Corruption, Crime & Compliance

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24 Nov, 2019

Episode 117 — FCPA Update: Samsung pays $75 million to settle FCPA charges; Braskem’s former CEO indicted on FCPA charges; and Transport’s co-CEO is convicted on FCPA charges

The Justice Department has been very busy in FCPA enforcement matters — (1) Samsung Heavy Industries paid $75 million to settle FCPA violations; (2) Braskem’s former CEO was indicted on FCPA charges; and (3) after a three-week trial, Transport’s co-CEO was convicted of FCPA charges. In this episode, Michael Volkov catches up on recent FCPA enforcement actions.

General

20 Nov, 2019

SEC Examiner Charged with Stealing Confidential Information and Obstruction of Justice

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. Otherwise, a government agency can lose credibility as an honest broker. The Justice Department recently announced criminal charges against a former SEC examiner who allegedly engaged in wrongdoing when he left the SEC to work at...

General

17 Nov, 2019

DOJ Charges Two Herbalife Executives with Criminal FCPA Violations

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 investigation is ongoing. The criminal; indictment, which was returned in the Southern Dustrict of New York, charges Yangling Li, aka Jerry Li, and Hongwei Yang, aka Mary Yang. Li was the former...

General

14 Nov, 2019

Alstom Executive Convicted on FCPA and Money Laundering Violations

Lawrence Hoskins, a UK citizen and former Alstom executive, was convicted last Friday on 11 of 12 counts for his role in a bribery scheme involving Indonesian officials. Hoskins conviction took years to secure because of jurisdictional challenges and appeals. Hoskins was originally indicted in 2013. Alstom itself settled FCPA charges at the end of 2014 and agree to pay roughly $770 million. Three other...

General

12 Nov, 2019

California AG Issues California Consumer Privacy Act Regulations

Last month, the California Attorney General released draft regulations for the California Consumer Privacy Act (CCPA). (Here). The regulations focus on three primary areas: (1) consumer notices; (2) consumer requests for information and handling of information; and (3) verification requirements. The implementation date for the CCPA is January 1, 2020. The deadline for submission of comments is December 6, 2019. The regulations will not become...

General

11 Nov, 2019

Under Armour Under DOJ and SEC Investigation For Revenue Recognition Scheme

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. The allegations focus on Under Armour’s accounting practices and shifting of sales from quarter to quarter to present a healthier picture of its finances than was actually occurring. Under Armour Culture Problems Over...

Podcasts

10 Nov, 2019

Episode 116 — Alstom Executive Convicted of FCPA and Money Laundering Offenses

Lawrence Hoskins, a UK citizen and former Alstom executive, was convicted last Friday on 11 of 12 counts for his role in a bribery scheme involving Indonesian officials. Hoskins conviction took years to secure because of jurisdictional challenges and appeals. Hoskins was originally indicted in 2013. The jury deliberated for one day – a resounding victory for DOJ prosecutors. Hoskins’ defense team launched an unusual defense, claiming that...

General

6 Nov, 2019

FINRA Fines BNP Paribas $15 Million for Anti-money Laundering Violations

The Financial Industry Regulatory Authority is not known for its aggressive enforcement record. But that may be changing. FINRA recently fined BNP Paribas for $15 million for anti-money laundering deficiencies in the broker-dealer unit’s operations that allowed billions of dollars’ worth of suspicious penny stock and foreign currency transactions. BNP’s senior management failed to respond to repeated warnings from staff that the firm’s minimal AML...

General

5 Nov, 2019

Two Charitable Foundations Pay $6 Million for Anti-Kickback Violations

Two charitable foundations that helped patients pay for drug co-payments settled anti-kickback charges for $6 million. The Patient Access Network Foundation (PANF) agreed to pay $4 million and Good Days agreed to pay $2 million to resolve AKS allegations. The charitable foundations were used as pass throughs for Denderon, Astellas, Amgen and other drug companies to funnel money to Medicare patients taking their drugs. The...

General

4 Nov, 2019

Justice Department Unseals Unaoil Executives’ FCPA Guilty Pleas

The Justice Department announced that three Unaoil executives entered FCPA guilty pleas last year. The three executives cooperated with law enforcement in the investigation and prosecution of other companies and individuals. In March 2018, the former Unaoil CEO, Cyrus Ahsani, and former Unaoil chief operations officer, Saman Ahsani, plead guilty to one count of FCPA conspiracy for paying millions in bribes to foreign officials in...