The FCPA Report

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

Recent Issue Headlines

Vol. 3, No. 24 (Dec. 3, 2014) Print IssuePrint This Issue

  • Top FCPA Enforcers Tout Voluntary Disclosure and Warn About International Cooperation; The Defense Bar Responds

    At what has become a traditional annual speech summarizing the year in FCPA developments, Kara Brockmeyer, Chief of the FCPA Unit of the Division of Enforcement of the SEC and Patrick Stokes, Deputy Chief of the Fraud Section of the Criminal Division of the DOJ, beat the government self-reporting drum, warned about increasing international anti-corruption enforcement and cautioned companies to re-evaluate confidentiality agreements they use during internal investigations.  The FCPA Report talked to prominent FCPA practitioners to get their take on this year’s speech at American Conference Institute's International Conference on the Foreign Corrupt Practices Act.  They said the significance of the speech lay in the tone and topics emphasized.  See our coverage of last year’s speech here and here.

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  • Caldwell and Ceresney Push Companies on FCPA Compliance, Cooperation and Self-Reporting

    Reinforcing familiar messages, senior government officials at the SEC and DOJ said the FCPA continues to be a priority and self-reporting and cooperation count a lot towards the mitigation of penalties.  Speaking at American Conference Institute’s recent International Conference on the Foreign Corrupt Practices Act, Assistant Attorney General Leslie R. Caldwell and the Director of the SEC Division of Enforcement Andrew Ceresney described the government’s focus going forward in each of their keynote speeches, including focusing on prosecuting individuals; the strengthening of the Kleptocracy Initiative; and increasing international cooperation.  The FCPA Report synthesizes their speeches here and also in this issue presents private practitioners’ takeaways from the government's "Year in Review" presentation at the conference.  See also “In Final Speech as Criminal Division Head, Mythili Raman Emphasizes DOJ’s Focus on Anti-Corruption Efforts, Highlighting Individual Convictions and Foreign Cooperation,” The FCPA Report, Vol. 3, No. 7 (Apr. 2, 2014).

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  • Strategies for Justifying Compliance and Ethics Budgets

    Functions that do not directly impact the bottom line may be neglected when a corporation plans its budget.  Compliance and ethics in particular can be seen as a necessary evil, rather than as an integral part of a successful business.  A recent presentation at the 2014 Compliance & Ethics Institute, sponsored by the Society of Corporate Compliance and Ethics, explored how a compliance and ethics department can demonstrate its value to an organization and make it easier to secure sufficient funds to operate effectively.  The program featured Julie K. Moriarty, General Manager, Training and Communications Strategy, and Jimmy Lin, Vice President of Product & Corporate Development at governance, risk and compliance consulting firm The Network, Inc.  See also “CEB Analyzes Key Compliance and Ethics Data,” The FCPA Report, Vol. 3, No. 20 (Oct. 8, 2014).

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  • OECD Launches “New Weapon” in Global Push to Fight Corruption

    The Organisation for Economic Cooperation and Development has released its first Report analyzing corruption cases of signatories of its Anti-Bribery Convention.  "For the first time, this Report measures and describes transnational corruption with reference to actual cases, rather than with statistics derived from econometrics, perception surveys or unsubstantiated allegations,” the OECD said.  Findings from the 427 cases dating from 1999 included: most bribes are of foreign public officials from wealthier countries; most are made through intermediaries; and most are paid by large companies with knowledge of senior management.  The OECD called the detailed Report a powerful tool to understand and combat corruption.  The release of the Report was accompanied by a panel discussion at OECD Headquarters.  

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  • Ten Strategies to Maximize the Tax Deductibility of Settlements (Part Two of Two)

    Tax structuring is a concept more often associated with business transactions than with legal settlements.  But in a recent presentation, Shearman & Sterling partner Lawrence M. Hill highlighted the fundamental role of tax in the net economics of legal settlements.  Informed tax structuring can dramatically reduce the dollars that go out the door in a legal settlement, and tax counsel can powerfully affect the economics of settlements.  In his presentation, Hill discussed ten specific strategies that companies can use to maximize the tax deductibility of legal settlements.  This article – the second in a two-part series – describes those ten strategies.  The first article in this series offered a comprehensive overview of the law governing taxation of settlements.

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  • The Nuts and Bolts of Anti-Corruption Hotlines: An Interview with Brandon Daniels, President of Managed Services, Clutch Group

    An effective hotline program is integral when it comes to a company’s ability to proactively handle compliance issues before they become endemic.  And hotlines can encourage internal reporting, affording a company time to investigate conduct before the government does.  As part of our interview series on hotlines, we talked to Brandon Daniels, president of Managed Services at Clutch Group, a litigation and compliance service provider.  He leads the organization’s strategy for all commercial and operational aspects of the company’s Litigation & Investigation, Compliance & Risk, and Corporate In-house Services.  Daniels discussed, among other things, methods of reporting, when to outsource the hotline, data privacy issues and handling cultural sensitivities.  See “The Nuts and Bolts of Anti-Corruption Hotlines: An Interview with Benjamin Haley of Covington & Burling,” The FCPA Report, Vol. 3, No. 19 (Sep. 24, 2014).

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  • 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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  • FCPA Attorneys Join Foley in New York and San Francisco

    Foley & Lardner recently announced the expansion of its Government Enforcement, Compliance & White Collar Defense Practice with two experienced FCPA attorneys: Jonathan Halpern in New York and Aaron Murphy in San Francisco.  Halpern joins from Bracewell & Giuliani, and previously led the Major Crimes unit as Assistant U.S. Attorney for the Southern District of New York.  Murphy joins the firm from Akin Gump, where he was a partner with the firm’s litigation group since January 2014.  For insight from the firm, see: The FCPA Report’s Conducting Effective Anti-Corruption Risk Assessments Series: Foley & Lardner LLP’s David Simon (Nov. 20, 2013); and “Risk-Based Solutions to Complying with Anti-Money Laundering, Export Controls, Economic Sanctions and the FCPA,” The FCPA Report, Vol. 3, No. 2 (Jan. 22, 2014).

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