Tagged: DOJ

13 Mar, 2019

Lessons Learned and Trends from MTS FCPA Enforcement Action and Criminal Indictment of Karimova and Akhmedov (Part III of III)

The MTS FCPA enforcement action stands as one of several significant prosecutions in FCPA history. The breadth and depth of MTS’ corruption scheme stands as another example of systemic bribery cultures. The details of the enforcement action underscore several important trends and enforcement policies. Let’s review some of the more significant lessons learned and trends. Application of FCPA Corporate Enforcement Policy: MTS was not able...

General

12 Mar, 2019

Anatomy of MTS, Karimova and Akhmedov Bribery Scheme in Uzbekistan (Part II of III)

The MTS bribery scandal in Uzbekistan represents the culmination of several significant FCPA violations involving VimpelCom, Telia Sonera, MTS, and Gulnara Karimova, the notoriously corrupt daughter of the former Uzbek President. Karimova is perhaps one of the most notorious corrupt offenders in the world. She has been under house arrest in Uzbekistan since 2014. (Indictment Here). According to MTS’ admissions, MTS and its subsidiaries, Uzdunrobita...

General

15 Jan, 2017

The Real Explanation for the Record Year for FCPA Enforcement

I am not an “I told you so” person – frankly, it is a very unattractive character trait. I am more comfortable with the old adage – even a broken clock is correct twice a day. I fall into that category. All the FCPA prognosticators, predictors and paparazzi have missed the boat on understanding what happened this year – 2016, to make this a record...

General

18 Oct, 2016

DOJ and SEC Raising the Stakes on Third Party Risk Management

If you review the last ten years of FCPA enforcement, the unmistakable pattern is rising expectations with regard to corporate compliance programs, particularly with regard to third party due diligence and risk management. Over the course of numerous enforcement actions, DOJ and the SEC have reached the point now where they are questioning not just the conduct of due diligence but the quality of due...

General

30 Aug, 2016

FCPA Enforcement Actions and Reputational Damage

If you ask members of a corporate board or senior executives about the cost of an FCPA enforcement action, they will candidly acknowledge all of the costs – fines, penalties, and professional costs (e.g. legal, accounting, forensic). These are significant costs and nothing to sneeze or laugh at (however the expression goes). In a moment of candor the board members and C-Suite executives will confess...

General

11 Aug, 2016

Third Party Risk Management Not Just Due Diligence

The term “due diligence” is an overused expression in the compliance world. It has become a term to mean heightened concern or investigation. No one can really define what it means except to say it has different meanings in different contexts. Some would say it is a term of art in the legal and compliance world. It is misleading to add the term “investigation” to...

General

10 Aug, 2016

FCPA Compliance: Does “Anything of Value” Really Mean “Anything of Value”?

The FCPA statute is not as vague as some contend. I remember the words of a former FTC Chairperson who told me once – “The Clayton Act is not vague. I just read the law and apply it to the facts.” Not to be too simplistic, I recognize there are legitimate disputes surrounding application of the FCPA to specific situations. As one example, I have...

General

7 Aug, 2016

Headlines from Mid-Year FCPA Enforcement Review

Just to add my voice to the cottage industry surrounding FCPA enforcement and compliance, I wanted to take a deep breath and offer some observations on FCPA enforcement in 2016. There are a few significant headlines for the year so far, and I suspect more to come as we get close to the end of the year when FCPA enforcement usually picks up a little...

General

3 Aug, 2016

Getting Your Arms Around Antitrust Compliance (Part II of II)

Anti-corruption compliance programs are the rage now – is that a young person’s expression? Antitrust has been a forgotten stepchild, partly because of DOJ’s unwillingness to credit companies that maintain effective compliance programs. That is not a legitimate excuse since every company should be addressing antitrust compliance as part of an overall compliance program. Antitrust compliance, however, has been around for many years, and usually fell...

General

31 Jul, 2016

DOJ and SEC Collect $22 Million from LAN Airlines for Conduct in Resolving Labor Dispute

Last week, the Justice Department (here) and the SEC (here) announced parallel FCPA settlements totaling $22 million in fines, penalties and disgorgement against LAN Airlines, a Chile-based airline, for conduct in resolving a labor dispute in Argentina. In March 2016, the SEC settled a case with LAN’s CEO for approving payments to a consultant, an advisor to the Secretary of Argentina’s Ministry of Transportation, to...