The FCPA Report

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

Recent Issue Headlines

Vol. 3, No. 1 (Jan. 8, 2014) Print IssuePrint This Issue

  • A Guide to Detecting and Preventing Travel Agency Corruption (Part One of Three)

    Travel agency fraud is an increasing source of FCPA violations.  The recent GlaxoSmithKline investigation is a prime example of the risks travel agents can pose, especially in China but in other regions as well, and travel agent relationships will likely come under government scrutiny in the aftermath of the GSK matter.  Preventing corruption schemes using travel agents as the conduit for bribes can be difficult, however, as travel agency fraud can be easily hidden.  To assist companies in strengthening their compliance programs with regard to the use of travel agents, The FCPA Report is publishing a comprehensive three-part series on identifying and preventing corruption involving travel agents.  This, the first article in the series, details how travel agency fraud is accomplished and examines the motivations underlying such fraud.  The second article will outline industries that are at particular risk for travel agent-related corruption schemes, explain why travel agency fraud is so difficult to detect and provide tips for strengthening company control over travel agents.  The final article in the series will offer five concrete suggestions for preventing and detecting such fraud.  See also “Seven Lessons from China’s Bribery Investigation of GlaxoSmithKline,” The FCPA Report, Vol. 2, No. 16 (Aug. 7, 2013).

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  • A Perspective from the FCPA Defense Bar on Brockmeyer and Duross’ “Year In Review”: Interview with Danforth Newcomb, of Shearman & Sterling

    Companies operating internationally should pay close attention when government regulators candidly discuss the FCPA.  But how should a company interpret the government’s comments?  How much weight should be given to any individual regulator’s predictions of trends?  At ACI’s recent International Conference on the Foreign Corrupt Practices Act in Washington, D.C., 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 insight into the specific elements of FCPA enforcement that matter to leading regulators, as detailed in The FCPA Report’s two-part series.  See Part One of Two, Vol. 2, No. 24 (Dec. 4, 2013); Part Two of Two, Vol. 2, No. 25 (Dec. 18, 2012).  In an interview with The FCPA Report following that panel, Danforth Newcomb, a partner at Shearman & Sterling LLP and recognized expert on the FCPA, responded to the most pressing issues raised by Duross and Brockmeyer.  Newcomb’s no-nonsense approach to FCPA compliance and thoughtful dissection of the regulators’ comments enable in-house counsel, compliance officers and others to translate the regulators’ insights directly into actionable policies and procedures.

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  • How to Conduct an Anti-Corruption Investigation: Developing and Implementing the Investigation Plan (Part Two of Two)

    Once you have discovered that your company is the subject of an anti-corruption investigation – either one prompted internally or by the government – an investigation plan must be formulated and effectuated.  How can your company marshal resources most efficiently to ensure a thorough investigation?  What are the best methods for conducting interviews and collecting documents?  What should the company do in response to any issues identified by the investigation, and what collateral consequences should it be prepared to deal with?  While no two anti-corruption investigations are the same, 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.  This, the second article in the series, discusses, among other things, developing an investigative plan, strategies for witness interviews and document collection, ten best practices for cross-border investigations, managing the self-reporting calculus and handling remediation and other concerns at the end of the investigation.  The first article detailed typical triggers for investigations and explained ten crucial factors that a company should consider at the start of the investigation.

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  • Understanding and Acting on Brazil’s New Anti-Corruption Law

    At the end of January 2014, Brazil’s new anti-corruption legislation, aimed at combating bribery and bid-rigging, is set to take effect.  The law contains broad anti-corruption provisions, including strict liability for some misconduct, that have serious implications for companies that do business in Brazil, whether through subsidiaries, agents or joint ventures.  A recent program presented by international law firm Mayer Brown provided a comprehensive overview of the new law and insights on how anti-corruption compliance programs may be tailored to provide the greatest protection under that law.  This article provides the key takeaways from that program.  See also “The Essentials of the New Brazilian Anti-Corruption Legislation,” The FCPA Report, Vol. 2, No. 17 (Aug. 21, 2013); “How the New Brazilian Anti-Corruption Law Impacts U.S. Corporations,” The FCPA Report, Vol. 2, No. 21 (Oct. 23, 2013); and “The Changing Dynamics of Anti-Corruption Enforcement in Brazil,” The FCPA Report, Vol. 2, No. 23 (Nov. 20, 2013).

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  • ADM’s $54 Million Civil and Criminal FCPA Settlement: Numerous Bribery Schemes, Tax Evasion and the Effect of Cooperation

    Archer-Daniels-Midland Company (ADM) and various subsidiaries have resolved FCPA charges with the SEC and DOJ by paying $54 million and entering into a Non-Prosecution Agreement, a guilty plea and a consent decree related to the civil action. The company’s investigation of the various creative bribery schemes began in 2008 and the company’s cooperation played a role in a 33% fine reduction from the Sentencing Guidelines range and the lack of a monitor.  This article details the settlement and compares it to previous ones.  The ADM settlement was the final settlement of 2013, announced on December 20.  For details on the other 2013 corporate enforcement actions, see “FCPA Corporate Settlements of 2013: Details, Trends and Compliance Takeaways,” The FCPA Report, Vol. 2, No. 25 (Dec. 18, 2013).

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  • DOJ Clarifies Bounds of Humanitarian Aid Benefitting Foreign Officials in FCPA Opinion Release

    In its only Opinion Procedure Release of 2013, the DOJ weighed in on aid to relatives of foreign officials, giving guidance to a law firm partner who wants to personally pay the medical expenses of the daughter of a foreign official – a foreign official from a country with which the law firm does business.  See “SEC Investigation of JPMorgan Hiring Practices Demonstrates FCPA Nepotism Risks,” The FCPA Report, Vol. 2, No. 17 (Aug. 21, 2013).

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  • Akin Gump Adds FCPA and Corporate Investigations Partner Aaron Murphy in San Francisco

    On January 6, 2014, Akin Gump announced that Aaron G. Murphy has joined the firm in San Francisco as a partner in its litigation practice.  Murphy, who has authored “Foreign Corrupt Practices Act: A Practical Resource for Managers and Executives,” comes to Akin Gump from Latham & Watkins.  For insight from Akin Gump, see “Strategies for Preserving Data Before and During an FCPA Investigation,” The FCPA Report, Vol. 1, No. 12 (Nov. 14, 2012).

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  • ADM Names Chief Compliance Officer

    In the wake of its $54 million civil and criminal FCPA settlement, Archer-Daniels-Midland Company has named Ben Bard vice president and global chief compliance officer.

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