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...

In light of the evolving (or evolved) DOJ and SEC approach to FCPA enforcement in the merger and acquisition context, global companies have to emphasize their post-acquisition process.  Obviously, this is not limited to ethics and compliance issues.  An acquiring company has a long list of tasks needed to complete in order to integrate the new company into the existing company’s operations. Global companies that...

Several years ago (or in the recent past as some would say), pre-acquisition due diligence was a major compliance focus for global companies that grew through aggressive merger and acquisition strategies.  In some respects, and perhaps in reaction to relaxation of some of DOJ’s strict requirements that applied ten years ago (i.e. Halliburton Opinion Letter 08-02), companies appear to be adjusting their compliance priorities and...

Global companies that grow through a deliberate merger and acquisition strategy continue to face significant anti-corruption risks.  The list of FCPA enforcement actions includes numerous examples of companies that settled FCPA matters because of post-acquisition conduct, which usually reflects inadequate post-acquisition procedures. Despite the obvious risks and the Justice Department’s and SEC’s efforts to afford some flexibility in this area, global companies usually fail to...

I am excited to announce the addition of Noah Smith as a new Associate at The Volkov Law Group. When I launched the firm, I was committed to providing high-quality ethics and compliance, and enforcement defense services. With the help of my existing members we have been fortunate to grow and develop our services and capabilities.  I am proud to announce that Noah Smith will...

Legg Mason can finally close its books on the Gaddafi-era, Libyan bribery scandal.  In June 2018, Legg Mason entered into a non-prosecution agreement with the Justice Department and agreed to pay $32 million for its role in the bribery scheme.  Société Générale entered into a deferred prosecution agreement and paid $585 million for FCPA violations. Société Générale and Legg Mason admitted to paying over $90...

Criminal prosecutors understand the importance of cooperating witness to the criminal justice system.  Cooperating witnesses are vital to the criminal justice system because they are in the unique position of explaining to a jury the operation of a criminal enterprise.  Without insider information, there are numerous criminals and criminal organizations that would never have been dismantled and punished.  As we have seen in the recent...

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...