This post provides a summary of Foreign Corrupt Practices Act enforcement activity and related developments from the second quarter of 2022. (See here for the first quarter of 2022).
DOJ Enforcement (Corporate)
The DOJ brought two corporate enforcement actions in the second quarter. Net settlement amounts in these enforcement actions was approximately $478 million.
Glencore (May 24th)
See here and here for prior posts.
Charges: Conspiracy to violate the anti-bribery provisions.
Resolution Vehicle: Criminal information charges resolved through a plea agreement.
Guidelines Range: $504 million to $1.008 billion
Settlement: Net $443 million (after credits for related foreign law enforcement settlements).
Origin: DOJ subpoena.
Monitor: Yes
Individuals Charged: Yes
Stericycle (April 20th)
See here and here for prior posts.
Charges: Conspiracy to violate the anti-bribery provisions and the books and records provision.
Resolution Vehicle: Criminal information resolved through a deferred prosecution agreement.
Guidelines Range: $70 – $140 million
Settlement: Net $35 million (after credit for related foreign law enforcement settlement).
Origin: SEC subpoena / DOJ inquiry
Monitor: Yes
Individuals Charged: No
DOJ Enforcement (Individual)
The DOJ did not announce any individual FCPA enforcement actions in the second quarter.
SEC Enforcement (Corporate)
The SEC brought two corporate FCPA enforcement actions in the second quarter. Net settlement amounts in these actions was approximately $102 million.
Tenaris (June 2nd)
See here and here for prior posts.
Charges: None (administrative order findings violations of the anti-bribery, books and records, and internal controls provisions)
Settlement: $78.1 million
Origin: Voluntary disclosure
Individuals Charged: No
Related DOJ Enforcement Action: No
Stericycle (April 20th)
See here and here for prior posts.
Charges: None (administrative order findings violations of the anti-bribery, books and records, and internal controls provisions)
Settlement: $24 million (after offsets for a related foreign law enforcement settlement)
Origin: SEC subpoena / DOJ inquiry
Individuals Charged: No
Related DOJ Enforcement Action: Yes
SEC Enforcement (Individual)
The SEC did not bring any individual FCPA enforcement actions in the second quarter.
Other Developments or Items of Interest
As highlighted here, in what can only be described as a debacle, the DOJ dropped its FCPA enforcement actions against Joseph Baptiste and Roger Boncy.
As highlighted here, four former Ericsson executives were acquitted in Sweden regarding the same core conduct involved, in part, in the 2019 FCPA enforcement action against Ericsson. One of the defendants acquitted was Afework “Affe” Bereket who has been criminally charged by the DOJ based on the same core conduct.
This post discusses the SEC’s new apparent certification language in FCPA enforcement actions and this post discusses the DOJ’s new apparent certification language.
As highlighted here, the 5th Circuit held that an SEC FCPA enforcement approach is unconstitutional.
As discussed here, Roger Ng (a former managing director at Goldman Sachs) was convicted at trial of FCPA and related offenses for paying bribes to various Malaysian and Abu Dhabi officials in connection with 1Malaysia Development Berhad (1MDB), Malaysia’s state-owned and state-controlled investment development company. This post highlights how the judge in the case broadly interpreted the FCPA’s internal controls provisions and concluded that “circumvention” does not depend on the falsification of a book or record.
