The FCPA Report

The definitive source of actionable intelligence covering the Foreign Corrupt Practices Act

Articles By Topic

By Topic: Sentencing

  • From Vol. 5 No.21 (Oct. 26, 2016)

    Dirty Dealings in Africa Result in SEC and DOJ Settlements for Och-Ziff and Two Executives

    After months of speculation, the SEC and DOJ recently announced a settlement with Och-Ziff Capital Management and two of its employees for more than $400 million. The settlement papers indicate that Och-Ziff’s varied dealings in Africa – both in terms of procuring investors and making private equity investments – were characterized by a nonchalant attitude toward compliance. The company routinely worked with intermediaries with questionable backgrounds and known ties to government officials. Once deals were made, little effort was put into ensuring that funds were spent appropriately. According to a team of attorneys at MoloLamken, the settlement is a “significant development” in both the FCPA and hedge fund worlds. “For a number of years, DOJ and the SEC have indicated that their FCPA enforcement efforts are focused on private equity and hedge funds,” they said, “but the Och-Ziff settlement is the first major move in that direction. And it’s a significant one: the case represents one of the largest FCPA settlements in history against one of the world’s largest hedge funds.” A companion article in our next issue will distill further compliance takeaways from the case. See “Addressing Corruption Risks and Compliance Strategies for Co-Investors (Part One of Two)” (Jun. 24, 2015); Part Two (Jul. 8, 2015). 

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  • From Vol. 5 No.15 (Jul. 27, 2016)

    Serious Consequences for Former Louis Berger Executives Highlight Increasing Individual FCPA Risk

    In July 2015, Louis Berger International, an engineering, architecture and construction management consulting firm, entered into a deferred prosecution agreement with the DOJ and agreed to pay $17.1 million to settle allegations of corruption in Asia. One year later, several of the individuals involved in the bribery have been sentenced based on their guilty pleas and Louis Berger is seeking to recoup its settlement-related losses from one of those individuals in a civil suit. “The LBI complaint highlights yet another avenue for potential exposure for individuals involved in improper business activities,” explained Ted Kang, a partner at Alston Bird. See “No Discount and a Three-Year Monitor: Dissecting LBI’s $17.1 Million FCPA Settlement” (Jul. 22, 2015).

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  • From Vol. 2 No.4 (Feb. 20, 2013)

    How Can Individual Defendants Use Strategic Cooperation to Mitigate FCPA Sentences?

    Individuals at risk for FCPA charges can benefit from approaching and cooperating with the government as early as possible.  Working from recent DOJ sentencing memoranda, this article focuses on how actual and potential individual FCPA defendants (and their counsel) can approach cooperation in a way that is likely to lead to reduced sentences.  In particular, this article focuses on the content, timing and required utility of cooperation.

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