When it comes to a poster-child for corrupt organizations, there is very little competition that can eclipse Petrobas, the Brazilian state-owned oil and gas company.  Petrobas has long suffered under a stigma of corruption, and as outlined in its recent settlement actions, the title was well deserved. Petrobas’ corruption was firmly coordinated and entrenched with Brazil’s political corruption.  The pervasive nature of Brazil’s political and...

Stryker Corporation has suffered a second FCPA enforcement action, and will now bear the stigma of FCPA “recidivist.”  In reaching a settlement with the SEC and agreeing to pay a $7.8 million civil penalty, Stryker will now be subject to an SEC-imposed compliance monitor.  (Here). Stryker’s recent set of violations surrounded books and records violations and deficient accounting and compliance controls in India, China and...

Traditionally, businesses were able to prepare for changes in laws and regulations in advance by monitoring legislative and regulatory actions in Washington, D.C. and relevant state capitols.  Agencies would initiate rulemakings and give notice to interested parties of new or changed rules. Congress would consider legislation and it would be subject to some kind of “regular order” or process.   In the “good old days,” businesses...

Karin Sweigart, a senior associate from The Volkov Law Group, joins us for a posting on compliance and recruiting women.  Karin’s profile is located here.  She can be reached at [email protected]. With unemployment near record lows (3.9% according to the Bureau of Labor Statistics) more businesses are struggling to recruit the talent they need in the  market. HR professionals know they need to be more...

The Department of Treasury’s Office of Foreign Asset Control (“OFAC”) recently announced the settlement of the Epsilon enforcement action.  (Here).  This case requires a theme song and there is none better than Truckin (here) from Grateful Dead’s second compilation album — What a Long Strange Trip its Been. This case involved two separate OFAC investigations for violations of the Iran Sanctions Program, an appeal to...

Matt Stankiewicz, a senior associate at The Volkov Law Group, rejoins us for another posting on cryptocurrency.  He can be reached at [email protected]. As we have continued with our cryptocurrency posts, we are often asked questions about the foundational elements of the technology behind cryptocurrency.  This is not surprising really, it’s a new technology that’s still finding itself and innovations are occurring monthly, if not...

His money is twice tainted: taint yours and taint mine – Mark Twain In a number of enforcement contexts, I am always struck by a common theme – crooks are able to obtain access to corporate money for improper purposes.  You never hear about a crook who uses his own money to pay bribes or secure any illegal advantage. Companies have to maintain vigilant financial...

When you read through the United Technologies SEC FCPA enforcement action, you cannot help but shake your head – the level of abuse and participation by senior managers in the UT companies – Pratt & Whitney and Otis Elevator is disturbing. As outlined in the SEC settlement, from 2009 to 2015, Pratt & Whitney and Otis Elevator improperly provided trips and gifts to various foreign...

The SEC’s FCPA Unit had a good week last week – they announced a second FCPA settlement along with the Sanofi case.  The latest to fall was United Technologies that agreed to pay $13.9 million for bribes paid by its elevator and aircraft engine businesses. The SEC FCPA settlement focused on Azerbaijan and China relating to third-party bribery payments.  In addition to these two bribery...

Well, add another pharmaceutical company to the FCPA healthcare “sweep.”  Frankly, the term “sweep” makes it sound like a coordinated enforcement effort – instead, it is more accurate to think of it as multiple prosecutions against a high-risk industry. Whatever the enforcement background, Sanofi settled an FCPA case with the SEC for $25 million.  DOJ closed its investigation of Sanofi in March 2018.  The SEC...