Sorry to repeat myself (sorry, but inevitable in my maintaining this blog for 9 years), but the Justice Department, like other enforcement agencies, will tell everyone what they plan to do and then do it. Not on individual investigations, but in enforcement priorities, strategies and resources. Lisa Monaco, the Deputy Attorney General (No. 2 in DOJ), delivered an important speech at the National Institute of...
Mark Forkner, a former Chief Technical Pilot, was indicted on two counts of fraud involving aircraft parts in interstate commerce and four counts of wire fraud. If convicted, he faces a maximum penalty of 20 years in prison on each count of wire fraud and 10 years in prison on each count of fraud involving aircraft parts in interstate commerce. Boeing began to develop the...
When prosecutors turn on you, watch out. The economy is full of fraudsters, many of whom escape detection. Conmen, liars and cheats abound – when they get caught, however, the consequences can be severe. Interestingly, the SEC’s enforcement regime extends beyond the public markets and includes private companies. In the technology sector, there are numerous technology start-ups, all living for the dream to be acquired...
The Justice Department suffered a terrible blow to its reputation during the financial crash in 2008 to 2009 for failing to criminally prosecute those individuals responsible for the financial misconduct. It was one of the most devastating failures in DOJ history and stands as a stain against DOJ’s accomplishments in prosecuting white collar crime. The failure to prosecute stemmed from both a lack of will...
Brian Whisler is a long-time white collar practitioner at Baker McKenzie. Brian joined me to discuss the new Biden Administration and the enforcement outlook from the Biden Department of Justice. Brian has a unique perspective since he served as part of the DOJ transition in 2001 for the incoming Bush Administration. Brian’s Profile is Here. The Episode/Interview is HERE.
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...
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...
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...
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...
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...
