The criminal trial of Lauren Stevens, Glaxo’s vice president and in-house counsel, begins tomorrow. There is a lot at stake besides the liberty of Lauren Stevens. The government claims that Stevens made false statements and obstructed justice in responding to the FDA’s informal inquiry letter in an off-label marketing investigation. Stevens claims she merely repeated information given to her by in-house and outside counsel, and...

In response to the aggressive enforcement environment, companies have been revising policies for travel, gifts, entertainment, and hospitality. As they do so, it is important for each company to consider these questions – What is the precise risk which is being addressed? How will the policy minimize the risk of bribery? How will internal accounting controls incorporate these policies? Companies know that the risks of...

The Obama Administration has forged a stronger economic relationship with India. For good reason – India’s economy is expected to grow by 8 percent in 2011. India’s GDP is only one-fourth the size of China’s GDP. Over the next forty years, India’s economy is expected to grow at a faster rate than China’s economy. Corruption in India is rampant. According to Transparency International, India ranks...

The number of securities class action lawsuits against Chinese companies is increasing. The reason – serious allegation of accounting fraud. In early April 2011, four major lawsuits were filed against China Electric Motor, Inc.; Advanced Battery Technologies, Inc., China Intelligent Lighting and Electronics, Inc.; and China Century Dragon Media. The allegations against these companies relate to accounting misstatements and misrepresentations, failure to report and disclose...

The number of securities class action lawsuits against Chinese companies is increasing. The reason – serious allegation of accounting fraud. In early April 2011, four major lawsuits were filed against China Electric Motor, Inc.; Advanced Battery Technologies, Inc., China Intelligent Lighting and Electronics, Inc.; and China Century Dragon Media. The allegations against these companies relate to accounting misstatements and misrepresentations, failure to report and disclose...

The Department of Justice (DOJ) has ramped up its battle against online poker sites. Some cynical commentators have cited one reason for DOJ’s aggressive stance – money! Let’s look at the facts – last year, the Department collected over $1 billion in fines and disgorgement from just its top-8 FCPA settlements. In its case against PokerStars, Full Tilt Poker and Absolute Poker, DOJ seized 75...

In the aftermath of the financial crisis, and the growing number of bank failures — approximately 350 during the last 3 years — there has been an outcry from the public, politicians, regulators and law enforcement calling for criminal prosecution of executives from these failed banks.  They cite the aggressive criminal prosecution of executives (approximately 1800 criminal cases) from the failed savings and loan crisis...

FCPA practitioners assume that businesses are familiar with the risks of foreign bribery violations and are focused on compliance programs and practices.  That assumption may be just that — an assumption. Would it surprise you to learn that many businesses around the globe are aware of foreign bribery incidents, are aware that prosecutors are aggressively enforcing anti-bribery laws, and readily admit that their company does not have a specific procedure...

On 25 February 2011, the Republic of China adopted tan amendment to its criminal laws to criminalize the bribery of officials of foreign governments or international public organisations in order to gain a commercial benefit. How and to what extent the new law will be enforced is not yet clear.  Foreign companies which have invested in, or operate joint ventures with, Chines enterprises should review the amendment,...

In its recent settlement with Johnson & Johnson, the Justice Department sent an important message to the compliance community by outlining “enhanced” compliance requirements.  This was the first time that the Justice Department identified compliance program elements beyond “minimum” requirements. What is DOJ’s purpose in outlining these “enhanced” requirements?  Should companies implement these elements as part of an overall compliance program?  It depends.  DOJ is not suggesting that these requirements are...