The FCPA Report

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

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By Topic: Roundups

  • From Vol. 4 No.18 (Sep. 9, 2015)

    The Collateral Effects of FCPA Violations: Recent Developments in Civil Cases

    For a publicly traded corporation, an FCPA investigation, or even settlement, may be only the beginning of the company’s anti-corruption woes.  In recent years, news reports of corruption have launched numerous shareholder securities cases and derivative litigations.  The risks associated with collateral FCPA actions are well known, but recent developments in several key cases further illustrate how collateral actions can take on a life of their own, creating years of litigation and costing companies millions of dollars beyond any penalties paid to the government.  See “How to Anticipate and Manage Collateral Litigation after an FCPA Investigation Becomes Public,” The FCPA Report, Vol. 2, No. 17 (Aug. 21, 2013).

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  • From Vol. 4 No.15 (Jul. 22, 2015)

    International Anti-Corruption Enforcement Roundup

    An executive at Chinese online giant Alibaba is swept up in a bribery probe relating to his work at Tencent, the company’s top competitor.  Swiss regulators travel to Guinea to continue their investigation of Israeli billionaire Beny Steinmetz’s 2008 acquisition of rich iron-ore deposits.  The U.S. Chamber of Commerce’s Center for Capital Markets Competitiveness releases a report calling for reforms in SEC enforcement actions.  The SEC announces a $3 million whistleblower payment – its third highest to date – and launches a civil investigation to determine whether publicly traded companies violated the FCPA books and records provisions in relation to the FIFA corruption scandal.  The DOJ seeks a $12.5 million forfeiture in a civil suit against the Filipina “pork barrel scam” businesswoman.  China seeks to curb “unhealthy tendencies” in medical procurement and sales and medical services.  Brazil begins an investigation into whether former president Lula da Silva used his influence abroad to benefit Brazilian engineering firm Odebrecht.  Thailand beefs up its anti-graft penalties.

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  • From Vol. 4 No.14 (Jul. 8, 2015)

    International Anti-Corruption Enforcement Roundup

    The DOJ seeks forfeiture of $34 million in the Griffiths Energy bribery case.  Indonesia jails six for collusion related to medical equipment purchases in Simalungun.  A Braskem shareholder sues the Brazilian-listed petrochemicals company in Manhattan federal court.  Ecuador and Panama announce investigations into Odebrecht contracts.

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  • From Vol. 4 No.13 (Jun. 24, 2015)

    International Anti-Corruption Enforcement Roundup

    The SEC’s FCPA Unit concludes its probe of Gold Fields and will not recommend pursuing enforcement action to the Commission.  Four men are sentenced to prison for corruption at City of Edinburgh Council.  China unveils its new anti-corruption app to encourage whistleblowers.  In Brazil, allegations by Rio de Janeiro prosecutors’ office prompted Odebrecht investigation and Eletrobras hires Hogan Lovells to assess potential corruption.

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  • From Vol. 4 No.12 (Jun. 10, 2015)

    International Anti-Corruption Enforcement Roundup

    The SEC has declined to pursue FCPA charges against Net1.  The GSK investigator imprisoned in China for two years is released.  China imposes criminal bribery background checks on bidding and tendering.  Three defendants charged in the U.K. with conspiracy to bribe Nigerian tax officials are acquitted.  In the Petrobras scandal, Brazilian prosecutors have notified the DOJ of evidence that at least four foreign companies paid bribes to secure contracts.  And, Brazilian authorities say that construction companies under investigation in the Petrobras corruption probe are allowed to participate in Brazil’s new infrastructure concession package.

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  • From Vol. 4 No.11 (May 27, 2015)

    International Anti-Corruption Enforcement Roundup

    BNY Mellon discloses that it received a subpoena regarding government hires.  Hyperdynamics says that the DOJ has declined to prosecute it for FCPA violations.  A sixth Alstom UK employee is charged with corruption.  The Price Association of China is criticized for accepting funds from foreign pharmaceutical firms.  The Chinese state media accuses foreign medical equipment makers of using illegal promotional tactics.  Petrobras faces several new lawsuits in the U.S. and PwC warns Petrobras of gaps in its internal control system. 

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  • From Vol. 4 No.10 (May 13, 2015)

    International Anti-Corruption Enforcement Roundup

    The U.K. closes a seven-year energy-linked corruption probe after a guilty plea.  A former Alstom director faces U.K. corruption charges.  Chinese search giant Baidu begins an internal graft probe of top officials.  China denies it is investigating Siemens, despite Reuters and Bloomberg reports.  Indonesia’s KPK grills ex-democratic party treasurer’s brother in Bali medical equipment procurement case.  Guatemala’s vice president resigns after bribery allegations.  In Brazil: Petrobras suppliers implicated in the corruption probe expect to receive $8.1 billion from ongoing contracts.  Brazil’s anti-bribery agency is expected to enter leniency agreements in the second quarter of 2015 with firms implicated in the Petrobras probe.  Petrobras executives’ trial is set for June.

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  • From Vol. 4 No.9 (Apr. 29, 2015)

    International Anti-Corruption Enforcement Roundup

    United Technologies receives a second subpoena in SEC bribery probe.  The Indonesian corruption court is set to begin hearings in the Innospec bribery case.  Alstom Network and its employee face more corruption charges in the U.K.  A Malaysian lawmaker asks corruption watchdog to probe possible bribery involving Alstom, Sarawak Energy.  The Thai anti-graft body recommends the death penalty for corrupt officials.  Indonesian attorney accuses 13 over collusion in air analysis device tender.  The Indonesian Traffic Corps former deputy chief is jailed for five years in driving simulator procurement case.  A North Sumatra University dean is accused of facilitating collusion to award medical equipment contracts.  In Brazil: Petrobras reports a $7.1 billion net loss; Brazil’s anti-bribery agency is authorized by audit court to enter leniency agreements with Petrobras suppliers; and Petrobras seeks to become “joint accuser” in corruption proceedings.

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  • From Vol. 4 No.8 (Apr. 15, 2015)

    International Anti-Corruption Enforcement Roundup

    China says the construction, auto and medical sectors are hotspots for commercial bribery.  PetroTiger CEO’s trial is delayed.  Petrobras probe to widen into other company departments.  The Brazilian anti-bribery agency allegedly postponed proceedings against a Petrobras supplier until after President Rousseff’s reelection.  The AP1 Fund plans to sue Petrobras separately from class action.  Brazil’s Senate is expected to set up an investigative committee into bribery scheme to erase tax debts.

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  • From Vol. 4 No.7 (Apr. 1, 2015)

    International Anti-Corruption Enforcement Roundup

    Direct Access Partner’s CEO and managing director are sentenced to four years for their roles in an international bribery scheme.  A former Bechel executive is jailed for Alstom bribes.  InBev discloses FCPA investigations of Indian affiliates by the DOJ and SEC.  A London jury finds four News Corp. journalists not guilty of corruption conspiracy charges.  Executives of Swiss Steel Group Duferco are detained in Belgium.  Japan’s Shibukawa City reforms its tendering system after the arrest of a former deputy mayor in a bribery case.  In Brazil: President Rousseff signs a decree regulating anti-bribery law; Bilfinger follows up on suspected compliance violations; Brazilian banks and firms are accused of paying bribes to cancel tax debts.  And in the ongoing Petrobras matter: the Brazilian congress postpones a vote on a bill preventing Petrobras from holding “simplified” bids; a Setal executive says firms simulated competition in Petrobras tenders; and Brazilian agencies clash over leniency agreement rules. 

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  • From Vol. 4 No.6 (Mar. 18, 2015)

    International Anti-Corruption Enforcement Roundup

    Six Ecopetrol employees have been arrested in Colombia for PetroTiger bribes.  A former executive at Australia’s largest bank has been charged with bribery.  China’s supreme court and supreme prosecutor claim the GSK anti-bribery case was a major achievement for 2014.  A mid-level PwC manager has been questioned in an Indian corporate espionage probe.  In Brazil: The anti-bribery agency is expected to start proceedings against seven other Petrobras suppliers; Brazil recovers $44.5 million in bribes from former Petrobras manager; Petrobras assembles a task force to include bribery losses in its financial results; and President Rousseff and her predecessor have been cleared of corruption charges.  For more on Petrobras, see “History and Consequences of the Extensive Petrobras Scandal,” above.

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  • From Vol. 4 No.5 (Mar. 4, 2015)

    International Anti-Corruption Enforcement Roundup

    General Cable reserves $24 million for potential FCPA disgorgement.  Texas-based Flowserve self-reports a potential FCPA violation.  Akami Technologies discloses its internal investigation of FCPA violations. Australia investigates alleged bribes involving a Sydney-based construction company with alleged ties to terrorists.  Two suspects are detained in the Innospec bribery case.  The Indonesian Corruption Watch reports ongoing widespread corruption in government procurement.  The South Korean health ministry suspends 180 doctors accused of taking rebates.  A Thai corruption bill would curb the statute of limitations, thereby increasing anti-graft body’s power.  In the Petrobras scandal: the Brazilian attorney general’s office warns about leniency agreements; new cartel evidence is found; and prosecutors seek $1.56 billion in damages in five abuse of office suits. 

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  • From Vol. 4 No.4 (Feb. 18, 2015)

    International Anti-Corruption Enforcement Roundup

    Teva discloses possible FCPA violations.  The Eleventh Circuit affirms a money-laundering conviction in the Haiti Teleco case.  U.K.’s Serious Fraud Office secures its first contested convictions for overseas bribery.  Indonesia’s KPK re-examines suspects in the Innospec bribery case.  Chinese antitrust chief emphasizes supporting innovation with competition enforcement.  The World Bank bans an Indian company for alleged fraudulent activities and agrees to work with Brazil’s Attorney General to advance cooperation on corruption risk management.  The Petrobras debacle continues to unfold: The company recently named a new CEO and announced that it will revise its method of calculating corruption-related losses.  Meanwhile, the nine largest U.S. holders of Petrobras ADRs claim to have lost more than $50 million each from the investment.

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  • From Vol. 4 No.3 (Feb. 4, 2015)

    International Anti-Corruption Enforcement Roundup

    The DOJ has declined to bring FCPA charges against News Corporation and 21st Century Fox in the phone-hacking scandal.  BNY Mellon receives warning of an impending SEC FCPA enforcement action. Sony has confirmed that it is investigating bribes in India.  An Indonesian corruption watchdog continues its investigation into Innospec bribes and the Jakarta government warns contractors to play fair when bidding on public sector contracts.  China is picking up its enforcement against corruption in publishing and entertainment.  And in the Petrobras case: Current CEO Graca Foster and the entire board will reportedly be replaced; Rio de Janeiro court freezes former Petrobras CEO's assets while officials examine his tax and banking records; Lava Jato prosecutors announce that at least $814 million has been embezzled from Petrobras; allegations emerge that Petrobras’ former services director received bribes through five companies; and construction company Odebrecht is implicated in the Abreu e Lima probe.

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  • From Vol. 4 No.2 (Jan. 21, 2015)

    International Anti-Corruption Enforcement Roundup

    Authorities in Indonesia continue their anti-corruption investigation of Innospec.  In the Petrobras case: Politicians are unlikely to be charged soon but construction companies involved in the scandal are expected to be.  Brazilian prosecutors say corruption at Petrobras may be ongoing, seek witnesses in five countries and uncover evidence that Petrobras approved Samsung Drill Ship contracts without a bidding process.  Nortek announces internal FCPA investigation of its Chinese subsidiary.  A Korea Fair Trade Commission official has been charged with bribery for allegedly turning a blind eye in a cartel case.  Singapore plans to step up its anti-corruption enforcement efforts.  German automotive parts and military technology group Rheinmetall admits to bribing Greek officials to buy tanks.  Leaked Sony emails disclose SEC subpoena regarding possible FCPA violations in China.  U.S. regulators are investigating alleged bribes by private equity firms to foreign officials.

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  • From Vol. 3 No.25 (Dec. 17, 2014)

    International Anti-Corruption Enforcement Roundup

    SNC-Lavalin recoups $13 million in compensation for bribery.  German prosecutors raid Airbus offices.  A former Bechtel executive admits to taking kickbacks.  A former top Chinese official is arrested in connection with a variety of charges, including taking bribes.  An amendment to the Malaysian corruption law urges corporate responsibility for employee corruption.  Multiple new developments in the Petrobras matter including potential indictment of the former CEO, new U.S. lawsuits and the Brazilian Attorney General recommending the replacement of the board.  The head of Brazil’s anti-bribery agency resigns.  

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  • From Vol. 3 No.24 (Dec. 3, 2014)

    International Anti-Corruption Enforcement Roundup

    China amends anti-bribery laws after the GSK case.  Venezuela’s leader approves new anti-corruption measures.  The former PetroTiger executive facing FCPA charges in New Jersey challenges the “foreign official” status of the Colombian employee he allegedly bribed.  The Indonesian Chamber of Commerce wants stronger and clearer anti-corruption laws.  Bribes are endemic in the oil business in southern Thailand, officials say.  Developments in the Petrobras investigation include: evidence that the bribery extended to Petrobras’ shipbuilding and leasing contracts; evidence that Brazilian lawmakers received bribes through Swiss banks; nine new probes of current and former Petrobras employees; and a subpoena from the SEC.

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  • From Vol. 3 No.23 (Nov. 19, 2014)

    International Anti-Corruption Enforcement Roundup

    The DOJ seeks forfeiture of the bribe it says was paid to Chad’s ambassador to Canada and the U.S.  Officials in Spain raid government offices in over a dozen provinces in a corruption crackdown.  The Canadian government is pressured to amend its new anti-corruption regulations.  Walmart fires a manager in India amid a bribery probe.  Vietnam reviews its hospitals’ Bio-Rad purchases after the U.S. enforcement action.  China blacklists a medical equipment firm for bribery.

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  • From Vol. 3 No.23 (Nov. 19, 2014)

    Petrobras Probe Updates

    Mass corruption allegations against oil and gas giant Petrobras have caused a political headache for Brazil’s president, Dilma Rousseff (formerly chair of Petrobras’ board), and has sent the company’s share prices plunging 35% in the last month.  It may be the first test of the new Lei Anticorrupção (Brazil Anti-Corruption Act).  See “Navigating Compliance Challenges After the Debut of Brazil’s New Anti-Corruption Law,” The FCPA Report, Vol. 3, No. 3 (Feb. 5, 2014).  The scandal has had global reach, with related investigations extending beyond Brazil to the U.S. and the Netherlands.  Selected recent developments follow, compiled with help from our sister publication, Policy and Regulatory Report (PaRR).

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  • From Vol. 3 No.22 (Nov. 5, 2014)

    International Anti-Corruption Enforcement Roundup

    The OECD Working Group releases its reports about Turkey and France, scolding both countries for non-compliance with the Anti-Bribery Convention.  Oracle denies bribery allegations in India.  The SFO will formally investigate British retail giant Tesco.  China says it probed eleven government officials for corruption this year and that it will set up an anti-corruption office.  There were various developments in the Petrobras case in Brazil.  A Thai anti-corruption agency finds evidence of collusion in a football field project involving 358 schools.  And, Pew finds that high-risk countries are full of people who say they do not think bribes are important.

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  • From Vol. 3 No.21 (Oct. 22, 2014)

    International Anti-Corruption Enforcement Roundup

    Oracle’s Indian subsidiary is reportedly facing new claims it bribed officials to obtain contracts.  “Teddy” Obiang, Vice President of Equatorial Guinea, has agreed to relinquish his Malibu mansion, Ferrari and Michael Jackson memorabilia, among other things, in a deal with the DOJ as part of its Kleptocracy Asset Recovery Initiative.  More accusations surface in the Petrobras corruption case in Brazil.  The former PetroTiger CEO says the U.S. hurt his chance for a fair bribery trial by allowing a key witness to leave the country.  The defendant in the Nagasaki pumping plant bribery case, a former mayor, claims innocence.  The mayor of Zagreb, Croatia was arrested on bribery charges with associates.  Two Thai companies are being investigated over collusion and corruption on a school construction project.

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  • From Vol. 3 No.20 (Oct. 8, 2014)

    International Anti-Corruption Enforcement Roundup

    The Supreme Court refuses to examine key FCPA definitions.  HP may face ten-year ban in Canada as a result of bribery charges.  BHP Billiton announces it may be close to resolving government anti-corruption probe.  Indonesian corruption watchdog grills five medical suppliers over procurement tender in Banten.  A former Petrobras director accuses a Brazilian construction company of paying $23 million in bribes.  Sanofi informs SEC and DOJ of allegations that its employees bribed healthcare workers in East Africa and the Middle East.  U.S. regulators close the Agilent FCPA investigation.  Eni allegedly paid $1.1 billion to bribe Nigerian politicians, intermediaries and others.  A former SNC-Lavalin executive is convicted of bribery in Switzerland.  Avon wins dismissal of follow-on FCPA litigation.  General Cable discloses investigation of payments in Angola, Thailand and India.  Brazil charges eight Embraer employees with bribery.

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  • From Vol. 3 No.19 (Sep. 24, 2014)

    International Anti-Corruption Enforcement Roundup

    The SEC announces a $30 million award to a foreign whistleblower.  HP’s Russian subsidiary pleads guilty and agrees to pay $58.8 million in connection with FCPA violations in Russia.  U.K. Court of Appeal upholds two individual convictions in the Innospec bribery case.  India lifts its military procurement ban on Rolls Royce, Finmeccanica and other companies.  A Dentons Canada lawyer is charged with extortion and obstruction of justice in connection with the SNC-Lavalin bribery case.  Milan prosecutors investigate Eni CEO for bribery.  Newly-leaked emails suggest a pattern of corrupt behavior by senior Leighton employees.  The ex-director of Brazilian state-run Petrobras admits to having received the equivalent of $634,000 in bribes.  Seoul’s metropolitan police have uncovered evidence to support allegations that Pacific Pharma has provided rebates to doctors.

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  • From Vol. 3 No.18 (Sep. 10, 2014)

    International Anti-Corruption Enforcement Roundup

    Morgan Stanley’s Chinese joint venture denies that the company is under investigation in China over a possible connection between the company’s bond underwriting and the hiring of the son of a former Chinese official.  The DOJ closes its FCPA inquiry into Image Sensing’s Polish operations.  GSK's Chinese business practices have been investigated by the DOJ and SEC as far back as 2012.  Walmart’s FCPA-related spending is decreasing.  For the first time ever, a compliance officer receives a whistleblower award from the SEC.  The Brazilian presidential election is rocked by allegations of an oil corruption scandal.  Finmeccanica is barred from future contracts in India.  Japan’s FSA orders KB Kookmin Bank to suspend new deals after compliance violations.  Volkswagen is being investigated by a Chinese watchdog.  Fake companies abound in procurement bidding in Indonesia.  The DOJ announces that it seized $500,000 in corrupt assets tied to the former President of Korea.

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  • From Vol. 3 No.17 (Aug. 20, 2014)

    International Anti-Corruption Enforcement Roundup

    GSK investigators receive unexpectedly harsh sentences in China, according to their lawyers.  Drilling company Layne Christenson gets a declination from the DOJ and Cubist Pharmaceuticals discloses an FCPA investigation by the DOJ and SEC into payments made in Africa.  The Second Circuit rules that the Dodd Frank anti-retaliation provisions do not apply to foreign workers acting abroad, upholding the dismissal of a Chinese whistleblower's retaliation case against a Siemens subsidiary.

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  • From Vol. 3 No.16 (Aug. 6, 2014)

    International Anti-Corruption Enforcement Roundup

    In this issue, we cover the sentencing of four Innospec executives in the U.K. for bribes in Indonesia and Iraq, and the Wells Notice issued to Cobalt International Energy by the SEC regarding an FCPA investigation into activity in Angola.  Plus, more anti-corruption enforcement activity against Alstom: bribery charges will reportedly be leveled against ex-employees by the U.K.’s SFO and in Brazil, Sao Paulo prosecutors allege Alstom bribed an ex-government official through a Swiss account.  Also, developments in two FCPA-related individual cases in the U.S. – French citizen Frederic Cilins gets 24 months in prison for obstructing an FCPA investigation and the former BizJet president pleads guilty to bribing officials in Mexico and Panama.  The South Korean government sets up a task force to stamp out corruption.  And, adding to GSK’s corruption troubles: a whistleblower alleges the company paid bribes in Syria.

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