Tag Archives: FCPA

Canada Outlaws Facilitation Payments

Facilitation payments are no longer exempt under Canada’s Corruption of Foreign Public Officials Act.  On October 30, 2017, Global Affairs Canada, which manages diplomatic relations and promotes international trade, announced the end of the exemption.  This change was initiated in 2013 but delayed to give companies time to adjust their policies and procedures.  Effective October … Continue Reading

SEC Staying the Course on FCPA Enforcement

In remarks at NYU’s Program on Corporate Compliance and Enforcement, Steven Peikin, the new Co-Director of the SEC’s Enforcement Division, voiced a question that has been on the minds of many anticorruption practitioners and compliance professionals: Will the SEC continue to be committed to robust FCPA enforcement?”   “My answer to that question is simple,” Peikin … Continue Reading

Rosenstein Pledges Reduced Regulation, Encourages Self-Reporting

U.S. Deputy Attorney General Rod Rosenstein pledged an enforcement environment in which businesses can thrive. In keynote remarks at the U.S. Chamber Institute for Legal Reform, he emphasized the Department of Justice’s (DOJ) commitment to “avoiding unnecessary interference in law-abiding enterprises.” Rosenstein also promoted the benefits of corporate compliance and self-reporting. Although allegedly offering “no breaking news” about DOJ policies, … Continue Reading

DOJ’s Criminal Division Launches new FCPA Pilot Program

In an effort to enhance its ability to investigate and prosecute Foreign Corrupt Practices Act (FCPA) cases, the Department of Justice’s (DOJ) Criminal Division has launched a new one-year FCPA pilot program effective April 5, 2016. The program has three main goals: Motivate companies to voluntarily self-disclose FCPA-related misconduct Motivate companies to fully cooperate with … Continue Reading

Monthly China Anticorruption Update Report – January 2013

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. 1.        New law or regulation State level: (1) The Interpretation on Several Issues Concerning the Specific Application of Law in the Trial of Criminal Cases … 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

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

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

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

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

Has the DOJ’s Ship Sailed from Bonny Island?

With the last member of the infamous TSKJ joint-venture resolving FCPA charges this week, has the DOJ finally closed the door on its very lucrative Bonny Island investigation?  JGC, a Japanese company headquartered in Yokohama, Japan, resolved an FCPA enforcement action brought by the DOJ concerning JGC’s participation in the Bonny Island, Nigeria, bribery scheme.  … 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
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