Category: General

27 Nov, 2019

DOJ Notches Another Trial Victory — President of Transport Logistics Convicted of FCPA and Wire Fraud Charges

The Justice Department won another FCPA trial. After a three-week trial, Mark Lambert of Mount Airy, Maryland, was found guilty of four counts of violating the FCPA, two counts of wire fraud and one count of conspiracy to violate the FCPA and wire fraud. Lambert is scheduled to be sentenced on March 9, 2020. In 2018, Transport Logistics International, a Maryland company, entered into a...

General

27 Nov, 2019

New BVD White Paper — What you need to know for sanctions compliance

Bureau van Dijk, a Moodys Analytics Company, recently released a new white paper, What you need to know about sanctions compliance. You can download the white paper here. I was pleased to contribute to the white paper and hope you find it helpful.

General

26 Nov, 2019

Review of Samsung’s Bribery Scheme in Brazil (Part II of II)

Samsung’s recent FCPA settlement with the Justice Department capped yet another example of a company involved in bribing Petrobas in Brazil for valuable contracts. The scope of the bribery scheme was focused on a contingent deal involving Samsung’s desire to build a drillship for Chartering Company in Houston, Texas. Beginning in 2007 and continuing until 2013, Samsung conspired with others to violate the FCPA by...

General

25 Nov, 2019

Samsung Agrees to Pay $75 Million to Resolve FCPA Violations (Part I of II)

Samsung Heavy Industries agreed with the Justice Department to pay $75 million to settle FCPA charges. Under a three-year deferred prosecution agreement (DPA), Samsung agreed to filing of a criminal information in the Eastern District of Virginia charging the company with FCPA conspiracy. DPA Copy Here. Over a six-year period, Samsung carried out a bribery scheme to pay millions of dollars to Petrobas in Brazil...

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...

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...