisions.

Resolution Vehicle: Declination with Disgorgement.

Guidelines Range: Not specified.

Settlement: Approximately $29 million. (As stated by the DOJ: “The Department agrees to credit the Disgorgement Amount against the amount JLT pays to the U.K. Serious Fraud Office (“SFO”), up to 100 percent of the Disgorgement Amount, so long as JLT pays the Disgorgement Amount to the SFO pursuant to the Company’s separate resolution with the SFO that addresses the same underlying conduct.”).

Origin: Voluntary disclosure.

Monitor: No

Individuals Charged: No

DOJ Enforcement (Individual)

The DOJ announced criminal charges against Charles Hunter Hobson (a former executive of Corsa Coal) in connection with an alleged Egypt bribery scheme. (See here). The allegations concern the same core conduct as the 2021 enforcement action against another former Corsa Coal executive.

SEC Enforcement (Corporate)

The SEC brought one corporate FCPA enforcement action in the first quarter. SEC recovery in this action was $6.3 million.

KT Corp. (Feb. 17th)

See here and here for prior posts.

Charges:  None (administrative order findings violations of the FCPA’s books and records and internal controls provisions)

Settlement: $6.3 million

Origin: Related foreign law enforcement action

Individuals Charged: No

Related DOJ Enforcement Action: No.

SEC Enforcement (Individual)

The SEC did not bring any individual FCPA enforcement actions in the first quarter.

Other Developments or Items of Interest

As highlighted in this post, the DOJ released an opinion procedure release that read like a Hollywood script.

On Capitol Hill, a China-focused FCPA reform bill was introduced (see here). However, this post argues that the FCPA is not the place for country specific foreign policy.

In connection with separate civil lawsuits filed by the Mexican Social Security Institute in the aftermath of FCPA enforcement actions, the Seventh Circuit held that the United Nations Convention Against Corruption “is not binding federal law” (see here) and the Sixth Circuit concluded that “just because the U.N. Convention requires that American courts be available to foreign plaintiffs in corruption cases does not mean “that foreign states win in our courts no matter the merits of their arguments.” (see here).

FCPA Institute - Zoom (May 16-18, 2023)

Elevate your FCPA knowledge and practical skills. Nine hours of integrated and cohesive instruction led by Professor Koehler (an FCPA expert with teaching experience). Learn more, spend less. Professional credential available.

Learn More and Register

Powered by WordPress. Designed by WooThemes