The FCPA Report

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

Recent Issue Headlines

Vol. 4, No. 7 (Apr. 1, 2015) Print IssuePrint This Issue

  • How to Build a Compliant Culture and Stronger Company from the “Middle” (Part One of Three)

    Tone at the top has been a compliance talking point for years, but as compliance programs mature, tone at the top is no longer enough.  “A tone at the top approach alone is not likely to reach as effectively the groups of employees who make real decisions that are going to affect the business,” Jennifer Newstead, a partner at Davis Polk & Wardwell, told The FCPA Report.  To effectively spread the compliance message, companies must also focus on tone in the middle.  This multi-part series will assist companies in evaluating their current culture and enhancing their tone in the middle to strengthen their compliance program.  This, the first article in the series, will discuss who the “middle” actually is, why tone in the middle matters and the challenges of creating a compliant tone.  Future articles will specify: how a company should prepare middle managers to spread the compliance message, actions that middle managers can take to emphasize compliance, and strategies for monitoring tone.  See also “Five Tools Every Chief Compliance Officer Needs for Effective FCPA Compliance: Title, Authority, Access, Budget and Culture (Part Two of Two),” The FCPA Report, Vol. 2, No. 8 (Apr. 17, 2013) (discussing tone at the top).

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  • Experts Discuss the Crucial First 48 Hours of an Internal Investigation and Beyond

    When a company uncovers an anti-corruption problem, it must be ready to react quickly.  “The first 48 hours of any investigation are often critical to the success of that investigation,” Andrew Foose, Vice President of Advisory Services at NAVEX Global, said during a panel at the recent Global Ethics Summit, hosted by Ethisphere Institute and Thomson Reuters.  Foose and the other panelists, William Jacobson, a partner at Orrick, Herrington & Sutcliffe; Adam Briggs, Regulatory Compliance & Ethics Attorney for United Parcel Service; and Benjamin Gruenstein, a partner at Cravath, Swaine & Moore, detailed strategies for those crucial first days and also discussed long-term best practices for conducting effective investigations.  See also “How to Conduct an Anti-Corruption Investigation: Ten Factors to Consider at the Outset (Part One of Two),” The FCPA Report, Vol. 2, No. 25 (Dec. 18, 2013); “Developing and Implementing the Investigation Plan (Part Two of Two),” Vol. 3, No. 1 (Jan. 8, 2014).

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  • From Princelings to SWFs: All-Star Panel Dissects Corruption Issues Affecting Wall Street

    For financial institutions and the private funds industry, corruption risks lurking in common activities are coming to the forefront.  At the New York City Bar, a distinguished panel of former prosecutors and industry experts offered insights into those evolving risks (including hiring practices and sovereign wealth funds), the enforcement landscape and how companies can strengthen their compliance programs in response.  The panel was moderated by John D. Buretta, a partner at Cravath, Swaine & Moore and former Assistant U.S. Attorney and Principal Deputy Assistant Attorney General at the DOJ.  The other speakers were Sarah Coyne, counsel at Debevoise & Plimpton and a former Assistant U.S. Attorney in the Eastern District of New York and Chief of the Business and Securities Fraud Section; Kelly B. Kramer, a partner at Mayer Brown; Claudius O. Sokenu, a partner at Shearman & Sterling and former SEC Senior Counsel; and Linda Chatman Thomsen, a partner at Davis Polk & Wardwell and former SEC Director of Enforcement.  See also “Friendly Relations? When Nepotism May Violate the FCPA,” The FCPA Report, Vol. 1, No. 10 (Oct. 17, 2012).

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  • Learning from the Extension of Biomet’s DPA

    Days before its March 2012 deferred prosecution agreement was about to expire, medical device manufacturer Biomet announced that the DOJ was extending the term of its agreement for another year amidst allegations of further bribery in Mexico and Brazil.  Biomet, whose $13.35 billion merger with Zimmer Holdings is imminent, reportedly discovered the new bribery allegations (some of which involve offshoots of the original culpable distributors) through an anonymous whistleblower report.  FCPA experts share their insights on Biomet’s troubles and the DOJ’s tactics.  See also “Weak FCPA Compliance Program and Lack of Cooperation Cited in Marubeni’s $88 Million Guilty Plea,” The FCPA Report, Vol. 3, No. 7 (Apr. 2, 2014).

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  • Checklist of Issues to Consider When Drafting and Implementing Expense-Reporting Procedures

    Insufficient controls governing the expense-reimbursement process can allow employees to bribe foreign officials without detection.  Employees can and have manipulated expense reports in order to provide improper benefits to government officials in the form of gifts, hospitality and charitable contributions and to generate pools of cash from which employees can pay bribes.  This checklist is designed to assist companies in implementing a risk-based expenditures program which can prevent such fraud.  See also “A Guide to Detecting and Preventing Expense-Reimbursement Fraud (Part One of Three),” The FCPA Report, Vol. 3, No. 8 (Apr. 16, 2014); Part Two; and Part Three.

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  • 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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  • Litigator Steve Corso Joins Haynes and Boone in Houston

    Steve Corso, a former assistant U.S. attorney who has also served as an SEC enforcement attorney, recently moved to the Houston office of Haynes and Boone to join the firm’s government investigations and litigation practices.  He will be working to grow the firm's government investigations practice in Houston and across the country in areas including the FCPA and public company accounting and disclosure concerns.

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  • Former Executive Director of Obama’s Financial Fraud Enforcement Task Force Joins Venable

    Michael Bresnick, former Executive Director of the President's Financial Fraud Enforcement Task Force who also served as Assistant Chief in the Fraud Section of U.S. Department of Justice's Criminal Division, has joined as a partner in Venable’s Washington office, the firm announced on March 27.  Bresnick will serve as Chair of the Financial Services Investigations and Enforcement Practice.

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