Archives: Foreign Corrupt Practices Act

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First Jury Verdict Rendered Against FCPA Corporate Defendant

Last week, corporate defendant Lindsey Manufacturing, Inc. (“Lindsey Manufacturing”) was convicted of violating the Foreign Corrupt Practices Act (FCPA) for allegedly bribing and conspiring to bribe representatives of a state-owned Mexican utility through a third party intermediary. The Department of Justice’s press release on the case can be found here. Conduct The Department of Justice … Continue Reading

Anti-Corruption measures in Decree Initiative for Federal Law of Administrative Accountability of Public Officials

As part of the strategy to put an end to corruption in Mexico, and within the scope of the 2007-2012 National Development Plan to strengthen security and the rule of law, President Felipe Calderon sent on March 2, 2011 the decree initiative amending and expanding various provisions of the Federal Law of Administrative Accountability of … Continue Reading

Former CCI Executive Settles with DOJ

Flavio Ricotti, a former executive with Control Components, Inc. (“CCI”), has reached a settlement with the DOJ over charges for conspiring to violate the FCPA and the Travel Act. Conduct In 2009, CCI, a California-based valve company, pled guilty to a three-count criminal information that charged two counts of violating the antibribery provisions of the FCPA … Continue Reading

Rockwell Settles With SEC Over Former Subsidiary’s Role In China Bribe Case

Rockwell Automation, Inc. (“Rockwell”), an industrial automation products and services provider, headquartered in Milwaukee, Wisconsin, resolved an enforcement action in which the SEC alleged it violated the FCPA’s books and records and internal controls provisions through the actions of its former China based subsidiary, Rockwell Automation Power Systems (Shanghai) Ltd. (“RAPS-China”), which was divested by … Continue Reading

Comverse Technologies Inc. and the DOJ and SEC Settle Up

Comverse Technologies Inc. (CTI), a New York based provider of software for communication and billing services, resolved Foreign Corrupt Practices Act (FCPA) enforcement actions brought by the DOJ and SEC arising out of the acts of an indirectly owned overseas subsidiary and the subsidiary’s third party agent.  CTI resolved the DOJ investigation via an NPA, … Continue Reading

Washington, London and Athens Come Calling for Johnson & Johnson

In a sign of things to come, Johnson & Johnson (J&J) and J&J wholly-owned subsidiaries Depuy, Inc. (DePuy) and DePuy International Limited (DePuy International) resolved corruption related investigations on both sides of the Atlantic on Friday, April 8. Conduct  J&J, a New Jersey based issuer, resolved FCPA enforcement actions brought by the DOJ and SEC … Continue Reading

SEC Moves to Require Companies to Report Use of “Conflict Minerals”

Squire Sanders‘ David Spooner, James Barresi, and Frank Placenti write that in April, the Securities and Exchange Commission plans to issue new regulations requiring companies to disclose whether their production utilizes “conflict minerals” from the Congo or an adjoining country. The SEC’s new rules may prove to be a headache for companies that use small … Continue Reading

Ball Corporation Dropped the FCPA Ball and Settled with the SEC

Ball, an Indiana corporation based in Colorado that manufactures metal packaging for household goods, food and beverages, and provides aerospace and technological services, resolved an enforcement action in which the SEC alleged it violated the FCPA’s books and records and internal controls provisions.  Conduct The SEC alleged Ball, through a subsidiary, Formametal, S.A., acquired in … Continue Reading

IBM and the SEC Settle Up

IBM resolved an enforcement action brought by the SEC, which alleged the company violated the FCPA’s books and records and internal controls provisions.  SEC alleged IBM subsidiaries and an IBM join-venture made illicit payments and provided gifts, travel and entertainment to Chinese and South Korean government officials for improper purposes.  IBM did not admit nor … Continue Reading

This is a Collect Call from The Department of Justice

Not too long ago I was clicking through the greatly improved DOJ FCPA webpage when I stumbled onto an enforcement action that had flown under the anticorruption/compliance blogosphere’s radar.  Yes, Manuel Salvoch had escaped the dreaded DOJ press release, but not the Fraud Section’s posting of documents for the world to see.  It was only … Continue Reading

Bonny Island Keeps on Giving (to the US Treasury that is)

On Friday, March 11, Jeffrey Tesler, who had challenged extradition from the UK to the US, relented in his fight and pleaded guilty to one count of conspiracy to violate the FCPA and one substantive violation of an FCPA antibribery provision.  In 2009, the DOJ initially charged Tesler in an 11 count indictment consisting of … Continue Reading

From Russia with Love: Multiplication Table for Bribery Fines

Marina Ushakova, of Squire Sander’s Moscow office, and Ritchie Thomas, of Squire Sander’s Washington, D.C. office, have the following to say about recent anticorruption developments in Russia: Russia is on the threshold of a drastic change in the design of its system of penalties for bribery, both on the supply side and on the demand … Continue Reading

The Bar Speaks Out on the FCPA at the ABA White Collar Conference

In a recent post we analyzed the comments of Charles Duross, Deputy Chief, Fraud Section, Criminal Division, DOJ, at the ABA White Collar Crime annual conference.  Today, we will summarize the comments of Duross’ fellow panelists — Robert Tarun, Mark Mendelsohn and Raphael Monty — all three of whom are in private practice.  Tarun stated: … Continue Reading

“2010 Was a Transformative Year”

With these words Charles Duross, Deputy Chief, Fraud Section, Criminal Division, Department of Justice – the country’s lead criminal prosecutor of FCPA – so began his comments at the recent American Bar Association White Collar Crime annual conference in San Diego, California. Duross characterized 2010 as “transformative” for the following reasons: Fraud Section Changes.  Duross … Continue Reading

The FCPA Green Room: Private Equity May Be Next

To date, the SEC has never charged a private equity firm for the inappropriate conduct of one of its portfolio companies (the DOJ has been involved in a few investigations: see Vetco International Ltd.; Omega Advisors; and, Leo Winston Smith). However, with recent news of both internal and external bribery-related investigations into Allianz Capital Partners … Continue Reading

What to Look for in 2011

Recently, we wrote about the 2010 enforcement environment.  Today’s post looks forward to 2011 and some things to keep an eye out for in the coming year.  Without further ado: Prosecutions of Individuals. In 2010 we saw a significant number of individuals prosecuted for FCPA and related violations.  A number of defendants resolved their prosecutions … Continue Reading

Breaking News: Another Possible FCPA Extradition from the UK.

We had a different post planned for today (one on trends to look for in 2011, which include international cooperation), but the ruling of London appeals court takes priority.  According to Law360, a London appeals court decided Jeffrey Tesler, a UK lawyer charged by the DOJ with paying more than $132 million from a former … Continue Reading

“We Are in a New Era of FCPA Enforcement”

U.S. Department of Justice (DOJ) Criminal Division Assistant Attorney General Lanny Breuer so stated at the American Conference Institute’s 24th National Conference on the Foreign Corrupt Practices Act (FCPA) late last year.  The recent actions of the DOJ and Securities and Exchange Commission (SEC), the FCPA’s dual enforcers, backed up AAG Breuer’s words.  The DOJ … Continue Reading

Mexico arrests 2 Chinese executives for bribery attempt at Pemex

Two executives from a Chinese company were arrested by the Mexican Federal Police working together with the Federal Comptroller and the Attorney General’s office.This is the first time corporate executives are arrested as a result of a claim brought by Public Servants in Mexico. On November 30th 2010, the two Chinese executives delivered $3,000 USD … Continue Reading

Alert: FCPA Translated Into 14 Languages

Perhaps slightly overdue, but better late than never. While English is still the official version, a translation of the FCPA can now be found in the following 14 languages: Arabic Bengali Chinese (Cantonese) Chinese (Mandarin) French German Japanese Javanese Korean Malay Portuguese Russian Spanish Urdu Dick Cassin (FCPA Blog) estimates that 2.8 billion will be … Continue Reading

China Telecoms Sector Compliance Challenges Snag Ericsson?

The week of November 18, Chinese media were reporting that an investigation in corruption charges against executives in  mobile carrier China Mobile has now spread to an executive with Ericsson.  An article from November 25 in another Chinese publication, nfdaily.cn, says that the report first arose in American media, but I’ve not seen reports in US media … Continue Reading

Panalpina’s Hangover After the Russian Corruption Party

Russia’s hosting a great party–everyone’s invited. Who will be able to survive the hangover from Russia’s samogon (moonshine)? U.S.-based Panalpina, Inc. and its parent Panalpina World Transport (Holding) Ltd., a Swiss freight forwarding company with 10 offices across Russia, were charged with FCPA violations that occurred in Russia. The charges were for both conspiring to … Continue Reading
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