Category: General

Travel Insurance Companies Hit with OFAC Enforcement Actions

The Treasury Department’s Office of Foreign Asset Control (“OFAC”) continues to rack up settlements.  Two travel insurance companies recently settled OFAC enforcement actions for violations of the Cuban Embargo. Allianz Global Risks Allianz Global Risks US Insurance Company (“AGR US”) is the US subsidiary of the German financial company.  AGR US operates AGR Canada as a branch office in Toronto, Canada.  AGR US agreed to...

Compliance Messaging: Need a Reason? ‘Tis the Season!

Jessica Sanderson, Of Counsel at The Volkov Law Group, rejoins us for a posting on gift-giving, the holiday season and compliance messaging. Jessica can be reached at jsanderson@volkovlaw.com. As the holidays quickly approach, consider sending a message from the Board or senior management reminding employees about your gift and hospitality policy. DOJ Guidance highlights tailored communications as a “hallmark” of any well-designed compliance program, and...

Bumble Bee CEO Convicted of Participating in Price-Fixing Conspiracy

Global companies are paying greater attention to criminal antitrust risks – and with good reason.  We often dwell on the impact to a company of a major FCPA investigation.  A global criminal antitrust investigation often in destabilizing given the mature global enforcement environment.  Cartel members often have to respond to multiple jurisdictions to resolve their potential liability. In early December 2019, after a four-week trial,...

Boston Heart Diagnostics Pays $26.67 Million to Settle False Claims Act Case

Boston Heart Diagnostics, a Massachusetts company, agree to pay $26.7 million to settle a False Claims Act case involving allegations of paying illegal kickbacks to physicians.  According to the settlement, Boston Heart charged Medicare and Medicaid patients for advanced lipid testing referred by providers who received kickbacks from independent marketers at the direction of Boston Heart.  Starting in 2015, Boston Heart provided advanced lipid testing...

Turning a Turbulent Social and Political Environment into Positive Ethical Culture Strategies

Corporate cultures do not operate in a silo or free from external influences.  Yet again, another profound grasp of the obvious.  Employees, managers and senior leadership all bring their own experiences, perspectives, attitudes and influences.  Of course, our political and social environment is a consistent and steady influence on corporate culture and behavior. Given the current social climate, the divisive nature of our politics, particularly...

Ericsson’s Pervasive Bribery Conduct: The Toxic Mix of Senior Executive Involvement and Third Party Corruption (Part II of II)

Ericsson’s FCPA settlement is in the books (not the books and records).  But it casts a significant shadow across the FCPA landscape.  A pervasive and systemic culture of bribery is defined to reflect senior executive involvement, winning business at any cost and using bribery as an accepted business strategy.  Ericsson will now pay more than just the price of a $1 billion settlement; it will...

Ericsson Pays $1 Billion for Systemic FCPA Violations (Part I of II)

The Sweden-based telecommunications company, Ericsson, agreed to a pay a total of $1 billion (yes, billion with a “B”) for FCPA violations.  Ericsson entered into settlement agreements with DOJ and the SEC.  Ericsson agreed to pay a criminal penalty of over $520 million and approximately $540 million to the SEC.  An Ericsson subsidiary in Egypt entered a guilty plea to an FCPA conspiracy to violate...

DOJ Indicts Former Braskem CEO on FCPA Criminal Charges

Recently, the Justice Department unsealed an indictment charging Jose Carlos Grubisich, the former CEO of Braskem S.A. with participating in an FCPA conspiracy with Odebrecht S.A.  Grubisisch was arrested last Wednesday. Copy Here. Grubisich is charged with one count of conspiracy to violate the FCPA bribery provisions, one count of FCPA conspiracy to violate the FCPA’s books and records provisions and falsely certifying financial reports,...

Apollo Aviation Group Pays $210k to OFAC for Violations of Sudanese Sanctions Program

Apollo Aviation Group, now Carlyle Aviation Partners, agreed to pay OFAC $210,600 for 12 violations of the Sudanese Sanctions Program.  Carlyle acquired Apollo in December 2018, and Carlyle was not involved in the transactions.  The broad prohibition in the Sudanese Sanctions Program were lifted on January 17, 2017, but the transactions occurred prior to the relaxation of the sanctions program.  Apollo was a multi-strategy aviation...

DOJ Tweaks FCPA Corporate Enforcement Policy

The Department of Justice recently announced updates to its Foreign Corrupt Practices Act Corporate Enforcement Policy. While the changes were relatively minor, the modifications underscored important principles surrounding the FCPA Corporate Enforcement Policy.  There is no question that DOJ has landed on a Corporate Enforcement Policy that took years to develop.  The FCPA Corporate Enforcement Policy now applies to all corporate criminal prosecutions except Antirust...