On February 10th, President Trump signed an Executive Order Titled “Pausing Foreign Corrupt Practices Act Enforcement to Further American Economic and National Security.”
Set forth below are FCPA (and related) developments since February 10th.
Linking all of these developments directly and solely to the Executive Order would be foolish as pre-February 10th many of these same developments have long occurred in the FCPA space (such as the DOJ dismissing a pending FCPA matter, a company disclosing FCPA scrutiny and thereafter disclosing that the DOJ/SEC have dropped an investigation, certain conditions of settlement ending “early”).
March 12th
As highlighted in this prior post, in January 2024 Calavo (which describes itself as a global leader in quality produce, including avocados, tomatoes and papayas, and a pioneer of healthy fresh-cut fruit, vegetables and prepared foods) disclosed FCPA scrutiny.
In a March 12th filing, Calavo stated:
“We continue to cooperate fully with the SEC and the Department of Justice (DOJ) investigations relating to the Foreign Corrupt Practices Act (FCPA). On February 5, 2025, Attorney General Bondi issued a memorandum stating, in regard to the FCPA, that the DOJ “shall prioritize investigations related to foreign bribery that facilitates the criminal operations of Cartels and Transnational Criminal Organizations, and shift focus away from investigations and cases that do not involve such a connection. Examples of such cases include bribery of foreign officials to facilitate human smuggling and the trafficking of narcotics and firearms.” While the DOJ’s policy may evolve, we are currently unaware of any facts suggesting conduct of any of our employee that would fall within the examples provided in the DOJ’s February 5, 2025, memoranda.
Additionally, on February 10, 2025, President Trump issued an Executive Order “Pausing Foreign Corrupt Practices Act Enforcement to Further American Economic and National Security,” which stated that for a period of 180 days following the date of the order, “the Attorney General shall review guidelines and policies governing investigations and enforcement actions under the FCPA. During the review period, the Attorney General shall: . . . (ii) review in detail all existing FCPA investigations or enforcement actions and take appropriate action with respect to such matters to restore proper bounds on FCPA enforcement and preserve Presidential foreign policy prerogatives; and (iii) issue updated guidelines or policies, as appropriate…”
On February 18, 2025, President Trump issued Executive Order “Ensuring Accountability for All Agencies” that stated, “it shall be the policy of the executive branch to ensure Presidential supervision and control of the entire executive branch” and that “independent regulatory agency chairmen shall regularly consult with and coordinate policies and priorities with the directors of OMB, the White House Domestic Policy Council, and the White House National Economic Council.” On February 18, 2025, the SEC notified us that activity in the investigation has been postponed, after President Trump issued Executive Orders on February 10 and February 18, 2025. Given the Attorney General’s February 5, 2025 Memo and the President’s Executive Orders, along with a potential shift in DOJ and SEC priorities, we do not currently anticipate any near-term action from the government’s FCPA inquiry that would likely have a material impact on our short-term financial outlook.”
Late March
In May 2022, Glencore (a commodities company incorporated in the United Kingdom and headquartered in Switzerland) resolved a net $443 million Foreign Corrupt Practices Act enforcement action regarding conduct in Nigeria, Cameroon, Ivory Coast, Equatorial Guinea, Brazil, Venezuela, and the Democratic Republic of Congo.” (See here for the prior post).
In summary fashion, the DOJ alleged:
“From at least in or about 2007 up to and including in or about 2018, Glencore, through certain of its employees and agents, while acting on behalf of Glencore, together with its co-conspirators, knowingly and willfully conspired and agreed with others to corruptly provide more than $100 million in payments and other things of value to various intermediaries with the intent that a significant portion of these payments would be used to pay bribes to and for the benefit of foreign officials to secure an improper advantage and to influence those foreign officials in order to obtain or retain business in Nigeria, Cameroon, Ivory Coast, Equatorial Guinea, Brazil, Venezuela, and the Democratic Republic of Congo.”
As a condition of settlement, Glencore agreed to retain a compliance monitor for a three year period.
As stated by the DOJ:
“because certain of the defendant’s compliance enhancements are new and have not been fully implemented or tested to demonstrate that they would prevent and detect similar misconduct in the future, the imposition of a Monitor is necessary to reduce the risk of recurrence of misconduct;”
The May 2022 plea agreement stated: “In the event the Offices find, in their sole discretion, that there exists a change in circumstances sufficient to eliminate the need for the monitorship …the monitorship may be terminated early.”
In late March, a judge granted a DOJ request to terminate the monitor early.
As stated by the DOJ:
“The Government has assessed the facts and circumstances of the case and determined to exercise the Government’s sole discretion under the Plea Agreement to terminate the monitorship early.”
April 2nd
As highlighted here, in early 2022 PetroNor E&P ASA (an Africa-focused independent oil and gas exploration and production company listed in Norway) disclosed:
“PetroNor E&P ASA has previously announced that the National Authority for Investigation and Prosecution of Economic and Environmental Crime in Norway (Økokrim) in December 2021 opened investigations into criminal charges and allegations of corruption brought against individuals related to the Company, namely its previous CEO and his business companion who together hold shares in the Company through their holding companies. [See here] There are no further updates in relation to the investigations against these individuals.
The Company has, however, received a notification from Økokrim that the Company’s Chairman of the Board, Mr. Eyas Alhomouz (US citizen), has been made subject to the ongoing investigations carried out by Økokrim and has been given the status as suspect, and that the U.S. Department of Justice has opened a separate investigation into these allegations, based on information from Økokrim.
As previously announced, no charges have been brought against PetroNor nor any of its Group companies.
The Company takes anti-corruption and the matter at hand very seriously. The Company has adopted the following remediation steps: removing the individuals charged by Økokrim in December from business operations; engaging independent legal counsel to support the board’s governance and compliance steps; initiating an independent fact-finding process to identify any misconduct and to analyse the causes of underlying conduct; setting up a separate board sub-committee to support the board on the matter at hand; assuring the further implementation of an effective anti-corruption and compliance program, founded on its existing code of conduct, governing documents and related policies; instigating other remedial actions as deemed relevant to the situation;
The measures taken by the Company are led by the board sub-committee which does not comprise any person subject to the charges or any investigation.”
On April 2nd, Petronor disclosed:
“PetroNor E&P ASA refers to previous market updates on the investigations by the National Authority for Investigation and Prosecution of Economic and Environmental Crime in Norway (“Økokrim”) and the U.S. Department of Justice (“DOJ”). The Company has been notified by the DOJ that based on the information that the DOJ has learned to date, and in the light of a recent executive order, its inquiry relating to the Company has been closed. The investigation initiated by Økokrim is still ongoing, and the Company continues to cooperate fully with this process. As previously set out, the timeline for the Økokrim investigation remains uncertain and beyond the Company’s control, but the Company would expect to get more clarity about the way forward during 2025.”
April 2nd
Since 2019, Foreign Corrupt Practices Act and related charges were pending against former Cognizant Technology Solutions executives Gordon Coburn and Steven Schwartz in connection with an alleged bribery scheme in India.
This February 25th post set forth the many reasons (legal and factual) why the enforcement action was unusual.
On April 2nd, the DOJ moved to dismiss the indictment against the individuals. (See here).
April 9th
As highlighted in this prior post, the DOJ filed a notice in a pending FCPA (and related) matter involving Smartmatic employees (and others) indicating that it “intends to proceed to trial.”
Since then the defendants have filed a motion to dismiss (see here) to which the DOJ has responded (see here).
April 11th
As highlighted in this prior post, the DOJ filed notices in two pending FCPA matters (U.S. v. Charles Hunter Hobson and U.S. v. Carl Zaglin et al) indicating that it “intends to proceed to trial.”
Mid-April
In November 2024, Digicel disclosed Foreign Corrupt Practices Act scrutiny (see here for the prior post).
Specifically, the company stated:
“We voluntarily disclosed to the US Department of Justice information related to possible violations of the US Foreign Corrupt Practices Act. We are cooperating fully with the DOJ and will continue to do so.”
In mid-April it was reported:
“Last week, Digicel was informed by the Fraud Section of the US Department of Justice’s Criminal Division, responsible for enforcement of the FCPA, that the government has closed its investigation into possible violations of the US Foreign Corrupt Practices Act and other laws in light of Executive Order 14209 and information the Department learned during the course of its investigation.”
“The Fraud Section had initiated its investigation in November 2024 after Digicel voluntarily self-reported results of its own internal reviews. Throughout the Fraud Section’s investigation, Digicel cooperated extensively and informed the Fraud Section that it had taken significant steps to assess and enhance its compliance program to ensure it is appropriately designed, resourced, tested and empowered to promote a culture of compliance,” they said.
Mid-April
As highlighted in this prior post, in mid-2022 Stericycle (an Illinois based medical waste disposal company) resolved a net $59 million parallel DOJ and SEC enforcement action concerning conduct in Brazil, Mexico, and Argentina.
The DOJ enforcement action involved a criminal information charging Stericycle with two counts of conspiracy to violate (1) the FCPA’s anti-bribery provisions, and (2) the FCPA’s books and records provision. The criminal charges were resolved via this deferred prosecution agreement pursuant to which Stericycle agreed to pay a net $35 million criminal penalty.
As a condition of settlement, the DOJ required Stericycle to engage an independent compliance monitor and the monitor was retained in November 2022 and the DPA was set to expire in November 2025.
The 2022 DPA specifically stated as follows: “in the event the Fraud Section finds, in its sole discretion, that there exists a change in circumstances sufficient to eliminate the need for the monitorship […] and that the other provisions of this Agreement have been satisfied, the Agreement may be terminated early.”
In mid-April, the DOJ moved to dismiss the action stating “Stericycle has fully met its disclosure obligations under the DPA, including full cooperation with the Government, implementation of an enhanced compliance program and procedures, and satisfaction of the terms of the provisions regarding self-reporting. Stericycle has also made significant changes to its business model to reduce its anticorruption risk profile, which greatly reduced the likelihood of recurrence of the misconduct charged in the Information.”
April 22nd
PT Telekomunikasi Indonesia, an Indonesia-based telecommunications company with American Depositary Receipts traded in the U.S. disclosed in this SEC filing.
“In October 2023, the Company received a document request from the U.S. Securities and Exchange Commission (“SEC”) as it relates to Telkominfra’s involvement in a project with the Indonesian Information and Telecommunication Accessibility Agency of the Ministry of Communication and Information (“BAKTI Kominfo”) regarding the provision of 4G Base Transceiver Station (“BTS”) infrastructure.”
The disclosure further stated:
“The SEC has since expanded its investigation to include accounting and disclosures issues relating to our revenue recognition and financial reporting practices and internal control over financial reporting, as well as public reports regarding certain Indonesian legal proceedings involving our Company, various subsidiaries and affiliates, and certain of our clients and suppliers. Beginning in May 2024, the Company also received additional requests for information from the U.S. Department of Justice (“DOJ”) focused on compliance with the U.S. Foreign Corrupt Practices Act (“FCPA”). Each U.S. authority is aware of the other agency’s investigation. The Company is cooperating with the U.S. authorities and has retained outside counsel to conduct an internal investigation into these issues. The Company cannot predict the duration, outcome or impact of these investigations on our business or whether they will have a material impact on the Company’s audited consolidated financial statements. Furthermore, in February 2025, the U.S. administration issued an executive order titled, “Pausing Foreign Corrupt Practices Act Enforcement to Further American Economic and National Security,” pausing the DOJ’s enforcement of the FCPA for 180 days (which period can be renewed an additional 180 days) until the U.S. Attorney General issues revised FCPA enforcement guidance. Due to the changing nature of and uncertainties related to the regulatory environment, we cannot be certain if or how the DOJ’s enforcement of the FCPA will change or its impact on the outcome of the DOJ’s investigations on our business. It is additionally uncertain whether our Company, affiliates, employees, agents, or contractors would meet the requirements of any individualized exception to the FCPA enforcement moratorium. Furthermore, while an investigation or inquiry by the SEC or DOJ should not be construed as an indication by the SEC or the DOJ that any violation of law has occurred, nor as a reflection upon any person, entity or security, publicity surrounding the foregoing, any SEC or DOJ enforcement action or settlement as a result of these investigations, even if ultimately resolved favorably for us, could have an adverse impact on our reputation, business, prospects, financial condition, and results of operations.
We are also cooperating with and have in certain instances self-reported various matters involving alleged or potential violations of Indonesian laws and regulations by our business units and subsidiaries and affiliates, including anti-corruption, alleged fraud, embezzlement and issues associated with accounts receivable, some of which are related to the above-described matters investigated by the SEC and the DOJ, to government authorities in Indonesia, including the Indonesian National Police, Public Prosecution Service and Corruption Eradication Commission. The length, scope or results of these self-disclosures and proceedings, or their impact on our results of operations, business or financial condition remain uncertain.
Any actual or perceived outcomes of these matters that are adverse to us could result in negative publicity, legal proceedings and/or regulatory actions that could damage our reputation, discourage current or potential business partners and customers from doing business with us, and subject us to claims, fines, damages and lawsuits, any of which could have material and adverse effects on our business, results of operations and financial condition.”
April 24th
Many FCPA (and related) enforcement actions have concerned Ecuador’s Seguros Sucre S.A. (“Seguros Sucre”), an alleged state-owned insurance company and “instrumentality” of the Ecuadorian government.
Among the enforcement actions were criminal charges announced by the DOJ in 2022 against Esteban Eduardo Merlo Hidalgo, Christian Patricio Pintado Garcia, and Luis Lenin Maldonado Matute.
Pintado was described as an Ecuadorian and Italian dual citizen and resident of Costa Rica and the General Manager of Intermediary Company. Pintado was described as an agent of a “domestic concern” in FCPA speak.
In summary fashion, the indictment alleged that the defendants and others conspired to “unlawfully enrich themselves by bribing Ecuadorian officials to obtain and retain business from Ecuadorian entities and instrumentalities controlled by the Ecuadorian government for themselves and others.”
According to the indictment, bribes were paid, directly or indirectly, “to a for the benefit of foreign officials in Ecuador, including Ribas (described as a citizen of Ecuador who served as the Chairman of Seguros Sucre and Rocafuerte [another alleged state-owned insurance company in Ecaudor] as well as an advisor to a then high ranking executive branch official in the Ecuadorian government), Foreign Official 1 (a citizen of Ecuador who served as an official of Seguros Sucre), Foreign Official 2 (a citizen of Ecuador who served as an official of Seguros Sucre), and Foreign Official 3 (an individual who served as an official of Seguros Sucre), to secure their assistance in awarding business to Intermediary Company, Reinsurance Broker 1 (a company based in the United Kingdom), and Reinsurance Broker 2 (a company based in the United Kingdom).”
According to the indictment, the defendants used Intermediary Company, and bank accounts controlled by the defendants and others in the U.S., Switzerland, Panama, and elsewhere to “promote the illegal bribery scheme and to conceal the nature and purpose of the illegal bribery scheme” by, among other things, using false contracts that described services that were not provided.
The indictment charged conspiracy to violate the FCPA’s anti-bribery provisions, a substantive violation of the FCPA’s anti-bribery provisions, conspiracy to commit money laundering, and four counts of engaging in transactions in criminally derived property.
In mid-April, Christian Patricio Pintado Garcia pleaded guilty to conspiracy to commit money laundering.
April 30th
In September 2023, Albemarle Corp. (a North Carolina based chemical company) resolved a Foreign Corrupt Practices Act enforcement action.
According to the DOJ: “[B]etween in or around 2009 and 2017, Albemarle, through its third-party sales agents and subsidiary employees, engaged in a conspiracy to pay bribes to government officials to obtain and retain catalyst business with state-owned oil refineries in three countries—Vietnam, Indonesia, and India …”.
The resolution included a DOJ non-prosecution agreement (pursuant to which the company agreed to pay a $98.2 million criminal penalty and $16.6 million in forfeiture) and an SEC administrative order (pursuant to which the company agreed to pay approximately $103.6 million in disgorgement and prejudgment interest).
The NPA had a three year term, but specifically stated that “in the event the [DOJ] finds, in their sole discretion, that there exists a change in circumstances sufficient to eliminate the need for the reporting requirement in [the NPA] and that the other provisions of this Agreement have been satisfied, the Agreement may be terminated early.”
On April 30th, Albemarle disclosed:
“In April 2025, the Company concluded its non-prosecution agreement with the U.S. Department of Justice (“DOJ”) prior to the end of its term in recognition that the terms of the agreement had been satisfied. The non-prosecution agreement was implemented in September 2023 following the Company’s self-reporting of a matter that occurred in 2018.”
May 2nd
In 2023, Stryker disclosed:
“We are currently investigating whether certain business activities in a foreign country violated provisions of the Foreign Corrupt Practices Act (FCPA) and have engaged outside counsel to conduct this investigation. We have been contacted by the United States Securities and Exchange Commission and United States Department of Justice and are cooperating with both agencies. At this time we are unable to predict the outcome of the investigation or the potential impact, if any, on our financial statements.”
On May 2nd, Stryker disclosed:
“We are currently investigating whether certain business activities in certain foreign countries violated provisions of the FCPA and have engaged outside counsel to conduct these investigations. We have been contacted by SEC and DOJ and certain other regulatory authorities and are cooperating with these agencies. On April 1, 2025 we were informed by the DOJ that it had closed its inquiry into potential FCPA violations without further action. At this time we are unable to predict the outcome of the remaining investigations or the potential impact, if any, on our financial statements.”
Bombardier disclosed:
“U.S. Department of Justice
On February 10, 2020, Bombardier received a letter from the U.S. Department of Justice (the “DOJ”) requesting the communication of documents and information regarding the ADY Contract [Azerbaijan Railways]. The Corporation’s internal review about the reported allegations is on-going but based on information known to the Corporation at this time, there is no evidence that suggests a corrupt payment was made or offered to a public official or that any other criminal activity involving Bombardier took place.
The DOJ also made requests regarding contracts in South Africa and Indonesia, as well as requests with respect to other sales of aircraft and services. Bombardier is cooperating with the DOJ’s requests. With respect to the Indonesia matter, in May 2020, the Indonesian Corruption Court convicted the former CEO of Garuda Indonesia (Persero) TBK (“Garuda”) and his associate of corruption and money laundering in connection with five procurement processes involving different manufacturers, including the 2011-2012 acquisition and lease of Bombardier CRJ1000 aircraft by Garuda (the “Garuda Transactions”). No charges were laid against the Corporation or any of its directors, officers or employees. Shortly thereafter, the Corporation launched an internal review into the Garuda Transactions, which is being conducted by external counsel.
On April 1, 2025, the DOJ informed the Corporation that following a review of the Indonesia and ADY Contract matters, and based on the information the DOJ had learned to date, it had closed both investigations.”
May 6th
In February 2022, Leidos (a Virginia headquartered information technology, engineering, and science solutions and services company that serves the defense, intelligence, homeland security, civil and health markets) disclosed that it was under FCPA scrutiny.
In a May 6th filing Leidos disclosed:
“As previously disclosed, the Company voluntarily self-reported to the Department of Justice and the Securities and Exchange Commission an investigation related to activities by its employees, third party representatives and subcontractors, raising concerns related to a portion of our business that conducts international operations, and has cooperated with both agencies. In December 2024, the Company received notification from the U.S. Department of Justice that it had closed its inquiry. While the Company has engaged with the SEC, the Company cannot anticipate the timing, outcome or possible impact of an SEC investigation, although violations of applicable laws may result in civil sanctions, including monetary penalties, and reputational damage.”
May 9th
The DOJ announced that Omar Ambuila (a Colombian national employed by the Colombian Tax and Customs Directorate) was sentenced to approximately 13 years in prison after pleading guilty to money laundering conspiracy for allegedly abusing his position over several years by accepting bribes paid by importers and exporters with interests overseen by Ambuila and the Colombian Tax and Customs Directorate. (See here).
May 12th
The DOJ Criminal Division released a “White Collar Enforcement Plan” and other policy documents. (See here). In the plan, the DOJ stated that it “prioritize investigating and prosecuting white-collar crimes in [ten] high-impact areas” including:
“Bribery and associated money laundering that impact U.S. national interests, undermine U.S. national security, harm the competitiveness of U.S. businesses, and enrich foreign corrupt officials.”
This post takes a closer look at a DOJ memo to Criminal Division Personnel with a subject line “Focus, Fairness, and Efficiency in the Fight Against White-Collar Crime.”
Mid-May
As highlighted in this prior post, in November 2018 the DOJ announced a Foreign Corrupt Practices Act and related enforcement action against Tim Leissner (the former Southeast Asia Chairman at Goldman Sachs) and others associated with Goldman Sachs for paying bribes to various Malaysian and Abu Dhabi officials in connection with 1Malaysia Development Berhad (1MDB), Malaysia’s state-owned and state-controlled investment development company. Leissner pleaded guilty and was ordered to forfeit $43.7 million as a result of his crimes.As highlighted in this prior post, in April 2022 Roger Ng (a former managing director at Goldman Sachs) was found guilty at trial of FCPA and related charges. Leissner testified at the trial.
In mid-May the DOJ and Leissner filed sentencing memo in advance of Leissner’s May 29th sentencing. (See here) and on May 29th Leissner was sentenced to two year in prison (see here).
June 4th
In an FCPA enforcement action pending since 2023 concerning an alleged bribery scheme involving Honduras officials, the DOJ filed a superseding information charging Aldo Nestor Marchena with conspiracy to commit money laundering. (See here). Marchena is expected to plead guilty and his trial has been cancelled.
June 4th
As highlighted in this prior post, Inotiv Inc. (an Indiana based “contract research organization (“CRO”) dedicated to providing nonclinical and analytical drug discovery and development services to the pharmaceutical and medical device industries and selling a range of research-quality animals and diets to the same industries as well as academia and government clients”) disclosed Foreign Corrupt Practices Act scrutiny concerning its importation of non-human primates from Asia.
The company recently disclosed: “the SEC provided notice to the Company, through the Company’s external counsel, that the SEC’s Division of Enforcement (the “Division”) has concluded its investigation and, based on the information available to the Division as of the date of its letter, the Division does not intend to recommend an enforcement action by the SEC against the Company.”
