Well, add another pharmaceutical company to the FCPA healthcare “sweep.” Frankly, the term “sweep” makes it sound like a coordinated enforcement effort – instead, it is more accurate to think of it as multiple prosecutions against a high-risk industry. Whatever the enforcement background, Sanofi settled an FCPA case with the SEC for $25 million. DOJ closed its investigation of Sanofi in March 2018. The SEC...
Since my last update on the Russia investigation in December 2017, Special Counsel Mueller’s investigation has been gaining momentum — Paul Manafort has plead guilty and agreed to cooperate after he was convicted in the Eastern District of Virginia. Michael Cohen entered into a plea agreement with the Southern District of New York prosecutors, including a specific admission that President Trump directed him to make...
In light of the evolving (or evolved) DOJ and SEC approach to FCPA enforcement in the merger and acquisition context, global companies have to emphasize their post-acquisition process. Obviously, this is not limited to ethics and compliance issues. An acquiring company has a long list of tasks needed to complete in order to integrate the new company into the existing company’s operations. Global companies that...
Several years ago (or in the recent past as some would say), pre-acquisition due diligence was a major compliance focus for global companies that grew through aggressive merger and acquisition strategies. In some respects, and perhaps in reaction to relaxation of some of DOJ’s strict requirements that applied ten years ago (i.e. Halliburton Opinion Letter 08-02), companies appear to be adjusting their compliance priorities and...
Global companies that grow through a deliberate merger and acquisition strategy continue to face significant anti-corruption risks. The list of FCPA enforcement actions includes numerous examples of companies that settled FCPA matters because of post-acquisition conduct, which usually reflects inadequate post-acquisition procedures. Despite the obvious risks and the Justice Department’s and SEC’s efforts to afford some flexibility in this area, global companies usually fail to...
FCPA 2018: Update on Enforcement and Compliance Trends Tuesday, September 25, 2018, 12 Noon EST Sign Up HERE FCPA enforcement continues as a major risk for global companies. Despite early concerns about the new administration’s commitment to aggressive FCPA enforcement, the DOJ and SEC continue to prosecute and settle FCPA cases against companies and individuals. Join Michael Volkov, CEO of The Volkov Laws Group, as...
I am excited to announce the addition of Noah Smith as a new Associate at The Volkov Law Group. When I launched the firm, I was committed to providing high-quality ethics and compliance, and enforcement defense services. With the help of my existing members we have been fortunate to grow and develop our services and capabilities. I am proud to announce that Noah Smith will...
Okay, I have to admit – it is getting hard to keep up with all the changes to the Russia Sanctions Program. The Treasury Department, Office of Foreign Asset Control’s imposition of the Oligarch Sanctions (here) and Congress’ passage of the Countering America’s Adversaries Through Sanctions Act (“CAATSA”) (here) has made life difficult. There is no way anyone can really follow the bouncing ball in...
On May 8th, 2018, the Trump administration withdrew from the Joint Comprehensive Plan of Action or JCPOA and began to reimpose the U.S. nuclear-related sanctions. All of the sanctions in existence prior to the JCPOA including nuclear-related secondary sanctions will be effective on November 5, 2018. The wind-down of Iran-related activities pursuant to authorizations provided by the JCPOA is required in two wind-down periods – a 90 day...
Legg Mason can finally close its books on the Gaddafi-era, Libyan bribery scandal. In June 2018, Legg Mason entered into a non-prosecution agreement with the Justice Department and agreed to pay $32 million for its role in the bribery scheme. Société Générale entered into a deferred prosecution agreement and paid $585 million for FCPA violations. Société Générale and Legg Mason admitted to paying over $90...
