The Treasury Department’s Office of Foreign Asset Control (“OFAC”) is a busy enforcement agency.  OFAC has implemented the comprehensive Russia Sanctions Program in response to Russia’s invasion of the Ukraine.  The scope and pace of this process has been unprecedented.  Along the way, OFAC is continuing a steady pace of sanctions enforcement actions.  In a recent action, Banco Popular de Puerto Rico (“Banco Popular”), a...

In following the Justice Department and the Securities Exchange Commission FCPA enforcement actions, I am always reminded of the popular phrase — “reading the tea leaves.” (or “tasseography,” a fortune-telling method based on tea leave patterns in tea sediments).  Despite a slow initial year in 2021, the Biden Administration’s stamp and push on FCPA enforcement is becoming clear.  Keep in mind, DOJ and SEC officials...

The SEC announced another FCPA settlement in 2022.  FCPA enforcement, in general, is picking up.  Tenaris, a global supplier of steel pipes and related services for the energy industry, agreed to pay the SEC $78 million to resolve FCPA violations.  The US Department of Justice closed its investigation without bringing charges. The resolution of Tenaris’ case is interesting because of Tenaris’ recidivist status.  In 2011,...

The Justice Department has resumed FCPA enforcement with a bang.  The new enforcement approach has been unveiled and the message for CCOs and corporate business leaders is clear — anti-corruption compliance should be a critical compliance priority.  Companies that fail to do so will be severely punished.  The new DOJ approach stands as one of the most important events elevating the importance of corporate compliance...

Glencore’s settlement with DOJ and the CFTC revealed a plethora of manipulative, deceptive and corrupt conduct, which spanned from at least 2007 to 2018 and occurred in the United States and global oil markets, including manipulation of four U.S. based S&P Global Platts physical oil benchmarks and related futures and swaps. From 2007 to 2018, Glencore sought to increase profits from physical and derivative oil...

The broad and pervasive scope of Glencore’s bribery conduct is obvious.  The scope of its misconduct reflects Glencore’s fatal culture and commitment to profits at any and all cost.  Glencore’s board and senior executive team forgot the basic equation — ethical companies are more profitable in the long run.  Instead, Glencore embraced immediate gratification, circumventing controls and adhering to a culture of lawlessness. Glencore’s bribery...

The Justice Department has been promising a new, more aggressive approach to FCPA enforcement.  DOJ officials have made statements to that effect on numerous occasions.  The Biden Administration touted its elevation of the battle against corruption as a national security issue and it issued its Strategy Against Corruption, which included numerous promises, initiatives and proposed policy changes.  Along with these events, DOJ has repeatedly touted...

In a long-anticipated and major enforcement action, the Justice Department and the Commodities and Futures Trading Commission resolved a sprawling investigation with Glencore  International A.G. and Glencore Ltd, a Swiss-based commodity trading and mining company. Glencore entered guilty pleas for FCPA violations and a commodity price manipulation scheme.  Glencore paid over $1.1 billion to resolve these two major investigations. The resolution in the U.S. was...

The evolution in the global economy is raising challenges for anti-corruption compliance.  In response to economic dislocations and disruptions stemming from the COVID-19 pandemic and Russian invasion of Ukraine, businesses encounter situations where supply chain delays and disruptions inevitably increases bribery demands and pressures. A perfect example of such a situation was the delay in export of essential goods from China to the United States...

In a blockbuster settlement, DOJ unleashed its full power against Allianz Global and key portfolio managers responsible for a massive, long running fraud scheme involving a series of private investment funds managed by Allianz Global Investors U.S. (AGI).  These funds eventually collapsed as a result of the economic hardships caused by the pandemic, resulting in investor losses of billions of dollars. Gregoire Tournant, Chief investment...