FCPA Compliance Report

Tom Fox has practiced law in Houston for 30 years and now brings you the FCPA Compliance and Ethics Report. Learn the latest in anti-corruption and anti-bribery compliance and international transaction issues, as well as business solutions to compliance problems.
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FCPA Compliance Report





All Episodes
Now displaying: December, 2016
Dec 29, 2016

In this episode Mike Volkov and myself take a deep dive into the Odebrecht/Braskem and Teva FCPA enforcement actions. We review the underlying facts, the conduct of the parties, the results obtained and what it all means for the compliance practitioner going forward.

Dec 23, 2016

Show Notes for Episode 33, week ending December 23, 2016-Holiday edition

  1. Odebrecht/Braskem FCPA enforcement action. Braskem InformationBraskem Plea AgreementOdebrecht InformationOdebrecht Plea AgreementSEC Civil Complaint.
  2. Goldman Sachs further ensnared in 1MDB scandal. Link to article in Wall Street Journal.
  3. Teva FCPA enforcement action. Teva InformationTeva Plea AgreementTeva DPA
  4. Pre-taliation enforcement heats up, on Radical Compliance.
  5. NFL Playoff update on Patriots, Cowboys and Texans.
Dec 21, 2016

In this episode SCCE CEO Roy Snell and I continue are exploration of issues of import to the compliance profession. We consider the penalty assessed by the NCAA on Notre Dame for it use of two ineligible football players and whether the punishment fit the crime; the forced transparency leading to hyper transparency for today's corporate scandals and the sanctions assessed against former Wells Fargo CEO John Stumpf; advise not send out stupid emails and consider how the safety industry evolved 20 years ago and what implications it might have for the compliance profession going forward. 

Dec 21, 2016

In this episode I visit with Juliet Lui as we discuss how to best handle small and medium investigations in an efficient and cost effective manner. We discuss how such matters often slip through the cracks as they are not perceived as high profile yet can cause significant problems if allowed to fester. We discuss methodology, costs and deliverables. Lui details two case studies to emphasize how important small and medium investigations can be as they often uncover larger and more critical problems and issues. 

Dec 15, 2016

In this episode SCCE CEO Roy Snell and I take a deep dive into corporate governance and compliance, the public skewering of former Wells Fargo CEO John Stumpf and ask if a CEO should be involved in the hiring of a CCO. 

Dec 14, 2016

In this episode Matt Kelly and I take deep dive into the United Airlines SEC enforcement action for violation of internal controls around its reinstitution of a route from Newark to South Carolina at the insistence of the then Chairman of the New York and New Jersey Port Authority David Sampson in exchange for a concession to expand its physical facilities at the Newark airport. We review the background facts, as set out in the SEC Cease and Desist Order and the Justice Department Non-prosecution. We take a look at the internal controls violation of the former UA CEO for violating the company's Code of Conduct, the finding of a lack of internal controls around its route reinstitution protocol and finally discuss the problem of senior management override of internal controls. 

For more information on this enforcement action, check out Matt's blog post on this matter, entitled, "This Weird United Airlines Case Just Happened and my blog post entitled, "The Chairman's Flight and the US Corrupt Practices Act". 

Dec 13, 2016

In this episode, I visit with Houston Chronicle business columnist Chris Tomlinson about his time working internationally for the Associated Press. He relates his first hand view of the invidiousness of corruption in African countries. He also talks about how a major FCPA corruption trial would be covered. He concludes with thoughts about the role of the Fourth Estate in the international fight against corruption. 

Dec 9, 2016

Show Notes for Episode 32, week ending December 9, 2016-the Fly the Not So Friendly Skies edition: 

  1. United Airlines SEC enforcement action for domestic; the Chairman’s Flight and the US Corrupt Practices Act, for a copy of the Justice Department NPA, click here and for a copy of the SEC Cease and Desist Order, click here.
  2. Monetary Authority of Singapore seeks to suspend former Goldman Sachs trader in 1MDB scandal. Link to Fox blog post on Compliance Week.
  3. FATF report that US weak on beneficial ownership issues, for a copy of the report, click here.
  4. Wal-Mart up to $820MM in pre-settlement FCPA settlement spend, on Radical Compliance.
  5. Release of eBook, Trump on Compliance.
  6. SEC Director of Enforcement, Andrew Ceresny announces he will leave the SEC. See NYT article, here.
  7. GibsonDunn briefing on The Road Ahead: DOJ and Federal Enforcement in the Trump Administration predicts a Southern California centered FCPA matter will be concluded by year end.
  8. 10th Annual SEC & DOJ HOT TOPICS 2017 -- Current Developments Materially Affecting Corporations, Financial Institutions, Individuals organized by Sandpiper Partners LLP and program developed by PwC, notes GibsonDunn partner Deb Yang listed as potential SEC Commissioner.
  9. Jay Rosen weekend report update.
Dec 8, 2016

We are back to our more rounded format for this episode on a variety of topics including anti-corruption enforcement across the globe, the new French anti-corruption law, Sapin II, the Agricultural Bank of China compliance enforcement action by the state of New York Department of Financial Services; how corruption influences as much as it pays money and individual accountability for corporate malfeasance is not a Democratic or GOP issue but a law enforcement issue. We end with a well-deserved one minute rant from the panel about what is in the front of their mind.

Mike Volkov discusses the internationalization of anti-corruption enforcement. He refers to the comments from the ACI FCPA conference, by Kara Brockmeyer and Dan Kahn about the increasing international enforcement efforts against corruption. This extends far beyond cooperation but also to enforcement. Recent examples are VimpelCom and Embraer where other countries received proceeds from fines and penalties. How does a company begin to deal with this type of complexity? Who does it disclose to? Who does it pay? When will the US give credit for payments made to other countries and when does it not? Finally this year saw of the third joint DOJ/SEC week long training for foreign prosecutors put on in DC. How do such events assist enforcement efforts, particularly around cooperation and mutual assistance?

For Tom Fox’s blog post, “Anti-Corruption Enforcement Has Gone International?” click here

  • Matt Kelly leads a discussion dive into the AgBank enforcement/sanction action. He explains what does it all means and then pivots into a discussion of where he might see state regulators such as the state of New York Department of Financial Services or state banking regulators becoming more aggressive if the Trump administration pulls back? He discusses how these issues may have relevance for areas of compliance other than bribery and corruption and if so how. Finally, he ends with a reverse states’ rights discussion of Democratically aligned states fighting federal roll back of rights and privileges through litigation.

For Kelly’s posts, see post on the enforcement action involving the Agriculture Bank of China, click here

  • Jonathan Armstrong leads a discussion on the new French anti-corruption law, Sapin II. He discusses the genesis of the law and why prior French efforts at anti-corruption law and enforcement was so harshly criticized by the OECD. He articulates how Sapin II differs from the UKBA, FCPA, the Brazilian Clean Companies Act and other anti-corruption laws across the globe. He talks about where he envisions French enforcement efforts going and the whistleblower protections of the law. Finally he ends with the key piece(s) of advice for clients regarding this law Cordery is suggesting around this law.

For Cordery’s piece on the new law click here.

Jay Rosen takes us through a Paul Krugman NYT post on some of the invidiousness of corruption, focusing on the corrupting nature of compliance around undue influence. Rosen explains incentives more than anything else and how such incentives skew the marketplace. We consider whether Trump’s discussions with the Carrier Corp over jobs was unduly influenced recalling President Kennedy’s ‘jawboning’ of the US steel industry in the 1960s. He also discusses the remarks of Sally Yates at ACI national FCPA conference about individual accountability and how this is not a GOP or Democratic issue but a criminal enforcement issue. For a link Krugman post, click here. For a copy of the text of Yates remarks, click here.

For a copy of Jay blog post entitled, “The DOJ and SEC Share Patriots Mantra—Next Prosecutor Up” click here.

Rants this week include the new UK surveillance law, the SEC domestic corruption enforcement action involving United Airlines for the Chairman’s Flight and the Chicken Littles of the compliance world claiming the sky is falling.

Dec 7, 2016

In this episode, Matt Kelly and I take a deep dive into two areas which will impact compliance practitioners going forward. They are the Justice Department under the Trump Administration and the legislative process going forward. At the DOJ, there will probably not be too much change from the priorities of terrorism and cyber security. We discuss the legislative process in the context of the main street based campaign of candidate Trump and the Wall Street focus of his cabinet and the GOP dominated Congress. We also wonder how much the GOP congressional losses will require some cross-over from Democrats will impact the legislative agenda of Paul Ryan and Mitch McConnell. 

For additional reading, see Matt's blog posts:

  1. Compliance in the Trump Era-Part II: FCPA and 
  2. Compliance in the Trump Era-Part III: Legislation.
Dec 6, 2016

In this episode, I visit with Miller & Chevalier Counsel, Saskia Zandieh on the new French anti-corruption law, Sapin II. She discussion how it may improve the nation's current anti-corruption framework, and review the practical implications gleaned from lessons learned from the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act. Zandieh addresses key changes made by Sapin II, including: (i) expanded jurisdictional reach of French prosecutors in bribery cases; (ii) creation of the "Agence française anti-corruption" (AFA), a new anti-corruption agency; (iii) a new compliance program requirement; (iv) whistleblower protection provisions; (v) the introduction of U.S.-style deferred prosecution agreements to the French legal landscape; (iv) and international double jeopardy considerations.  

She notes that with Sapin II, France has the potential to become a major player in anti-corruption enforcement. For more information on the new law see the Newsletter co-authored by Zandieh entitled, "France's New Anti-Corruption Law: A Game Changer or More of the Same?" by clicking here. 

Dec 2, 2016

Show Notes for Episode 31, week ending December 2, 2016-the Government Speaks edition

  1. Justice Department Assistant Attorney General Sally Yates remarks at 33rd annual ACI National FCPA Conference;
  2. Head of SEC Enforcement Andrew Ceresny remarks at 33rd annual ACI National FCPA Conference;
  3. Richard Bistrong interview of Barry Vitou on the future of the SFO, on the FCPA Blog;
  4. Release of new eBook on Trump and Compliance by the Everything Compliance podcast gang, published by Corporate Compliance Sights;
  5. Matt Ellis releases new book on The FCPA in Latin America;
  6. With help from US, Dutch enter the global fight against terrorism in a big way, see article by Geert Vermeulen, on the FCPA Blog;
  7. Bloomberg News is reporting a potential settlement by Brazilian & US authorities with Odebrecht for $2.5bn over corruption allegations unearthed in Operation Car Wash;
  8. Reflections on the First FCPA Mock Trial Institute; and
  9. How ‘bout them 11-1 Cowboys and the impact of Gronk’s injury on the Patriots.