More countries are enacting and enforcing anti-corruption laws. While the enforcement environment is certainly changing with the enactment of new laws, and the allocation of more resources to enforce the laws, the most significant trend is the rise in international cooperation. The US has a long track record of cooperation with the UK. With the new Bribery Act in force, this will have a significant...
The UK Bribery Act is back on everyone’s radar screen – where it should be. Richard Alderman and the Serious Fraud Office (SFO) have been sending warning messages to a number of potential targets. Most recently, Alderman spoke to a meeting of private equity firms and let them know the risks they face. Of all the industries for the SFO to focus on with its new...
With the improving economy, companies are expanding their efforts to look for strategic acquisitions in emerging economies. The potential benefits from such deals are real and it is hard for companies to turn down such opportunities. The success of such a strategy may depend on proactive compliance and realistic risk assessments. Due diligence procedures are even more critical when engaging in an aggressive acquisition strategy....
We have heard enough about the FCPA, compliance and other mundane topics. It is time to switch gears to this summer’s hot topic — no, it is not the Nationals (although they are a fun team to watch at a great stadium) — the Roger Clemens criminal trial on six counts of lying to Congress, perjury, and obstruction of justice. I am not going to...
It is important to shine the light on government actions. The Justice Department’s record on FCPA enforcement is one area where sunlight is desperately needed. The FCPA applies to payments of money or any other thing of value to foreign officials with corrupt intent. The FCPA does not apply to payments of money or any other things of value to private individuals with corrupt intent. ...
U.S. companies that bridge the Atlantic Ocean to become active in Europe not only face a completely different set of business rules but most importantly — increased risk of FCPA prosecution. Gaining a presence in in the European market or fending off competitors in competition in that market requires creativity in dealing both with tenders by local authorities as well as demands of decision makers. It requires close cooperation...
Happy 4th to Everyone!! We are half way through 2011. For FCPA followers, the question is whether this year will be another year of enforcement “fireworks” or a “dud”? There are some trends which cannot be ignored. 1. The Justice Department is working on the biggest FCPA case ever!! The case will make Siemens look like a misdemeanor. 2. The Justice Department is using a wiretap to...
The recent Raj Rajartnam verdict demonstrated that wiretap evidence is compelling evidence against defendants. No wonder prosecutors will use more and more wiretaps to build white collar cases. Let’s brush aside one issue — wiretaps to investigated white collar crimes will rarely, if ever, be prohibited as a matter of law under current statutes. Wiretapping is authorized for wire fraud and almost every white collar...
It is hard to move businesses in different directions. I like to use the analogy of turning a ship around — it takes time, dedication and a steady hand. Corporate governance is shifting again. We had the revolution of Sarbanes-Oxley in the early 2000s and now we have a new movement afoot. It is no coincidence that aggressive changes in white collar enforcement coincide with...
With the UK Bribery Act becoming effective in less than 24 hours, companies are holding their breath. Will the SFO seek to make a splash by arresting individuals with perp walks on camera? Or will the SFO quietly but methodically build its caseload, and assert is enforcement position as a major player in the anti-corruption area? Part of the problem in answering these basic questions...
