Foreign Corrupt Practices Act

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Outline of Resource Guide to the U.S. Foreign Corrupt Practices Act (November 14, 2012)

On November 14, 2012, the Department of Justice (“DOJ”) and Securities and Exchange Commission (“SEC”) released A Resource Guide to the Foreign Corrupt Practices Act. In its 10 chapters, the Guide provides an overview of the current state of the FCPA as interpreted by the courts, the DOJ and the SEC.  In addition to setting … Continue Reading

Judge Hands Down Sentences on Former CCI CEO, Sales Director

On November 8, 2012, Judge James Selna (C.D. Cal.) sentenced Stuart Carson, former CEO of Control Components Inc. (“CCI”), and his wife, Hong Rose Carson, the company’s former sales director, for their roles in the company’s violation of the FCPA and Travel Act. In 2009, CCI pleaded guilty to a three-count criminal information that charged … Continue Reading

Oracle Corporation Agrees to Pay $2 Million to Settle Books and Records and Internal Controls Violations of the FCPA

On August 16, 2012, the Securities and Exchange Commission filed a Complaint against Oracle Corporation for alleged FCPA violations stemming from actions by the software giant’s Indian subsidiary, and Oracle has agreed to pay $2 million to settle the matter. According to the SEC’s Complaint (which can be found here), from 2005 to 2007, certain … Continue Reading

Monthly China Anticorruption Update Report– July 2012

The most recent FCPA and anticorruption enforcement developments involving the People’s Republic of China (PRC) are summarized below. Thanks as always to Squire Sanders Shanghai Office for monitoring these enforcement actions. New Law or Regulations State level: (1) Regulations on the Management of Governmental Affairs On July 9, the Chinese Sate Council promulgated the new … Continue Reading

Nordam Group Settles China FCPA Violations

On July 17, 2012, Nordam Group, Inc. (“Nordam”) an aircraft maintenance, repair and overhaul (“MRO”) service provider based in Tulsa, Oklahoma, entered into a three-year non-prosecution agreement (NPA) with the DOJ to resolve violations of the FCPA’s anti-bribery provisions. Conduct According to the NPA, from 1999 until 2008, Nordam, its subsidiaries and affiliates paid bribes … Continue Reading

Orthofix International Resolves FCPA Investigation

Orthofix International N.V. (“Orthofix”) entered into a consent to final judgment with the SEC and a deferred prosecution agreement with the DOJ to resolve FCPA violations by its Mexican subsidiary. Although the DOJ enforcement action involved a criminal information which remains sealed until a plea is entered in open court, the deferred prosecution agreement indicates … Continue Reading

Patrick Joseph, Haiti Teleco Defendant, Sentenced to Prison

On July 6, 2012, Patrick Joseph was sentenced to one year and one day in prison, and ordered to forfeit $955,596.69, for his role in the Haiti Teleco bribery scheme.  Joseph, a former Director General for telecommunications at the Republic of Haiti’s state-owned national telecommunications company, Telecommunications D’Haiti (Haiti Teleco), had been charged with one … Continue Reading

Practical Guidance on How to Conduct FCPA Due Diligence

The Department of Justice and Securities and Exchange Commission have stressed the need for companies to conduct FCPA due diligence before entering into transactions with third parties or buying another company.  The DOJ and SEC have levied stiff fines on companies that have not heeded their advice once violations of the FCPA have been discovered.  … Continue Reading

Former CCI Executive Cops Plea

Paul Cosgrove, the former head of worldwide sales at California-based valve manufacturer Control Components Inc. (CCI) pleaded guilty yesterday to violating the Foreign Corrupt Practices Act (FCPA).  Cosgrove is the fourth of six company executives to plead guilty to violating or conspiring to violate the FCPA. Cosgrove was previously scheduled to stand trial on June … Continue Reading

Biomet, Inc. Resolves FCPA Investigation

Charged by both the SEC and DOJ with violating the FCPA, Indiana-based medical device company Biomet, Inc. (“Biomet”) agreed to pay more than $22 million to settle the charges.  The charges arose from SEC and DOJ’s ongoing global investigation into medical device companies bribing publicly-employed physicians.  Although the company’s common stock is no longer publicly … Continue Reading

U.S. Chamber of Commerce Seeks Guidance Concerning the FCPA

On February 21, 2012 The U.S. Chamber of Commerce Institute for Legal Reform (ILR) sent a letter to the DOJ requesting guidance on “several issues and questions of significant concern to businesses seeking in good faith to comply with the FCPA.”  The ILR raised the following issues: “Instrumentalities”: The ILR sought clarification on what types of … Continue Reading

John Joseph O’Shea Acquitted of All Substantive FCPA Counts

Conduct Following the close of the prosecution’s case on a trial for charges arising under the Foreign Corrupt Practices Act (“FCPA”), John Joseph O’Shea (“O’Shea”) was acquitted of all substantive FCPA counts, with the court (Southern District of Texas) finding that O’Shea’s conduct could be reasonably explained by lawful motives.  O’Shea, a former general manager … Continue Reading

Foreign Corrupt Practices Act Enforcement – 2011 Year In Review

2011 was another banner year for the Foreign Corrupt Practices Act (FCPA), with the U.S. Department of Justice (DOJ) and Securities and Exchange Commission (SEC) initiating 23 and 25 enforcement actions, respectively, and collecting nearly $355 million and $148 million in fines.  Numerous individual defendants were prosecuted under the FCPA, some successfully, and some not … Continue Reading

Magyar Telekom, Deutsche Telekom Settle FCPA-Related Actions

Magyar Telekom Plc and its majority owner Deutsche Telekom AG have agreed to pay a total of approximately $95 million in penalties arising from alleged violations of the anti-bribery and books and records provisions of the Foreign Corrupt Practices Act (“FCPA”) stemming from conduct in Macedonia and Montenegro. Conduct Between 2005 and 2006, former executives … Continue Reading

Aon settles FCPA enforcement actions with DOJ, SEC

Aon Corp., an Illinois-based world leader in risk management, insurance, and reinsurance brokerage services, has entered into a Non-Prosecution Agreement (“NPA”) with the Department of Justice (“DOJ”) and has settled a civil action brought by the Securities and Exchange Commission (“SEC”) stemming from alleged violations of the anti-bribery, books and records, and internal controls provisions … Continue Reading

Second Circuit Confirms Conscious Avoidance Test

On Wednesday, the U.S. Court of Appeals for the Second Circuit upheld Frederic Bourke’s bribery conviction. This decision is the culmination of investigations and court proceedings that began in 2000.  Mr. Bourke, who co-founded handbag maker Dooney & Bourke, was convicted in November 2009 for violations under the FCPA after his business partner Viktor Kozeny … Continue Reading

Federal Judge Reverses Lindsey Manufacturing Convictions, Dismisses Indictments

Back in May, we brought you news of the first Foreign Corrupt Practices Act (“FCPA”) jury verdict rendered against a corporate defendant in the case of Lindsey Manufacturing, Inc. (“Lindsey Manufacturing”), which stood accused of bribing and conspiring to bribe representatives of a state-owned Mexican utility through a third party intermediary. A jury convicted Lindsey … Continue Reading

Haiti Teleco Defendant Receives Record-Breaking Sentence for FCPA Violations

As detailed in a previous blog post, a federal jury convicted Joel Esquinazi and Carlos Rodriguez, two former executives of Terra Telecommunications Corp. (“Terra”), earlier this year on all counts for their roles in a scheme to pay bribes to Haitian government officials at the state-owned Telecommunications D’Haiti S.A.M (Haiti Teleco). Federal District Judge Jose … Continue Reading

Allianz SE to settle SEC charges linked to bribes in Indonesia

Europe’s largest insurance company, Germany-based Allianz SE, apparently is about to limit damages sustained by United States Securities and Exchange Commission (SEC) investigations. The insurer had been under US investigation for its possible involvement in two major bribe cases. The first case began after allegations gave rise to suspicion that Allianz employees were involved in … Continue Reading

Bribery Charges Dismissed Against Former Schnitzer Steel Executive

On October 14, 2011, the DOJ dismissed bribery charges against Si Chan Wooh, the former Executive Vice President and head of Schnitzer Steel Industries, Inc.’s (“Schnitzer Steel”) Tacoma, Washington based subsidiary SSI International which oversaw Schnitzer Steel’s South Korean subsidiary, SSI Korea. Back in 2007, Wooh previously entered into a cooperation agreement with the DOJ … Continue Reading

SEC Issues FCPA Cease and Desist Order as to Watts Water Technologies, General Manager of Chinese Subsidiary

The Securities and Exchange Commission (“SEC”) has issued an administrative cease and desist order as to Watts Water Technologies, Inc. (“Watts”), a water valve designer and retailer, and Leesen Chang (“Chang”), former general manager of Watts Valve Changsha Co., a wholly-owned Chinese subsidiary of Watts. Conduct Between 2006 and 2009, Chang, on behalf of Watts’s … Continue Reading

Two Senior Executives Convicted In Haiti Teleco Bribes Case

Following a two week trial, on August 4, 2011, a federal jury convicted Joel Esquenazi and Carlos Rodriguez, former executives of Terra Telecommunications Corp. (“Terra”), on all counts for their roles in a scheme to pay bribes to Haitian government officials at the state-owned Telecommunications D’Haiti S.A.M (Haiti Teleco).  The DOJ’s press release is here. … Continue Reading

Drink to This: Diageo Settles FCPA Administrative Enforcement Action

London-based Diageo, the maker of popular liquor brands such as Johnnie Walker scotch and Smirnoff vodka, has agreed to pay more than $16 million to settle an administrative action brought by the Securities and Exchange Commission (“SEC”) for violations of the books and records and internal control provisions of the FCPA. Conduct From 2003 to … Continue Reading

Armor Holdings settles DOJ, SEC actions

Armor Holdings, Inc., a military, security, and law enforcement equipment manufacturer, has agreed to pay a total of approximately $16 million to settle FCPA enforcement actions brought by the Department of Justice (“DOJ”) and the Securities and Exchange Commission (“SEC”). Conduct From 2001 to 2006, a subsidiary of Armor Holdings paid a third party (the … Continue Reading