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The Origins Of 2023 Corporate Enforcement Actions

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This recent post compared corporate FCPA enforcement actions in 2023 to prior years.

However, before a Foreign Corrupt Practices Act enforcement action is announced, scrutiny must first arise.

This post highlights the origins of the fourteen corporate enforcement actions in 2023. (See here for a similar post highlighting the origins of 2022 corporate enforcement actions; here for 2021; here for 2020; here for 2019, here for 2018, here for 2017, and here for 2016).

In summary, of the fourteen corporate enforcement actions from 2023, eight enforcement actions (57%) originated with a voluntary disclosure.

Rio Tinto

Voluntary disclosure.

Flutter International

Voluntary disclosure.

Corsa Coal

Voluntary disclosure.

Frank’s International

Voluntary disclosure.

Phillips

Unclear. As highlighted in this post, in 2019 media reports suggested that “the U.S. FBI is investigating corporate giants Johnson & Johnson, Siemens AG, General Electric Co and Philips for allegedly paying kickbacks as part of a scheme involving medical equipment sales in Brazil.” The actual enforcement action concerned conduct in Angola.

Gartner

As stated by the SEC – “Gartner’s self disclosure following press reports in South Africa …”.

CorfiColombiana

An extension of the 2016 FCPA enforcement action against Odebrecht which resulted from a foreign law enforcement investigation.

3M

Voluntary disclosure.

Clear Channel

The company previously disclosed: “The Company advised both the United States Securities and Exchange Commission and the United States Department of Justice of the investigation at Clear Media Limited [by Chinese law enforcement], and the Company intends to cooperate with both agencies in connection with any investigation that may be conducted in this matter.”

Albemarle

Voluntary disclosure.

Lifecore

Voluntary disclosure.

Tysers

The company previously disclosed: “AUB is aware that the United Kingdom’s Serious Fraud Office (SFO) has an ongoing investigation into suspicions of bribery and corruption in relation to the conduct of business in Ecuador between 2013 and 2017 by Integro Insurance Brokers Limited, its employees, agents and associated persons, and also into any associated money laundering, and that the U.S. Department of Justice (DOJ) also has an ongoing investigation in relation to this conduct. Integro Insurance Brokers Limited is a company within the Tysers group. AUB understands Tysers was notified by the SFO and DOJ of the investigations in May 2020 and October 2020 respectively and that Tysers has been cooperating with the SFO and DOJ since being notified.”

Likely an extension of prior enforcement actions concerning Ecuador’s Seguros Sucre S.A. (“Seguros Sucre”), an alleged state-owned insurance company and “instrumentality” of the Ecuadorian government. For instance, in 2022 U.K.-based reinsurance broker Jardine Lloyd Thompson Group Holdings Ltd. (JLT) resolved a $29 million FCPA enforcement action (see here for the prior post).

H.W. Wood

Likely an extension of prior enforcement actions concerning Ecuador’s Seguros Sucre S.A. (“Seguros Sucre”), an alleged state-owned insurance company and “instrumentality” of the Ecuadorian government. For instance, in 2022 U.K.-based reinsurance broker Jardine Lloyd Thompson Group Holdings Ltd. (JLT) resolved a $29 million FCPA enforcement action (see here for the prior post).

Freepoint Commodities

An extension of 2023 FCPA (and related) enforcement actions against individuals previously employed or associated with the company. The origins of the individual enforcement actions is unclear.

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