Last week the SEC settled charges against Layne Christensen for various violations of the FCPA. While a relatively unremarkable case at first glance, the SEC’s charges against Layne Christensen reflect a troubling approach by enforcement agencies to disregard the “business nexus element” of the FCPA’s anti-bribery provisions. These recent practices appear to contradict the Fifth Circuit’s opinion in United States v. Kay and create greater uncertainty as to the scope of the statute.

SEC Settlement with Layne Christenson Raises New Questions on the Government’s Understanding of the Business Nexus Element of the FCPA -

On October 27, 2014, the Securities Exchange Commission settled charges against Layne Christensen Company, the Texas based global water management, construction, and drilling company, for violations of the US Foreign Corrupt Practices Act. In particular, the SEC accused Layne Christensen of bribing officials in several African countries in exchange for the reduction of tax liability and customs duties resulting in “benefits of approximately $3.9 million.” In settling the SEC’s charges, Layne Christensen agreed to pay over $5 million in sanctions.