Just when we thought 2016 was over and we could all breathe a sigh of relief, DOJ and the SEC have continued to run with a string of new enforcement actions. To all of those prognosticators, paparazzi, commentators, chicken littles, and dire warnings, the answer is clear – FCPA enforcement is here to stay, compliance is a must, and increased DOJ/SEC resources are bearing fruit....
2016 FCPE Enforcement and Compliance Year in Review January 10, 2017 12 Noon EST Sign Up HERE The Justice Department and the SEC returned a big year in 2016 FCPA enforcement. In April 2016, DOJ adopted its FCPA Pilot Program to encourage companies to self-disclose FCPA violations and cooperate with government investigations. Despite a slowdown in 2015 and early 2016, DOJ and the SEC brought...
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...
Last week, the SEC added another pharmaceutical company to its list of FCPA violators when AstraZeneca agreed to a $5.5 million settlement with the SEC. AZ is now the 25th drug or medical device company to pay an FCPA penalty for violating the FCPA. AZ’s violations were not limited to China as a number of recent FCPA enforcement actions against drug/medical device companies, but included...
The SEC, last week, announced its $5 million settlement with Key Energy. As always, FCPA settlements contain important examples of enforcement priorities and policies. Key Energy’s recent settlement is an example of the benefits of cooperation, especially when a company, like Key Energy, did not initiate the investigation by disclosing the matter to the government. Key Energy agreed to a books and records and internal...
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...
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...
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...
We all face a number of risks every day. Yet, we do not respond to each and every risk. We engage in risk-ranking our responses. Some are more risk than others and some are more catastrophic than others. So, we engage in risk ranking each day and allocate our time and attention accordingly. The same applies, or should apply, when managing a compliance program. Resources...
There’s something happening here, but what it is ain’t exactly clear – “For What It’s Worth,” Buffalo Springfield At first glance, the SEC’s recent enforcement action against Johnson Controls for $14 million for FCPA violations in China, along with a Justice Department declination under its new Pilot Program, appears to be a “routine” enforcement matter. Unfortunately, this case was anything but routine and there are...
