Category: General

4 Sep, 2018

Court of Appeals Cuts Back Extraterritorial FCPA Jurisdiction Over Foreign Nationals

The Justice Department’s attempt to assert broad jurisdiction over foreign nationals was rebuked in a recent US Court of Appeals decision in United States v. Hoskins. (Here). As a result, the appellate court affirmed the lower court’s decision to dismiss the FCPA conspiracy count against defendant Hoskins, a former Alstom executive. The government will still be able to prosecute Hoskins for substantive FCPA violations based...

General

30 Aug, 2018

DOJ Issues Declination and Disgorgement Under FCPA Corporate Enforcement Policy

In a recently released letter (here), the Justice Department issued a declination to the Insurance Corporation of Barbados Limited (ICBL) for violations of the FCPA under the FCPA Corporate Enforcement Policy. DOJ required ICBL to pay approximately $93,000 in disgorgement. ICBL paid approximately $36,000 in bribes to Donville Innis, a Barbadian government official, in exchange for government contracts worth approximately $686,000 and $93,000 in profits....

General

29 Aug, 2018

OFAC Begins to Re-Impose Iran Sanctions and Expands Reach of Previous Sanctions

The Trump Administration issued a new executive order on August 6, 2018, in order to reimpose the first tranche of the Iran sanctions lifted by the former Joint Comprehensive Plan of Action (“JCPOA”). In doing so, the executive order consolidates relevant sanctions authorities and broadens the scope of the previous restrictions. Companies will now have to comply with a renewed set of secondary sanctions, and...

General

28 Aug, 2018

Fighting Corruption and Obstacles to Criminal Prosecution — (Part II of II)

There is no universal definition of corruption. Frankly, the term can be narrowly defined to focus on bribery or it can be given a wider application, extending to abuse of power. Transparency International defines corruption as “the abuse of entrusted power for private gain.” Frankly, it depends on the official involved and the purpose of an institution. As a broad concept, corruption becomes an ethical...

General

27 Aug, 2018

Defining Corruption: From the Framers to the Supreme Court’s Decision in Citizens United (Part I of II)

One of the more esoteric debates among legal scholars focuses on defining corruption and the political roots of anti-corruption efforts. As it turns out, scholars have pointed to the Framers debate and provisions in the U.S. Constitution to support the idea that in creating the United States government, the Framers were significantly concerned about the pernicious effects of corruption on government. The debate on corruption...

General / Podcasts

26 Aug, 2018

Episode 53 — How to Test and Evaluate Your Compliance Program

An effective compliance program requires that companies review and improve their compliance programs. A company should regularly review and test its controls, and address potential weaknesses in its compliance program. The Justice Department and the SEC have encouraged companies to conduct regular tests and reviews to create a sustainable compliance program. Companies should design and implement a proactive evaluation program to ensure that their compliance...

General

23 Aug, 2018

CFIUS Reform: An Expanded Role (Part II of II)

Congress enacted the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA), which was intended to modernize and strengthen the CFIUS process. FIRRMA was incorporated into the National Defense Authorization Act which as passed and signed into law. FIRRMA expands CFIUS jurisdiction to include four new types of transactions, expands the definition of “critical technology,” requires CFIUS to respond to written notices, extends the time...

General

22 Aug, 2018

CFIUS Review: An Increasing Risk (Part I of II)

Washington, D.C. is more than just the nation’s capital. Companies have to pay attention and develop contacts and relationships in Washington, D.C. given the importance of federal agencies, Congress and of course, the White House. I often inform clients that Washington, D.C. provides a second round of due process for disputes that may occur in domestic or foreign markets. One of the more important institutions...

General

20 Aug, 2018

DOJ Expands FCPA Corporate Enforcement Policy

The Justice Department’s FCPA Corporate Enforcement Policy was announced in November 2017 with much fanfare – it was the culmination of a step-by-step process beginning with the FCPA Pilot Program. The FCPA Corporate Enforcement Policy enshrined the potential benefit of a presumption of a declination if a corporation: (1) voluntarily disclosed the misconduct; (2) implemented timely and appropriate remediation; and (3) fully cooperated with the...

General

19 Aug, 2018

New Episode Everything Compliance: The Five-Year Retrospective Edition

Tom Fox, Matt Kelly, Jonathan Armstrong, Jay Rosen and myself recently recorded a new episode of Everything Compliance — Five-Year Retrospective Edition. You can listen to it here. Everything Compliance is the only roundtable podcast in compliance, with four of the top compliance practitioners around. This week the gang returns to its four focused topics on its Five-Year Retrospective Edition. Matt Kelly considers how did...