The SEC settled with J&F Investimentos (“J&F”) for approximately $27 million.  Unlike the DOJ settlement, the SEC included JBS and Joseley and Wesley Batista in its enforcement action.  The factual predicate for the settlement involved a different focus from the Justice Department’s Statement of Facts.  J&F’s principal owners, Joesley and Wesley Batista, each agreed to pay a civil penalty of $550,000. The conduct involved Joesley...

J&F’s Investimentos bribery scheme was pervasive and was coordinated with a senior Brazilian Finance minister and orchestrated through the use of United States banking.  The Brazilian official appears to be Guido Mantega, who went on to serve as Brazil’s finance minister. Given J&F’s large penalty in Brazil, DOJ’s resolution was reasonable in light of the consistent use of the US banking system to execute the...

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The Justice Department’s Antitrust Division’s criminal enforcement program is having a strong year.  Since completing its long-term and record-setting prosecution of Japanese auto parts suppliers, the Antitrust Division focused attention on new industries, including generic pharmaceuticals, chicken processors, government contractors, electronic capacitors, and health care.  It takes time to bring about results. This year, the Antitrust Division, along with state prosecutors, focused on the Florida...

We all know it when we see it – a recurring fact pattern in which a company enlists a corrupt third party intermediary for one purpose (and one purpose only) – to pay a bribe.  Let me give you a few examples. Cognizant Technology In the Cognizant Technology FCPA enforcement action, the former President and General Counsel directed the scheme with two other C-Suite officers...

The Justice Department announced a major expansion of its ongoing investigation and prosecution of executives and employees in the boiler chicken price-fixing conspiracy. DOJ recently returned a superseding indictment adding six new defendants to the boiler chicken conspiracy indictment, and expanding the scope of the charged conspiracy.  (Here for earlier Posting on conspiracy). The new indictment charges ten (10) executives and employees at boiler chicken...

The former deputy finance chair of the Republican National Committee and prominent fundraiser for President Trump has agreed to plead guilty with lobbying on behalf of Jho Low, an indicted and fugitive financier, who was charged in the ongoing 1MDB sovereign wealth fund investigation and prosecution. Broidy agreed to assist Jho Low by lobbying the Justice Department and administration and failed to register as required...

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By any measure, the SEC’s whistleblower program has been a success.  Since its inception about 10 years ago, the SEC has collected $2.5 billion in financial recoveries based on whistleblower tips.  A large portion of this money has been returned to victim investors. Section 922 of the Dodd-Frank Wall Street Reform and Consumer Protection Act added Section 21F to the Securities Exchange Act of 1934...