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As highlighted in this prior post, in late 2016 the DOJ and SEC brought a Foreign Corrupt Practices Act enforcement action against Odebrecht S.A. (a Brazilian holding company) and Braskem S.A. (a Brazil-based petrochemical company with shares traded on the NYSE in which Odebrecht owned a majority of voting shares). The conduct at issue was egregious and largely centered on a business unit, the Division of Structured Operations, housed within an Odebrecht subsidiary that allegedly…
This prior post detailed the DOJ’s recent criminal indictment against Yanliang Li (a citizen of China and former Managing Director of a Chinese division of Herbalife) and Hongwei Yang (a citizen of China and former head of the External Affairs Department of a Chinese division of Herbalife). Yang was charged with one count of conspiracy to violate the FCPA and Li was charged with one count of conspiracy to violate the FCPA, one count of perjury and…
In enacting the Foreign Corrupt Practices Act, Congressional leaders stated that the FCPA “would end corporate bribery” and that the goal of the FCPA was “the elimination of foreign bribery.” Granted, politicians have long been known for making optimistic, aspirational statements, but 40+ years later there is more, not less, FCPA enforcement activity, and seemingly more, not less, exposure to corruption in the global marketplace. (For additional reading on this general topic – see here
As highlighted in this prior post, in early 2019 former Cognizant executives Gordon Coburn and Steven Schwartz were criminally and civilly charged by the DOJ / SEC in a Foreign Corrupt Practices Act enforcement action focused on obtaining planning permits in India. The prior post noted that if the defendants choose to put the DOJ/SEC to its burden of proof, disputed issues will likely focus on corrupt intent, obtain or retain business and the facilitating…
FCPA Professor has been described as “the Wall Street Journal concerning all things FCPA-related,” and “the most authoritative source for those seeking to understand and apply the FCPA.” Set forth below are the topics discussed this week on FCPA Professor. This post excerpts a recent speech by Assistant Attorney General Brian Benczkowski on corporate compliance and highlights his odd use of the term “deterrence.” Why have several alcoholic beverage companies resolved FCPA enforcement actions concerning…
In 2014, Avon resolved a Foreign Corrupt Practices Act enforcement based in large part on obtaining a direct selling permit in China. (See here for the prior post). In 2016, Nu Skin Enterprises resolved an FCPA enforcement action based in large part on obtaining a direct selling permit in China. (See here for the prior post). In 2017, Herbalife disclosed that it was under FCPA scrutiny concerning its conduct in China. With the company’s scrutiny…
In 2014, Avon resolved a Foreign Corrupt Practices Act enforcement based in large part on obtaining a direct selling permit in China. (See here for the prior post). In 2016, Nu Skin Enterprises resolved an FCPA enforcement action based in large part on obtaining a direct selling permit in China. (See here for the prior post). In 2017, Herbalife disclosed that it was under FCPA scrutiny concerning its conduct in China. With the company’s scrutiny…
The Foreign Corrupt Practices Act is a top priority federal statute of significant importance to all businesses and individuals engaged in international commerce. Yet, despite its significance, few FCPA enforcement actions are subjected to judicial scrutiny and most federal court judges go their entire career without an FCPA case being placed on their docket. However, Shira Scheindlin (who recently retired from being a judge on the U.S. District Court for the Southern District of New York) was an exception and…
The Foreign Corrupt Practices Act is a top priority federal statute of significant importance to all businesses and individuals engaged in international commerce. Yet, despite its significance, few FCPA enforcement actions are subjected to judicial scrutiny and most federal court judges go their entire career without an FCPA case being placed on their docket. However, Shira Scheindlin (who recently retired from being a judge on the U.S. District Court for the Southern District of New York) was an exception and…
Recently the Supreme Court agreed to hear Liu v. SEC in which the question presented is the following: “Whether the Securities and Exchange Commission may seek and obtain disgorgement from a court as “equitable relief” for a securities law violation even though this Court has determined that such disgorgement is a penalty.” (See here for the prior post). Given this development, the below guest post from Russ Ryan (King & Spalding) which originally was published on…