United States businesses are experiencing a sanctions whipsaw. Since 1979, the President has issued twenty-six Executive Orders restricting trade and commerce with Iran. The Iran Sanctions Program imposed strict prohibitions in a range of areas. The Iran Sanctions Program and the Cuba Embargo are the two most restrict sanctions program implemented by the United States. All of this changed in January 2016 when the Joint...
FCPA enforcement in the first half of 2018 continued at a steady pace. The first half of 2018 included several significant corporate and individual prosecutions for FCPA violations. Tom Fox and Michael Volkov review FCPA enforcement and identify significant trends and enforcement actions. Tom Fox has released his new compliance book — The Compliance Handbook, which is available at HERE
Companies are hyper-focused on third-party risks, especially when it comes to anti-corruption risks. And for good reason – a large percentage of FCPA enforcement actions involve illegal use of third parties to carry out illegal bribery schemes. In this era of third-party risk management, however, companies may be missing a more significant risk – employee misconduct. In the global economy, companies face a number of...
The Justice Department’s Antitrust Division maintains a robust criminal enforcement program fueled by the steady stream of leniency applicants. Since the 1990s, the Antitrust Division has trumpeted a successful leniency program that has been followed by many other foreign enforcement agencies. There is no question that the Antitrust Division’s leniency program has led to major prosecution and settlement successes. The Antitrust Division has used this...
There are two distinct themes in FCPA enforcement – the first is consistency, i.e., that some enforcement actions are relatively consistent across the board and, in the last five to ten years, the FCPA caseload has been fairly steady; the second is variability, meaning that new policies have an impact on FCPA enforcement. Some minor and some major. All of this may be another in...
Companies face evolving and significant cyber risks. The FBI estimates that ransomware will generate at least $1 billion for criminals. Businesses stand to lose at least $400 billion each year from hacks. The cyber defense, forensics and insurance industry will be worth nearly $200 billion by the end of this decade. Each year there is an average of 1.5 million cyber attacks, or approximately 4000 per day....
After a lengthy investigation conducted by the SEC, Beam Suntory agreed to pay $8 million to settle FCPA violations in India. (Copy of SEC order Here). Beam’s settlement took over 5 years from initial disclosure to resolution – a long-time to say the least. Interestingly, there has been no resolution or mention of a parallel DOJ investigation. Beam’s conduct follows similar conduct by other liquor companies...
The Volkov Law Group is pleased to announce the addition of Stephen Cheng and Marcel de Chermont to the firm. Both bring a wealth of compliance experience to the firm and promise to assist us in continuing to offer our clients the high-quality ethics and compliance, and enforcement defense services that we offer. We look forward to introducing them to new and existing clients. Stephen...
Credit Suisse has joined the ranks of other banks and companies that have settled FCPA violations involving hiring of government officials’ relatives in exchange for business benefits, including JPMorgan Chase; BNY Mellon, and Qualcomm. There are several banks still under investigation for such practices, including Citigroup, Barclays, Deutsche Bank, HSBC and Goldman Sachs. The hiring program enforcement actions demonstrate the Justice Department’s and SEC’s broad...
Credit Suisse Group AG and its Hong Kong subsidiary settled FCPA charges with the Justice Department and the Securities and Exchange Commission. The Justice Department announced that Credit Suisse’s Hong Kong subsidiary agreed to pay $47 million in exchange for a non-prosecution agreement (NPA) for FCPA violations involving hiring of friends and families of Chinese officials to win investment banking business (here). The SEC announced...
