Blog Posts Tagged With FCPA

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United States v. Hoskins (2d Cir. August 31, 2018)

The Second Circuit held that the FCPA’s anti-bribery provisions do not extend to non-U.S. persons absent a U.S. nexus.  The holding specified that a nonresident foreign national cannot be held liable under the provisions under a conspiracy or accomplice theory if they could not otherwise be held liable under the statute.  The Defendant in the case was a U.K. national employed by a U.S. corporation who had never been to the United States.  The holding
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In re Legg Mason, Inc. (A.P. Aug. 27, 2018, Settled)

Action against Respondent, an investment management firm, in connection with alleged violations of the Foreign Corrupt Practices Act.  According to the SEC, Respondent, through its subsidiary, partnered with a global financial services company to solicit business from state-owned financial institutions, in part by paying bribes through an intermediary to obtain investments from the financial institutions.  The SEC also alleged that Respondent lacked appropriate internal accounting controls with respect to the use of introducing brokers and
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In re Beam Suntory, Inc. (A.P. July 2, 2018, Settled)

Action against Respondent, an alcoholic beverage company, in connection with alleged Foreign Corrupt Practices Act violations in India. The SEC alleges that the Defendant’s subsidiaries and business affiliates made improper payments to Indian government regulators and procurement officials.  Respondent has agreed to pay $5,264,340 in disgorgement, $917,498 in prejudgment interest, and a $2 million civil penalty.

SEC Order

SEC Press Release
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In re Credit Suisse Group AG (A.P. July 5, 2018, Settled)

Action against Respondent, a financial services holding company, in connection with an alleged violation of the Foreign Corrupt Practices Act in connection with its hiring practices in China.  The SEC alleges that Respondent hired the relatives of prominent Chinese government officials of Chinese state-owned enterprises to gain a business advantage.  The SEC further alleges that Respondent did not subject the hires to proper merit screening as required by its policies or maintain sufficient internal accounting
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In re Kinross Gold Corporation (A.P. Mar. 26, 2018, Settled)

Action against Respondent, a gold mining company, for alleged violations of the books and records and internal controls provisions of the FCPA.  According to the SEC, Respondent paid vendors and consultants without reasonable assurance that the transactions were consistent with their stated purpose and were not improper payments to government officials.  In addition, Respondent allegedly used petty cash to make certain of these payments, which it failed to accurately describe in its books and records. 
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In re Elbit Imaging, Ltd. (A.P. Mar. 9, 2018, Settled)

Action against Respondent, an Israeli holding company, for allegedly tolerating violations of the books and records and internal accounting controls provisions of the FCPA.  The SEC alleges that Respondent made payments to third-party consultants and sales agents for purported services related to a Romanian real estate development project and the sale of U.S. real estate assets without evidence that the consultants and sales agents provided the contracted-for services. The SEC further alleges that Respondent failed
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In re Telia Company AB (A.P. Sept. 21, 2017, Settled)

Action against Respondent, a Sweden-based telecommunications provider, for alleged violations of the anti-bribery and internal accounting controls provisions of the Foreign Corrupt Practices Act. According to the SEC, Respondent paid at least $330 million in bribes to an Uzbek government official through sham lobbying and consulting firms in order to acquire a U.S.-based telecommunications company with operations in Uzbekistan and enter the Uzbek telecommunications market. The business obtained through these bribes allegedly generated more than
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In re Halliburton Co. and Jeannot Lorenz (A.P. July 27, 2017, Settled)

Action against Halliburton Co. (“Halliburton”) and former Vice President Jeannot Lorenz for alleged violations of the books and records and internal accounting controls provisions of the Foreign Corrupt Practices Act. The SEC alleges that Halliburton entered into two contracts (negotiated by Lorenz) for the purpose of paying $3,705,000 to an Angolan company whose owner was a former Halliburton employee and neighbor to a government official with authority to reduce or veto subcontracts awarded to Halliburton
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In re Orthofix International N.V. (A.P. January 18, 2017, Settled)

Action against medical device company for allegedly materially overstating its distributor revenue and operating income in public filings.  The majority of the alleged misconduct took place in the company’s largest segment, the Spine segment (“Spine”), including improperly recognizing revenue from several transactions with Spine’s distributors.  Respondent has agreed to pay a civil penalty of $8.25 million.  In a separate proceeding instituted the same day, Respondent agreed to pay disgorgement of $2,928,000, prejudgment interest of $263,375,
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In re Biomet, Inc. (A.P. January 12, 2017, Settled)

Action against Respondent, a global medical device company, for alleged violations of the FCPA.  The SEC alleges that Respondent, through its subsidiary and third-party customs brokers, made payments to Mexican customs officials to facilitate the importation of dental products.  The SEC further alleges improper recording of transactions with a prohibited distributor in Brazil that had previously made improper payments to public doctors in Brazil on Respondent’s behalf, conduct that was the subject of a 2012
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In re Cadbury Limited and Mondeléz International, Inc. (A.P. January 6, 2017, Settled)

Action against Cadbury Limited (“Cadbury”) and Mondeléz International, Inc. alleging that Cadbury India Limited, a subsidiary of Cadbury, retained a consultant to interact with Indian government officials and obtain licenses and approvals for a chocolate factory.  The SEC alleges that failure to properly conduct due diligence and monitor the consultant’s activities created a risk of improper use of funds, constituting violations of the books and records and internal accounting controls provisions of the FCPA. Respondent
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In re General Cable Corporation (A.P. December 29, 2016, Settled)

Action against corporation for allegedly making improper payments to foreign government officials in exchange for business. The SEC also alleges that Respondent failed to detect improper accounting in a subsidiary, which led to material misstatements in its financial statements. Respondent has agreed to pay $51 million in disgorgement, $4 million in prejudgment interest, and a $6.5 million civil penalty; see also In re Zimmer (A.P. December 29, 2016, Settled) (The former senior vice president has
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SEC v. Teva Pharmaceutical Industries Ltd. (S.D. Fla. December 22, 2016, Settled)

Action against pharmaceutical company for allegedly bribing foreign government officials in order to increase market share, obtain regulatory and formulary approvals, and procure favorable drug purchase and prescription decisions. Respondent has agreed to pay more than $236 million in disgorgement and interest.


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SEC v. Braskem, S.A. (December 21, 2016, Settled)

Odebrecht S.A. and its affiliate Braskem S.A. have settled an action brought by the SEC for a record total of $3.6 billion dollars to resolve claims that they allegedly bribed Brazilian government officials in exchange for business, favorable decisions, and tax credits. Odebrecht S.A. has agreed to pay a criminal penalty of $2.6 billion to the DOJ and to Brazilian and Swiss authorities. Braskem S.A. has agreed to pay $957 million to the SEC, DOJ,
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In re JP Morgan Chase & Co. (A.P. November 17, 2016, Settled)

Action against Respondent for allegedly giving jobs to the relatives of government officials in the Asia-Pacific region in order to secure business. Respondent agreed to pay $105.5 Million in disgorgement and $25,000 in interest to the SEC. Separately, Respondent agreed to pay $72 million to the Justice Department and $61.9 million to the Federal Reserve Board of Governors for the same conduct.


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SEC v. Embraer, S.A. (S.D. Fla. October 24, 2016, Settled)

Action against an aircraft manufacturer for alleged violations of the FCPA. Respondent allegedly paid bribes to government officials in the Dominican Republic, Saudi Arabia, and Mozambique. Embraer agreed to pay a $107 million penalty to the Justice Department and $98 million in disgorgement and interest to the SEC. Embraer may receive up to a $20 million credit depending on the amount of disgorgement it will pay in a parallel civil proceeding in Brazil.


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In re Anheuser-Busch InBev SA/NV (A.P. September 28, 2016, Settled)

Action against a Belgian corporation for alleged FCPA violations. The SEC alleges that InBev India International Private Limited, which managed the marketing of wholly owned subsidiary Crown Beers, hired third-party sales promoters to make improper payments to Indian government officials.  The SEC further alleged that Respondent entered into a separation agreement that stopped an employee from continuing to communicate with the SEC about potential FCPA violations by imposing a financial penalty for violation of non-disclosure
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In re Och-Ziff Capital Management Group LLC, et al. (A.P. September 28, 2016, Settled)

Action against a Delaware corporation for alleged violations of the Foreign Corrupt Practices Act (“FCPA”). The SEC alleges that Respondents paid bribes to government officials in multiple African countries including Libya, Chad, Niger, and the Democratic Republic of the Congo. In the first hedge fund settlement for alleged FCPA violations, Respondents have agreed to pay disgorgement of $173 million and prejudgment interest of $25.8 million.


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In re Nu Skin Enterprises, Inc. (A.P. September 20, 2016, Settled)

Action against a corporation for allegedly failing to maintain internal accounting controls over its subsidiary’s operations in China.  The SEC alleges that the company transferred money to a charity in order to obtain influence over a Communist party official.  The Respondent has agreed to pay disgorgement of $431,088, prejudgment interest of $34,600, and a civil penalty of $300,000.


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