Tagged: FCPA

GOL’s Bribery Schemes Orchestrated by Board Director (Part II of II)

GOL’s bribery schemes present some interesting lessons.  Interestingly, at the center of the bribery scheme was a member of GOL’s board of directors.  The bribery scheme was motivated by potential legislation that would benefit GOL and other Brazilian airlines.  In 2011, Brazil proposed an economic stimulus consisting, in part, with reduced payroll taxes for labor-intensive industries.  To support this reduction, GOL’s director agreed to pay...

Justice Department Announces FCPA Charges Against Two Individuals for Bribery of Marshall Islands Officials

The Justice Department announced the indictment in New York of Cary Yan, a Chinese entrepreneur, and Gina Zhou, his assistant, on FCPA and money laundering charges relating to a scheme to secure control of an atoll owned by the Republic of the Marshall Islands (RMI).  Yan and Zhou paid bribes to elected officials in the RMI in exchange for passing specific legislation.  Yan and Zhou...

Episode 245 — Second Circuit Affirms Trial Judge Dismissal of FCPA Verdicts Against Alstom Executive

The Second Circuit Court of Appeals affirmed the district judge’s post-conviction dismissal of FCPA counts against Lawrence Hoskins, a former Alston executive, for his involvement in bribery scheme to secure a $118 million energy contract in Indonesia.  The Hoskins FCPA case has had a long and tortious path through the court system, and the Second Circuit’s decision, which was decided by a 2 to 1...

CCOs and Execution of Compliance Certification: A Significant Risk? (Part III of III)

CCOs, by definition, are careful and deliberate.  It comes with the profession.  As risk managers, CCOs are skilled in identifying, assessing and acting in a risk environment. The impact of the new CCO certification requirement, however, presents serious risks that cannot be brushed off or ignored in the face of assurances that prosecutorial discretion will protect CCOs from misguided prosecutions.  Frankly, CCOs recognize that there...

Episode 238: 2022 FCPA Enforcement Trends . . . So Far

In following the Justice Department and the Securities Exchange Commission FCPA enforcement actions, I am always reminded of the popular phrase — “reading the tea leaves.” (or “tasseography,” a fortune-telling method based on tea leave patterns in tea sediments). Despite a slow initial year in 2021, the Biden Administration’s stamp and push on FCPA enforcement is becoming clear.  Keep in mind, DOJ and SEC officials have...

Episode 237 — The Tenaris SEC FCPA Settlement

The SEC announced another FCPA settlement in 2022. FCPA enforcement, in general, is picking up. Tenaris, a global supplier of steel pipes and related services for the energy industry agreed to pay the SEC $78 million to resolve FCPA violations that occurred in Brazil. The US Department of Justice closed its investigation without bringing charges. In this Episode, Michael Volkov reviews the SEC settlement.

US Coal Company VP Arrested and Charged with FCPA, Money Laundering and Wire Fraud Violations

The Justice Department announced the arrest and indictment of Charles Hunter Hobson for violating the FCPA, money laundering and receiving kickbacks arising from a bribery scheme to pay government officials in Egypt in exchange for contracts for coke and chemicals with Al Nasr, an Egyptian state-owned company. Last year, Frederick Cushmore, the former VP and head of International Sales at Corsa Coal Corporation, pleaded guilty...

2022 Ethics and Compliance Predictions

Choose to be optimistic. It feels better.” – Dalai Lama Forgive me for my optimism.  It is the only way to live a meaningful life.  Or as some would say – being a pessimist is too much of a burden.  We begin a New Year — and I am optimistic. To turn the corner here on relevance, ethics and compliance professionals, are by definition, optimists. Give...

FCPA Potpourri: Catching Up with FCPA Enforcement

While we wait for the coming FCPA enforcement storm, DOJ and the SEC have quietly continued to rack up and resolve several enforcement actions.  Here is short and sweet review of many of these actions: Luis Enrique Martinelli, son of the former Panama President, was recently presented in federal court in Brooklyn after the U.S. finally secured his extradition from Guatemala.  Luis Enrique Martinelli sought...

Keeping Track of Third Party Risks – Bribery and Sanctions

We have heard it over and over, again and again – third-parties pose significant risks of bribery for all global businesses.  Almost every FCPA enforcement action includes some form of third-party misconduct.  The current picture from the Stanford FCPA Resource confirms the story. A cottage industry of automated platforms, data analytics, due diligence and monitoring strategies have grown around third-party bribery risk.  Companies have designed...