Category: General

Tom Fox and Mike Volkov Discuss the Fresenius Medical FCPA Enforcement Action

Tom Fox and I recently had a chance to discuss the Fresenius Medical FCPA enforcement action. A link to the podcast is here. Fresenius Medical, the largest supplier of dialysis equipment and services, agreed to pay $231 million to the Justice Department and the SEC to resolve FCPA violations in 17 countries in Africa, the Middle East and Europe. Fresenius entered a non-prosecution agreement with...

Episode 84 — A Review of MTS Telesystems FCPA Enforcement Action

In another blockbuster FCPA prosecution, the Justice Department and the SEC announced an $850 million settlement with Mobile Telesystems (“MTS”), Russia’s largest mobile carrier. At the same time, the Justice Department announced criminal indictments against an MTS executive and the notorious corrupt Uzbek official, Gulnara Karimova, on criminal charges. In this episode, Michael Volkov discusses the MTS Telesystems FCPA enforcement action.

Lessons Learned from Fresenius Medical FCPA Settlement (Part III of III)

Fresenius Medical’s FCPA settlement for $231 million demonstrates again the continuing vitality surrounding the FCPA Corporate Enforcement Policy – which provides a carefully constructed framework for encouraging voluntary disclosures and FCPA enforcement.   Fresenius earned a non-prosecution agreement and was not required to enter a deferred prosecution agreement and designate a subsidiary to plead guilty to an FCPA criminal offense.  Additionally, given the geographic breadth of...

Fresenius Medical’s Bribery Conduct Precludes Declination (Part II of III)

Fresenius Medical came close to earning a declination under the FCPA Corporate Enforcement Policy.  Unfortunately, Fresenius’ effort fell short — but it came close.  Fresenius Medical operates more than 3700 dialysis clinics worldwide and has 37 production sites in various countries. Fresenius’ relationship with third-party agents and distributors created significant risks.  These relationships, in a number of high-risk countries, were used to funnel bribery payments. ...

Fresenius Pays $231 Million to Resolve Long-Standing FCPA Enforcement Action (Part I of III)

Fresenius Medical, the largest supplier of dialysis equipment and services agreed to pay $231 million to the Justice Department and the SEC to resolve FCPA violations in 17 countries in Africa, the Middle East and Europe. Fresenius entered a non-prosecution agreement (here) with the Justice Department, in which it agreed to pay an $87 million payment and a two-year corporate monitor.  Fresenius agreed to enhance...

Stanley Black and Decker Settles OFAC Enforcement Action for $1.9 Million

Stanley Black and Decker (“Stanley”) and its Chinese subsidiary Jiangsu Guoqiang Tools Co. (“GQ”) agreed to pay approximately $1.9 million to settle OFAC charges that it violated the Iran Sanctions Program.  The OFAC enforcement action was the fifth in 2019.  Stanley voluntarily disclosed the apparent violations to OFAC. See Here for a copy of OFAC Enforcement Action. Between June 2013 and December 2014, GQ exported...

DOJ “Tweaks” FCPA Corporate Enforcement Policy

The Justice Department is wedded to its FCPA Corporate Enforcement Policy (excuse me for the use of “wedded,” we recently celebrated our son’s wedding).  Nonetheless, DOJ has to adjust its Policy in response to experience and feedback.  That is a good thing and one that helps to ensure that the Policy is predictable and consistent in its application. I am convinced that the FCPA Corporate...

Former CFTC Chairman Calls to Strengthen Cryptocurrency Regulations

Matt Stankiewicz rejoins us for another posting on cryptocurrency compliance. Matt can be reached at mstankiewicz@volkovlaw.com. Just this month, former CFTC Chairman Timothy G. Massad released a report through the Brookings Institution entitled “It’s Time to Strengthen the Regulation of Crypto-Assets.”  Interestingly enough, Mr. Massad was at the helm of the CFTC during the financial crisis.  He even notes that he “share[s] the desire to...

Ethics, Profits, Sustainability and Stakeholders: An Update on a Familiar Relationship

And now we return to a familiar theme with some important updates – I always start with the simple proposition: ethical companies perform better over the long run; that does not mean that ethical companies will always be profitable, but it does mean that ethical companies will perform better than they would otherwise perform. Some call this the ethical advantage or the ethical premium.  I...

Thomson Reuters Webinar: Top 3 Areas for Anti-Corruption Compliance

Webinar: Top 3 Areas for Anti-Corruption Compliance April 11, 2019, 2 PM EST SIGN UP HERE As corruption risks increase, are you aware of the top 3 focus areas for compliance? Thomson Reuters is pleased to offer a webinar conducted by Julie DiMauro, Regulatory Intelligence Expert, and Michael Volkov, CEO at The Volkov Group focused on the top-3 issues for anti-corruption compliance. Global anti-corruption risks...