Last week, the Securities and Exchange Commission (“SEC”) filed charges against Asante Berko, a former Goldman Sachs executive with bribery of foreign government officials in Ghana. Goldman Sachs discovered and stopped the...more
Despite the COVID-19 pandemic, the SEC entered into a settlement with Eni for $24.5 million for FCPA violations. In another matter, the SEC filed an FCPA case against a former Goldman Sachs executive for bribery in...more
Cardinal Health (“Cardinal”) agreed to pay the SEC $8.8 million for FCPA violations in China relating to its internal controls and books and records. Cardinal acknowledged facts relating to internal controls deficiencies and...more
3/4/2020
/ Books & Records ,
Cardinal Health ,
China ,
Civil Monetary Penalty ,
Corruption ,
Disgorgement ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Internal Controls ,
Marketing ,
Pharmaceutical Distribution ,
Pharmaceutical Industry ,
Securities and Exchange Commission (SEC) ,
Subsidiaries ,
White Collar Crimes
While DOJ had its biggest year in FCPA enforcement, OFAC quietly had a record year in enforcement. OFAC collected approximately $1.28 billion (yes, with a B) in 26 separate enforcement actions. That is quite an increase...more
1/21/2020
/ Anti-Corruption ,
Corruption ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Distributors ,
Economic Sanctions ,
Enforcement Actions ,
Export Controls ,
Exports ,
FCPA Corporate Enforcement Policy (CEP) ,
Foreign Corrupt Practices Act (FCPA) ,
Office of Foreign Assets Control (OFAC) ,
Risk Assessment ,
Russia ,
Securities and Exchange Commission (SEC) ,
Self-Reporting ,
Suppliers ,
Supply Chain ,
Third-Party Relationships ,
Third-Party Risk ,
Ukraine
Corporate leaders often talk to the talk when it comes to a Speak Up culture. In theory, many business leaders can articulate their commitment to a Speak Up culture by emphasizing the importance of employees raising...more
1/10/2020
/ Anti-Corruption ,
BP ,
Compliance ,
Corporate Culture ,
Corporate Misconduct ,
Corruption ,
Ethics ,
Internal Reporting ,
Oil & Gas ,
Risk Mitigation ,
Securities and Exchange Commission (SEC) ,
Speak-up Cultures ,
Supervisory Guidance ,
Tone At The Top ,
Whistleblowers ,
White Collar Crimes
It is time to break out the crystal ball for FCPA 2020 Predictions. In preparing for this, I always rely on my past admiration of Carnac the Magnificent....more
1/9/2020
/ 1MDB ,
5G Network ,
Anti-Corruption ,
Brazil ,
China ,
Compliance ,
Corruption ,
Criminal Investigations ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Ericsson ,
FCPA Guidance ,
Foreign Corrupt Practices Act (FCPA) ,
General Electric ,
Goldman Sachs ,
Guilty Pleas ,
Healthcare ,
Malaysia ,
Philips Electronics ,
Securities and Exchange Commission (SEC) ,
Settlement Agreements ,
Settlement Negotiations ,
Siemens ,
Telecommunications ,
Uzbekistan ,
White Collar Crimes
In a record year, there are bound to be numerous interesting enforcement actions and principles. I picked out a few to highlight....more
1/8/2020
/ Anti-Corruption ,
Bribery ,
Cell Phones ,
Compliance ,
Compliance Management Systems ,
Corruption ,
Criminal Investigations ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Ericsson ,
Ethics ,
FCPA Corporate Enforcement Policy (CEP) ,
Foreign Corrupt Practices Act (FCPA) ,
Fresenius ,
Indictments ,
Pharmaceutical Industry ,
Russia ,
Securities and Exchange Commission (SEC) ,
Settlement Agreements ,
Telecommunications ,
Wal-Mart ,
White Collar Crimes ,
Wireless Industry
Happy New Year!!
In the FCPA arena, 2019 was a record year – in enforcement and compliance.
Many continuing trends are becoming more than trends – meaning they are turning into established practices....more
1/7/2020
/ Anti-Corruption ,
Bribery ,
Compliance ,
Compliance Management Systems ,
Corruption ,
Criminal Investigations ,
Criminal Prosecution ,
Declination ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Ericsson ,
Foreign Corrupt Practices Act (FCPA) ,
Fresenius ,
Guilty Pleas ,
Indictments ,
Leniency Programs ,
Microsoft ,
Money Laundering ,
Pharmaceutical Industry ,
Popular ,
Retailers ,
Samsung ,
Securities and Exchange Commission (SEC) ,
Settlement Agreements ,
Settlement Negotiations ,
Telecommunications ,
Transparency ,
Wal-Mart ,
White Collar Crimes ,
Wiretapping
Ericsson’s FCPA settlement is in the books (not the books and records). But it casts a significant shadow across the FCPA landscape. A pervasive and systemic culture of bribery is defined to reflect senior executive...more
12/11/2019
/ Anti-Bribery ,
Books & Records ,
Bribery ,
CEOs ,
China ,
Compliance ,
Corruption ,
Criminal Investigations ,
Criminal Prosecution ,
Deferred Prosecution Agreements ,
Department of Justice (DOJ) ,
Djibouti ,
Enforcement Actions ,
Ericsson ,
Foreign Corrupt Practices Act (FCPA) ,
Government Officials ,
Indonesia ,
Kuwait ,
Meals-Gifts-and Entertainment Rules ,
Securities and Exchange Commission (SEC) ,
Settlement ,
State Contractors ,
Telecommunications ,
Third-Party Relationships ,
Third-Party Risk ,
Vietnam ,
White Collar Crimes
The Sweden-based telecommunications company, Ericsson, agreed to a pay a total of $1 billion (yes, billion with a “B”) for FCPA violations.
Ericsson entered into settlement agreements with DOJ and the SEC. Ericsson agreed...more
12/10/2019
/ Bribery ,
Compliance ,
Corporate Counsel ,
Corruption ,
Criminal Investigations ,
Criminal Prosecution ,
Deferred Prosecution Agreements ,
Department of Justice (DOJ) ,
Egypt ,
Enforcement Actions ,
Ericsson ,
Foreign Corrupt Practices Act (FCPA) ,
Government Officials ,
Guilty Pleas ,
Securities and Exchange Commission (SEC) ,
Subsidiaries ,
Telecommunications ,
White Collar Crimes
The Sweden-based telecommunications company, Ericsson, agreed to a pay a total of $1 billion (yes, billion with a “B”) for FCPA violations.
Ericsson entered into settlement agreements with DOJ and the SEC. Ericsson agreed to...more
12/8/2019
/ Anti-Bribery ,
Books & Records ,
Bribery ,
Corporate Misconduct ,
Corporate Monitoring ,
Criminal Conspiracy ,
Criminal Prosecution ,
Deferred Prosecution Agreements ,
Department of Justice (DOJ) ,
Foreign Corrupt Practices Act (FCPA) ,
Guilty Pleas ,
Internal Controls ,
Securities and Exchange Commission (SEC) ,
Settlement Agreements ,
Statutory Violations ,
Telecommunications
Recently, the Justice Department unsealed an indictment charging Jose Carlos Grubisich, the former CEO of Braskem S.A. with participating in an FCPA conspiracy with Odebrecht S.A. Grubisisch was arrested last Wednesday. ...more
12/6/2019
/ Bribery ,
Construction Project ,
Corruption ,
Criminal Investigations ,
Criminal Penalties ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Disgorgement ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Government Officials ,
Indictments ,
Money Laundering ,
Securities and Exchange Commission (SEC) ,
White Collar Crimes
We all take notice when government employees from enforcement agencies engage in wrongdoing. It is important, however, for credibility that government agencies investigate themselves and prosecute employees for wrongdoing. ...more
11/20/2019
/ Compliance ,
Confidential Information ,
Corruption ,
Employee Misconduct ,
Enforcement Actions ,
Examiners ,
Federal Employees ,
Indictments ,
Obstruction of Justice ,
Securities and Exchange Commission (SEC) ,
Theft ,
White Collar Crimes
Last week, DOJ announced the indictment of two former Herbalife executives in China for participating in a bribery scheme over a ten-year period.
Herbalife, a multi-level marketing company, was not charged and its...more
11/18/2019
/ Bribery ,
Business Licenses ,
China ,
Compliance ,
Corruption ,
Criminal Conspiracy ,
Criminal Investigations ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Destruction of Evidence ,
Dietary Supplements ,
Enforcement Actions ,
Evidence ,
Failure to Comply ,
False Statements ,
Family Members ,
Foreign Corrupt Practices Act (FCPA) ,
Government Officials ,
Herbalife ,
Indictments ,
Internships ,
Investment Fraud ,
Meals-Gifts-and Entertainment Rules ,
MLM Industry ,
MOFCOM ,
Perjury ,
Regulatory Violations ,
Reimbursements ,
Securities and Exchange Commission (SEC) ,
White Collar Crimes
The Justice Department and the SEC have launched criminal and civil accounting fraud investigations against Under Armour. The sportswear maker has been suffering a rapid revenue decline over the last few years....more
11/12/2019
/ Accounting Fraud ,
Books & Records ,
Corporate Culture ,
Corruption ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Fashion Industry ,
Popular ,
Quarterly Report ,
Reputation Management ,
Securities and Exchange Commission (SEC) ,
White Collar Crimes
Westport Fuel Systems, a Canadian clean fuel technology company, and its former CEO, Nancy Gougarty, agreed to settle FCPA charges with the SEC for $4.1 million and $120k, respectively....more
Quad/Graphics, a Wisconsin print and digital marketing company agreed to pay the SEC almost $10 million to settle FCPA charges for foreign bribery violations in Peru and China. ...more
10/2/2019
/ Bribery ,
China ,
Civil Monetary Penalty ,
Compliance ,
Corporate Counsel ,
Corruption ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Internal Investigations ,
Peru ,
Securities and Exchange Commission (SEC) ,
Settlement ,
Sham Transactions ,
White Collar Crimes
Barclays joined the club of global financial institutions settling FCPA violations for hiring of relatives of foreign officials in Asia. Barclays agreed to disgorge $3.8 million and paid prejudgment interest of nearly $1...more
10/1/2019
/ Anti-Bribery ,
Barclays ,
Civil Monetary Penalty ,
Compliance ,
Corporate Counsel ,
Corruption ,
Enforcement Actions ,
Family Members ,
Financial Institutions ,
Financial Services Industry ,
Foreign Corrupt Practices Act (FCPA) ,
Foreign Official ,
Hiring & Firing ,
Internships ,
Securities and Exchange Commission (SEC) ,
Sons And Daughters
In an interesting SEC FCPA settlement action, Sridhar Thiruvengadam, the former COO of Cognizant Technology, agreed to pay a $50K penalty for his role in the bribery scheme involving the payment of $2 million to a government...more
Juniper Networks agreed to pay the SEC $11.7 million to settle FCPA violations for conduct occurring in Russia and China. Under the settlement, Juniper Networks agreed to disgorgement of $4 million, a $6.5 million civil...more
9/6/2019
/ Books & Records ,
Bribery ,
Compliance ,
Corruption ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Government Investigations ,
Meals-Gifts-and Entertainment Rules ,
Regulatory Violations ,
Securities and Exchange Commission (SEC) ,
Settlement Agreements ,
White Collar Crimes
If there ever was a poster-child for reputational damage for a financial institution, Deutsche Bank would be the first and only candidate. Talk about a bank that is in trouble and continues to fall under government scrutiny....more
9/5/2019
/ Compliance ,
Corruption ,
Deutsche Bank ,
Enforcement Actions ,
Family Members ,
Financial Institutions ,
Hiring & Firing ,
Job Referrals ,
Public Officials ,
Securities and Exchange Commission (SEC) ,
Settlement Agreements ,
White Collar Crimes
Microsoft’s bribery and controls violations reflect significant risks facing companies that rely on distributor and reseller networks to sell their products. Companies often enter and operate in emerging markets through...more
7/26/2019
/ Bribery ,
Compliance ,
Corporate Misconduct ,
Corruption ,
Department of Justice (DOJ) ,
Foreign Corrupt Practices Act (FCPA) ,
Microsoft ,
Securities and Exchange Commission (SEC) ,
Technology Sector ,
Third-Party Risk ,
White Collar Crimes
Microsoft finally resolved its FCPA enforcement action with a whimper. Notwithstanding prior suggestions that Microsoft’s investigation uncovered global conduct, Microsoft’s liability focused primarily on Microsoft’s conduct...more
7/25/2019
/ Bribery ,
Compliance ,
Corruption ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Federal Sentencing Guidelines ,
Foreign Corrupt Practices Act (FCPA) ,
Internal Controls ,
Microsoft ,
Non-Prosecution Agreements ,
Regulatory Violations ,
Securities and Exchange Commission (SEC) ,
Technology Sector ,
White Collar Crimes
This is a tough posting – frankly, there are so many lessons learned from the Walmart case that they could fill a book, or an e-book at least. I will focus on some of the big issues....more
6/26/2019
/ Bribery ,
Business Development ,
Compliance ,
Corporate Misconduct ,
Corruption ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Foreign Subsidiaries ,
Internal Controls ,
Retailers ,
Securities and Exchange Commission (SEC) ,
Third-Party Risk ,
Wal-Mart
The Walmart case, from a big picture standpoint, represents a serious warning to all global companies committed to rapid international growth. In the absence of a significant and sustained commitment to compliance, rapid...more
6/25/2019
/ Anti-Corruption ,
Bribery ,
Compliance ,
Corporate Misconduct ,
Corruption ,
Criminal Sanctions ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Foreign Subsidiaries ,
Intermediaries ,
Internal Controls ,
Securities and Exchange Commission (SEC) ,
Third-Party Relationships ,
Wal-Mart