This Week On FCPA Professor
June 3, 2023
FCPA Professor has been described as “the Wall Street Journal concerning all things FCPA-related,” and “the most authoritative source for those seeking to understand and apply the FCPA.”
Set forth below are the topics discussed this week on FCPA Professor.
As discussed here, Gartner Inc. (a technological research and consulting company) resolved a $2.5 million FCPA enforcement action concerning conduct in South Africa. This post highlights additional issues to consider from the enforcement action.
Record $279 Million Whistleblower Award Made In Connection With Ericsson FCPA Matter – Even Though The Information Was Provided After The SEC Had Already Opened An Investigation Of The Company
June 2, 2023
According to this recent Wall Street Journal article:
“The record $279 million whistleblower award issued by the Securities and Exchange Commission earlier this month stemmed from a bribery case against telecommunications company Ericsson.” (See here for the prior post about the 2019 enforcement action).
Even though the SEC’s whistleblower award is highly redacted, the few portions that are readable are interesting.
In Response To Bankman-Fried’s Motion To Dismiss, DOJ Says That The FCPA Charges Are Good Enough For Now
June 1, 2023
In December 2022, the Department of Justice announced criminal charges against Samuel Bankman-Fried arising from an “alleged wide-ranging scheme by [him] to misappropriate billions of dollars of customer funds deposited with FTX, the international cryptocurrency exchange [he] founded …, and mislead investors and lenders to FTX and to Alameda Research, the cryptocurrency hedge fund [he] also founded.”
Specifically, Bankman-Friend was charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit commodities fraud, conspiracy to commit securities fraud, conspiracy to commit money laundering, and conspiracy to defraud the Federal Election Commission and commit campaign finance violations.
As highlighted in this prior post, in March 2023 the DOJ filed a superseding indictment adding a Foreign Corrupt Practices Act conspiracy charge to the criminal charges Bankman-Fried is facing.
Issues To Consider From The Gartner Enforcement Action
May 31, 2023
This recent post discussed the approximate $2.5 million FCPA enforcement action against Gartner based on conduct in South Africa – specifically conduct involving the South Africa Revenue Service (“SARS”).
This post highlights additional issues to consider.
Timeline
As stated in Gartner’s most recent annual report (Feb. 16, 2023):
Gartner Resolves $2.5 Million Enforcement Action
May 30, 2023
Late last Friday afternoon on a holiday weekend, the SEC released one of the more pedestrian FCPA enforcement actions of recent memory.
The action involved Gartner Inc. (a technological research and consulting company) concerning conduct in 2014 and 2015 in South Africa.
To resolve the matter, Gartner agreed to pay approximately $2.5 million (856,764 in disgorgement and prejudgment interest and a $1.6 million civil penalty).
In summary fashion, this administrative order states: