In its first enforcement action of 2023, the Justice Department charged a Connecticut man and a foreign national with FCPA bribery and money laundering charges stemming from a bribery scheme to secure contracts with Petrobras in Brazil.  Glenn Oztemel was a senior oil and gas trader at two trading companies., and Eduardo Innecco, a dual Italian and Brazilian citizen, was an oil and gas broker...

The Justice Department has a long-record of criminal prosecutions of companies for manufacturing food products under unsanitary conditions.  In recent years, DOJ has prosecuted Blue Bell Ice Cream, Chipotle, ConAgra Grocery, Peanut Corporation of America and egg producers for production of food products that resulted in serious food borne illnesses. In a recent case, Kerry, Inc., a manufacturer of breakfast cereal for Kellogg’s Honey Smacks...

The Justice Department has taken steps to implement its new compliance compensation requirement announced in its Corporate Enforcement Policy revisions.  With little fanfare, the Danske Bank $2 billion settlement with the Justice Department include an additional provision in its settlement papers outlining the new requirement. DOJ’s settlement papers include standard provisions that have grown through the years.  Schedule C has set forth DOJ requirements for...

In a far-reaching decision with significant implications, the Delaware Chancery Court recently issued a decision confirming that Caremark duty of oversight obligations extends to senior officers.  This will have an immediate impact on shareholder derivative risks and litigation.  Companies now will face duty of oversight breach claims that include or even just focus on senior officers who have breached their fiduciary duty of oversight.  Vice...

The SEC knows that it has powerful enforcement tools. The FCPA imposes two important requirements on issuers – keep accurate books and records and maintain internal controls to ensure that management’s accounting controls operate effectively to ensure proper use of corporate assets. The SEC knows these are broad requirements.  One critical area of focus has been the SEC’s focus on contract-invoice-payment process.  For compliance professionals,...

Here are some basic propositions that surround FCPA compliance. It is often underplayed that the FCPA contains more than just a bribery prohibition – the FCPA contains broad provisions, requiring accurate books and records and internal controls.  When it comes to bribery, wrongdoers have to find ways to “steal” or gain unauthorized access to money often by circumventing internal controls. Thus, bribery conduct often goes...

DOJ is poised for a big year in the enforcement of Russian Sanctions and seizure of assets connected to Russian Oligarchs.  It has been nearly a year since the U.S., its allies and partners have unleashed robust sanctions against Russia in response to Russia’s invasion of Ukraine.  DOJ’s commitment to sanctions enforcement has been steady and will only increase. In a recent case, DOJ announced...

The Volkov Law Group is honored to celebrate its ten-year anniversary.  When we started in February 2013, we had no idea on the path our journey would take.  We look back with gratitude and forward with passion and optimism.  We appreciate our clients with whom we have had the privilege to collaborate.  In addition, we value our families, friends and colleagues with whom we have...

Alex Cotoia, Regulatory Manager at The Volkov Law Group, rejoins us for a posting on recent ITAR Guidance on U.S. Persons Abroad. Alex can be reached at [email protected]. On January 5, 2023, the U.S. Department of State’s Directorate of Defense Trade Controls (“DDTC”) published updated guidance concerning authorizations issued to U.S. Persons Abroad (“USPABs”) as defined in 22 C.F.R. Section 120.62. Current regulations require all...