The FCPA Report

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

Recent Issue Headlines

Vol. 2, No. 25 (Dec. 18, 2013) Print IssuePrint This Issue

  • How to Conduct an Anti-Corruption Investigation: Ten Factors to Consider at the Outset (Part One of Two)

    What should you do when a subpoena arrives on your desk, asking about suspected bribe payments to foreign officials?  This two-part guest article series, written by Mara V.J. Senn and Michelle K. Albert, partner and associate, respectively, at Arnold & Porter LLP, walks through the anatomy of a typical investigation and identifies key considerations and best practices at each stage to aid both in-house and outside counsel.  The first article details typical triggers for investigations and explains ten crucial factors that a company should consider at the start of the investigation.  The second article in the series will discuss, among other things, formulating an investigative plan, best practices for cross-border investigations, the self-reporting calculus and concerns collateral to the investigation.  See also “How to Manage a Multi-National Anti-Corruption Investigation,” The FCPA Report, Vol. 2, No. 6 (Mar. 20, 2013).

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  • FCPA Corporate Settlements of 2013: Details, Trends and Compliance Takeaways

    FCPA enforcement got off to a slow start in 2013, with no official corporate FCPA settlements announced until the beginning of the second quarter.  Experts dove into the vacuum, speculating about whether the lack of settlements signaled a downturn in the government’s commitment to enforcement.  As the year progressed, however, enforcement picked up.  While the statistics were slightly down from 2012, as of press time, the DOJ and SEC had reached nine settlement agreements with corporations, including multiple DPAs and the SEC’s first-ever NPA.  The government assessed over $650 million in fines, disgorgement and penalties from the settling companies, with company settlements ranging from $1 million to a staggering $398 million.  This article discusses four compelling enforcement trends and summarizes the settlements and their compliance takeaways.  See also “Seven Key Trends That Are Changing the FCPA Enforcement and Compliance Landscape,” The FCPA Report, Vol. 2, No. 14 (Jul. 10. 2013).

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  • Charles Duross and Kara Brockmeyer Discuss What Matters to Regulators When Negotiating FCPA Settlements (Part Two of Two)

    What are FCPA regulators and prosecutors looking for during company presentations?  How can a company shorten the time from its first meeting with the government to the resolution of its FCPA issues?  Charles Duross, Deputy Chief of the Fraud Section of the Criminal Division of the DOJ, and Kara Brockmeyer, Chief of the FCPA Unit of the Division of Enforcement of the SEC, provided detailed insight at a recent ACI International Conference in Washington, D.C. on what regulators are looking for, discussing the government’s FCPA charging philosophies, investigative techniques and enforcement priorities, and dispensing advice about how companies can avoid or decrease FCPA penalties.  Among other things, the regulators highlighted the government’s continued focus on problematic travel and entertainment, warned that the DOJ and SEC will pursue matters involving charitable donations and commercial bribery, and provided tips for expediting government investigations and conducting effective settlement negotiations.  The first part of this article series contained insight from Duross and Brockmeyer about five micro trends within the overarching trend of increased FCPA enforcement: prosecution of individuals, SEC administrative proceedings focused on FCPA violations, increasing coordination between global regulators on anti-corruption matters, the persistence of use of corporate monitors following FCPA settlements and the continued FCPA risk posed by use of third parties.  See also “Top Government and Private FCPA Practitioners Discuss Global Enforcement, Self-Reporting, Facilitation Payments, M&A Due Diligence, Jurisdiction and NPAs,” The FCPA Report, Vol. 2, No. 11 (May 29, 2013).

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  • What Private Fund Managers Must Know About FCPA Enforcement

    “Hedge funds are under the FCPA microscope now,” Lauren Resnick, a partner at Baker Hostetler LLP, warned at a recent panel discussing the corruption risks that private fund managers, including hedge fund managers, face.  She and her colleague Marc Kornfeld, along with James “Bucky” Canales, Chief Operating Officer of StoneWater Capital, detailed how the FCPA affects the private funds industry and what hedge fund managers and others should be doing to minimize the risk of an FCPA violation, or the violation of other global anti-bribery laws.  See also “Buyer Beware: Understanding and Mitigating Parent Company FCPA Liability in the Context of Private Equity Acquisitions,” The FCPA Report, Vol. 2, No. 15 (Jul. 24, 2013).

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  • Bilfinger Settlement Highlights the Long Tail and Loose Jurisdictional Requirements of Criminal FCPA Charges

    Bilfinger SE has entered into a Deferred Prosecution Agreement with the DOJ to resolve charges that it and Houston-based Willbros Group paid more than $6 million in bribes to Nigerian officials to retain gas contracts related to the Eastern Gas Gathering System Project (EGGS).  Bilfinger agreed to pay a $32 million fine.  Willbros settled with the DOJ in 2008, paying $22 million to resolve charges related to EGGS (as well as charges relating to a bribery scheme in Ecuador).  One Willbros consultant was sentenced in May and several others pleaded guilty.  One former Willbros executive is currently a fugitive.  This article summarizes the case, extracting the compliance takeaways (including the attenuated U.S. nexus, the long tail of the investigation and the hybrid monitorship), and including a chart comparing the compliance requirements in the DPA to past corporate FCPA settlement agreements.  See “A Comparison and Examination of DOJ Compliance Program Requirements in FCPA Settlement Agreements,” The FCPA Report, Vol. 2, No. 19 (Sep. 26, 2013).

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  • Key Takeaways from the 2013 Office of the Whistleblower Report

    It’s been two years since the Dodd-Frank Whistleblower Program – which gives whistleblowers the opportunity to obtain a financial reward – was implemented.  There have been limited rewards under the program (though one reward was certainly noteworthy in its size, $14 million), but whistleblower tips have increased, as many have expected, forcing companies to take note.  The 2013 Annual Report to Congress on the Dodd-Frank Whistleblower Program, recently issued by the SEC, provides information on the tips received and the awards.  Some experts say the Report is too vague and more information is needed for companies to fully understand how to best handle the new law.  This article summarizes the key takeaways from the Report and includes insight from a recent webinar hosted by Securities Docket featuring F. Joseph Warin, partner at Gibson Dunn LLP, and Jay Perlman, Director at Navigant Consulting, Inc.  See “Top FCPA Practitioners Share Strategies for Detecting, Preventing and Responding to Whistleblower Allegations,” The FCPA Report, Vol. 2, No. 13 (Jun. 26, 2013). 

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  • The FCPA Report Will Not Publish on January 1, 2014

    Please note that The FCPA Report will not publish its regularly scheduled issue on January 1, 2014.  It will instead publish the following week, on January 8, and resume its regular biweekly schedule thereafter.

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