Beam Suntory, a global producer and distributor of distilled beverages, settled its FCPA case with DOJ for $19.5 million for bribes paid in India.
The DOJ settlement follows an SEC FCPA settlement for $8 million announced...more
11/9/2020
/ Anti-Bribery ,
Books & Records ,
Bribery ,
Compliance ,
Corporate Counsel ,
Corruption ,
Deferred Prosecution Agreements ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
India ,
Internal Controls ,
Sales & Distribution Agreements ,
Securities and Exchange Commission (SEC) ,
White Collar Crimes ,
Wine & Alcohol
The Justice Department finally closed out its investigation of Goldman Sachs’ massive bribery scheme involving Malaysia’s 1MDB fund. The case is now the largest in US FCPA history (based on its payment to DOJ and related US...more
10/26/2020
/ 1MDB ,
Bribery ,
Compliance ,
Corruption ,
Criminal Prosecution ,
Deferred Prosecution Agreements ,
Foreign Corrupt Practices Act (FCPA) ,
Goldman Sachs ,
Malaysia ,
Securities and Exchange Commission (SEC) ,
White Collar Crimes
Shortly before announcing its comprehensive FCPA settlement with DOJ and the SEC, Pilgrim’s Pride agreed with the Justice Department’s Antitrust Division to plead guilty to price-fixing in the chicken processing industry....more
10/26/2020
/ Bribery ,
Cartels ,
Compliance ,
Corruption ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Internal Controls ,
Meat Processing Plants ,
Price-Fixing ,
Securities and Exchange Commission (SEC) ,
White Collar Crimes
J&F Investmentos (“J&F”) FCPA settlement presents a number of important lessons learned. While the bribery scheme was brazen and involved a large amount of money, the techniques and warning signs must have been fairly...more
10/23/2020
/ Bribery ,
C-Suite Executives ,
Compliance ,
Corporate Counsel ,
Corporate Misconduct ,
Corruption ,
Department of Justice (DOJ) ,
Foreign Corrupt Practices Act (FCPA) ,
Securities and Exchange Commission (SEC) ,
Shell Corporations ,
White Collar Crimes
The SEC settled with J&F Investmentos (“J&F”) for approximately $27 million. Unlike the DOJ settlement, the SEC included JBS and Joseley and Wesley Batista in its enforcement action. The factual predicate for the settlement...more
10/21/2020
/ American Depository Receipts (ADRs) ,
Bribery ,
Compliance ,
Corruption ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Internal Controls ,
Meat Processing Plants ,
Securities and Exchange Commission (SEC) ,
White Collar Crimes
J&F Investmentos SA (“J&F), a Brazilian private investment company, plead guilty to FCPA bribery violations in federal court in Brooklyn, New York. As part of the plea agreement, J&F agreed to pay a fine of $256 million and...more
10/20/2020
/ Agribusiness ,
Anti-Corruption ,
Bribery ,
Compliance ,
Corruption ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Private Investment Funds ,
Securities and Exchange Commission (SEC) ,
White Collar Crimes
We all know it when we see it – a recurring fact pattern in which a company enlists a corrupt third party intermediary for one purpose (and one purpose only) – to pay a bribe.
Let me give you a few examples....more
By any measure, the SEC’s whistleblower program has been a success. Since its inception about 10 years ago, the SEC has collected $2.5 billion in financial recoveries based on whistleblower tips. A large portion of this...more
JP Morgan Chase (“JP Morgan”) is not having a positive year when it comes to government enforcement. JP Morgan is at the brink of a multi-billion dollar FCPA settlement for its involvement in the 1MDB corruption scandal in...more
10/6/2020
/ CFTC ,
Compliance ,
Corruption ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Futures ,
JPMorgan Chase ,
Popular ,
Rare Earth Metals ,
Securities and Exchange Commission (SEC) ,
Securities Fraud ,
Spoofing ,
White Collar Crimes
DOJ and the SEC settled concluded its long-pending FCPA investigation of Herbalife Nutrition Ltd (“Herbalife”). Herbalife entered into a 3-year deferred prosecution agreement (“DPA”) with DOJ and an administrative order with...more
DOJ and the SEC settled concluded its long-pending FCPA investigation of Herbalife Nutrition Ltd (“Herbalife”).
...more
9/1/2020
/ Books & Records ,
Bribery ,
Deferred Prosecution Agreements ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Herbalife ,
MOFCOM ,
Securities and Exchange Commission (SEC) ,
Settlement Agreements ,
White Collar Crimes
World Acceptance Corporation (“WAC”), a US-based consumer loan company, agreed to pay the SEC $21.7 million for FCPA violations in Mexico. WAC’s cited violations covered the full gamut of FCPA violations, including bribery...more
World Acceptance Corporation (“WAC”), a US-based consumer loan company, agreed to pay the SEC $21.7 million for FCPA violations in Mexico. WAC’s cited violations covered the full gamut of FCPA violations, including bribery...more
8/11/2020
/ Anti-Corruption ,
Books & Records ,
Bribery ,
Compliance ,
Corporate Counsel ,
Corruption ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Internal Controls ,
Mexico ,
Popular ,
Regulatory Violations ,
Securities and Exchange Commission (SEC) ,
Settlement Agreements ,
White Collar Crimes
Bausch Health agreed to pay the SEC $45 million to settle Valeant Pharmaceuticals (former name) accounting fraud schemes.
Three former executives, former CEO Michael Pearson, CFO Howard Schiller and Controller Tanya Carro...more
FCPA practitioners often debate whether the FCPA is “clear” or “ambiguous.” Like all important issues in life (assuming this is important), the answer really depends on the specific language. Congress’ ability to write...more
Over the last eight years, FCPA litigation has increased. Companies are still avoiding the risks of litigation and losing to the Justice Department and the SEC. Individuals, on the other hand, have clear incentives to...more
In the dead of night, July 2, 2020, DOJ and the SEC issued the Second Edition of its FCPA Guidance.
A comparison of the First and Second Editions was released by Dick Cassin at The FCPA Blog, and is set forth....more
The Alexion Pharmaceutical SEC FCPA enforcement action represents another in the long line of enforcement actions against drug and device companies. The drug and device industries have been – and will continue to be — easy...more
7/10/2020
/ Alexion ,
Anti-Corruption ,
Books & Records ,
Bribery ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Health Care Providers ,
Pharmaceutical Industry ,
Popular ,
Securities and Exchange Commission (SEC) ,
White Collar Crimes
Notwithstanding the pandemic and remote working arrangements, the Securities and Exchange Commission is continuing to bring FCPA enforcement actions....more
In an important case decided in June 2020, the Supreme Court, in Liu et al v. SEC, addressed the SEC’s ability to seek “equitable relief” in civil proceedings.
In 2017, the Supreme Court, in Kokesh v. SEC, ruled that a...more
7/8/2020
/ 15 U.S.C. § 78u(d)(5) ,
Administrative Authority ,
Business Expenses ,
Calculation of Damages ,
Corporate Misconduct ,
Disgorgement ,
Enforcement Actions ,
Equitable Relief ,
Kokesh v SEC ,
Lack of Authority ,
Liu v Securities and Exchange Commission ,
Net Profits ,
Remedies ,
SCOTUS ,
Securities and Exchange Commission (SEC)
Notwithstanding the pandemic and remote working arrangements, the Securities and Exchange Commission is continuing to bring FCPA enforcement actions. In its latest action, the SEC settled with Alexion Pharmaceuticals for $21...more
At the outset, Novartis is “lucky” – the settlement is relatively positive, despite its 2016 SEC enforcement action in China. Given Novartis weak culture of compliance (if anything, a better description may be a culture of...more
7/1/2020
/ Bribery ,
Compliance ,
Corruption ,
Department of Justice (DOJ) ,
Foreign Corrupt Practices Act (FCPA) ,
Internal Controls ,
Life Sciences ,
Novartis ,
Pharmaceutical Industry ,
Popular ,
Prescription Drugs ,
Securities and Exchange Commission (SEC) ,
Senior Managers ,
Settlement ,
White Collar Crimes
Even during this difficult time of the pandemic, economic uncertainty and social unrest, the Justice Department and the SEC have concluded a major FCPA enforcement action....more
Even during this difficult time of the pandemic, economic uncertainty and social unrest, the Justice Department and the SEC have concluded a major FCPA enforcement action.
Novartis and Alcon (which was a Novartis subsidiary...more
Several members of Congress have been implicated in potential insider trading scandals stemming from stock transactions that occurred at the beginning of COVID-19 crisis before the major stock market decline. As reported by...more