Herbalife’s bribery scheme in China stretched across the 28 provinces of China and even involved an Herbalife senior executive in its headquarters in Los Angeles, California. DOJ has indicted Yangling Li, aka Jerry Li, and...more
The Justice Department continues to pursue criminal cases against Venezuelan officials at Petróleos de Venezuela S.A. (PDVSA) in an attempt to strangle President Nicolas Maduro. DOJ has been pursuing a three-pronged strategy...more
8/28/2020
/ Bribery ,
Corruption ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Foreign Official ,
Guilty Pleas ,
Indictments ,
Infrastructure ,
Money Laundering ,
Oil & Gas ,
Regulatory Violations ,
Venezuela
FCPA cases can arise in un usual situations. DOJ has focused two separate prosecutions on bribery and fraud involving adoptions from Uganda and Poland. At the heart, the defendants bribed Ugandan and Polish authorities to...more
8/27/2020
/ Adoption ,
Bribery ,
Child Abuse ,
Corruption ,
Criminal Conspiracy ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Foreign Official ,
Fraud ,
Guilty Pleas ,
Mail Fraud ,
Poland ,
Uganda ,
Wire Fraud
In a surprise indictment, the US Attorney’s Office for the Southern District of New York announced that Steve Bannon, Brian Kolfage, Andrew Badolato and Timothy Shea were indicted for defrauding hundreds of thousands of...more
8/24/2020
/ Charitable Donations ,
Criminal Conspiracy ,
Criminal Prosecution ,
Crowdfunding ,
Enforcement Actions ,
Financial Fraud ,
Financial Transactions ,
Indictments ,
Misleading Statements ,
Money Laundering ,
Trump Administration ,
US-Mexico Border Wall ,
USPS ,
White Collar Crimes ,
Wire Fraud
DOJ’s aggressive enforcement of the opioid industry is a striking example of the power of federal prosecutors when focused on an industry. Once prioritized for enforcement, DOJ has quickly brought together prosecutors and...more
The Justice Department and OFAC announced a settlement with Essentra FZE Company Limited (“Essentra FZE”), a cigarette filter and tear tape manufacturer, for violation of the North Korea Sanctions Program. The violations...more
The Antitrust Division’s recent indictment of the boiler chicken executives provided an important reminder to compliance officers on the importance of an effective antitrust compliance program....more
6/18/2020
/ Agribusiness ,
Anti-Competitive ,
Antitrust Division ,
Antitrust Provisions ,
Antitrust Violations ,
C-Suite Executives ,
Competition ,
Compliance ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Food Supply ,
Indictments ,
Poultry ,
Price-Fixing ,
Retail Market ,
Suppliers ,
Tyson Foods
The recent indictment of four executives involved in a long-running price-fixing scheme among broiler chicken suppliers provides an important window into how such conspiracies work and evade detection....more
6/18/2020
/ Agribusiness ,
Anti-Competitive ,
Antitrust Division ,
Antitrust Provisions ,
Antitrust Violations ,
Competition ,
Compliance ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Food Supply ,
Indictments ,
Poultry ,
Price-Fixing ,
Retail Market ,
Suppliers ,
Tyson Foods
The Justice Department’s Antitrust Division recently announced a $100 million settlement with Florida Cancer Specialists & Research Institute (“FCS”) for an illegal conspiracy to allocate cancer patients in Southwest...more
5/14/2020
/ Antitrust Provisions ,
Antitrust Violations ,
Cancer ,
Capacity Allocation ,
Compliance ,
Criminal Conspiracy ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
False Claims Act (FCA) ,
Health Care Providers ,
Sherman Act ,
White Collar Crimes
In an important set of criminal prosecutions for food safety violations, the Justice Department recently announced resolutions with Blue Bell Creameries and Chipotle Mexican Grill....more
5/7/2020
/ Blue Bell Creameries ,
Chipotle Grill ,
Compliance ,
Coronavirus/COVID-19 ,
Corruption ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Federal Food Drug and Cosmetic Act (FFDCA) ,
Food Contamination ,
Food Manufacturers ,
Food Recalls ,
Food Safety
My relationship with Judge Sporkin started in the 1990s when I served as an Assistant U.S. Attorney in the District of Columbia. I prosecuted a number of criminal cases before Judge Sporkin....more
In 2019, the Department of Treasury’s Office of Foreign Asset Control (OFAC) issued important guidance on sanctions compliance programs. OFAC’s guidance sets out new and prescriptive requirements for sanctions compliance...more
In its continuing aggressive FCPA criminal enforcement program, DOJ announced the indictment of two former Alstom executives and a former Marubeni executive with FCPA violations arising from a bribery scheme in Indonesia....more
2/26/2020
/ Alstom ,
Bribery ,
Corporate Counsel ,
Corruption ,
Criminal Conspiracy ,
Criminal Investigations ,
Criminal Prosecution ,
Critical Infrastructure Sectors ,
Enforcement Actions ,
Fines ,
Foreign Corrupt Practices Act (FCPA) ,
Foreign Official ,
Government Officials ,
Guilty Pleas ,
Indictments ,
Indonesia ,
Jury Trial ,
Money Laundering ,
Public Contracts ,
Public Projects ,
Statutory Violations ,
Utilities Sector ,
White Collar Crimes
This year, 2020, has been an enforcement year opening with billion-dollar settlements: first, Airbus settled FCPA charges for $4 billion, and now Wells Fargo for $3 billion. What a start to an enforcement year!...more
2/25/2020
/ Banks ,
Civil Liability ,
Criminal Liability ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Fraud ,
Individual Accountability ,
Senior Managers ,
Settlement ,
Wells Fargo ,
White Collar Crimes
When reviewing a major enforcement case, I always ask two basic questions:
What was the role of Board and senior management in the failure, and how did they fail to exercise proper oversight and ensure compliance?...more
2/6/2020
/ Airbus ,
Aviation Industry ,
Bribery ,
Compliance Management Systems ,
Corporate Culture ,
Corruption ,
Criminal Prosecution ,
Defense Sector ,
Deferred Prosecution Agreements ,
Directorate of Defense Trade Controls (DDTC) ,
Enforcement Actions ,
Export Controls ,
Foreign Corrupt Practices Act (FCPA) ,
Government Officials ,
ITAR ,
Military Contracts ,
National Security ,
Regulatory Violations ,
Settlement Agreements ,
Statutory Violations ,
White Collar Crimes
The Justice Department has brought only a few enforcement actions that focus on FCPA and export control violations. Last year, Quad Graphics earned a declination for FCPA and OFAC violations. In 2013, Weatherford settled...more
2/6/2020
/ Airbus ,
Arms Export Control Act ,
Aviation Industry ,
Bribery ,
Corruption ,
Criminal Prosecution ,
Defense Sector ,
Directorate of Defense Trade Controls (DDTC) ,
Enforcement Actions ,
Export Controls ,
False Statements ,
Fees ,
Foreign Corrupt Practices Act (FCPA) ,
Government Officials ,
ITAR ,
Military Contracts ,
National Security ,
Political Contributions ,
Regulatory Violations ,
Settlement Agreements ,
Statutory Violations ,
White Collar Crimes
Almost every FCPA enforcement action contains important lessons learned in unraveling a bribery scheme.
Airbus has three broad divisions: (1) Commercial Division; (2) Defense & Space Division; and (3) Helicopters...more
2/5/2020
/ Airbus ,
Aircraft Sales ,
Aviation Industry ,
Bribery ,
China ,
Corruption ,
Criminal Prosecution ,
Defense Sector ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Foreign Official ,
ITAR ,
Military Contracts ,
National Security ,
Regulatory Violations ,
Statutory Violations ,
White Collar Crimes
In a blockbuster case, the Justice Department announced a global settlement with Airbus SE, a manufacturer of civilian and military aircraft, under which Airbus agreed to pay over $4 billion (yes, with a “B”) to resolve...more
2/3/2020
/ Airbus ,
Aviation Industry ,
Bribery ,
Corruption ,
Criminal Prosecution ,
Defense Sector ,
Deferred Prosecution Agreements ,
Department of Justice (DOJ) ,
Directorate of Defense Trade Controls (DDTC) ,
Enforcement Actions ,
Export Controls ,
Foreign Corrupt Practices Act (FCPA) ,
France ,
Government Officials ,
ITAR ,
Military Contracts ,
National Security ,
Penalties ,
Regulatory Violations ,
Serious Fraud Office (SFO) ,
Settlement Agreements ,
Statutory Violations ,
Technology Sector ,
UK ,
White Collar Crimes
While DOJ had its biggest year in FCPA enforcement, OFAC quietly had a record year in enforcement. OFAC collected approximately $1.28 billion (yes, with a B) in 26 separate enforcement actions. That is quite an increase...more
1/21/2020
/ Anti-Corruption ,
Corruption ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Distributors ,
Economic Sanctions ,
Enforcement Actions ,
Export Controls ,
Exports ,
FCPA Corporate Enforcement Policy (CEP) ,
Foreign Corrupt Practices Act (FCPA) ,
Office of Foreign Assets Control (OFAC) ,
Risk Assessment ,
Russia ,
Securities and Exchange Commission (SEC) ,
Self-Reporting ,
Suppliers ,
Supply Chain ,
Third-Party Relationships ,
Third-Party Risk ,
Ukraine
It is time to break out the crystal ball for FCPA 2020 Predictions. In preparing for this, I always rely on my past admiration of Carnac the Magnificent....more
1/9/2020
/ 1MDB ,
5G Network ,
Anti-Corruption ,
Brazil ,
China ,
Compliance ,
Corruption ,
Criminal Investigations ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Ericsson ,
FCPA Guidance ,
Foreign Corrupt Practices Act (FCPA) ,
General Electric ,
Goldman Sachs ,
Guilty Pleas ,
Healthcare ,
Malaysia ,
Philips Electronics ,
Securities and Exchange Commission (SEC) ,
Settlement Agreements ,
Settlement Negotiations ,
Siemens ,
Telecommunications ,
Uzbekistan ,
White Collar Crimes
In a record year, there are bound to be numerous interesting enforcement actions and principles. I picked out a few to highlight....more
1/8/2020
/ Anti-Corruption ,
Bribery ,
Cell Phones ,
Compliance ,
Compliance Management Systems ,
Corruption ,
Criminal Investigations ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Ericsson ,
Ethics ,
FCPA Corporate Enforcement Policy (CEP) ,
Foreign Corrupt Practices Act (FCPA) ,
Fresenius ,
Indictments ,
Pharmaceutical Industry ,
Russia ,
Securities and Exchange Commission (SEC) ,
Settlement Agreements ,
Telecommunications ,
Wal-Mart ,
White Collar Crimes ,
Wireless Industry
Happy New Year!!
In the FCPA arena, 2019 was a record year – in enforcement and compliance.
Many continuing trends are becoming more than trends – meaning they are turning into established practices....more
1/7/2020
/ Anti-Corruption ,
Bribery ,
Compliance ,
Compliance Management Systems ,
Corruption ,
Criminal Investigations ,
Criminal Prosecution ,
Declination ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Ericsson ,
Foreign Corrupt Practices Act (FCPA) ,
Fresenius ,
Guilty Pleas ,
Indictments ,
Leniency Programs ,
Microsoft ,
Money Laundering ,
Pharmaceutical Industry ,
Popular ,
Retailers ,
Samsung ,
Securities and Exchange Commission (SEC) ,
Settlement Agreements ,
Settlement Negotiations ,
Telecommunications ,
Transparency ,
Wal-Mart ,
White Collar Crimes ,
Wiretapping
Ericsson’s FCPA settlement is in the books (not the books and records). But it casts a significant shadow across the FCPA landscape. A pervasive and systemic culture of bribery is defined to reflect senior executive...more
12/11/2019
/ Anti-Bribery ,
Books & Records ,
Bribery ,
CEOs ,
China ,
Compliance ,
Corruption ,
Criminal Investigations ,
Criminal Prosecution ,
Deferred Prosecution Agreements ,
Department of Justice (DOJ) ,
Djibouti ,
Enforcement Actions ,
Ericsson ,
Foreign Corrupt Practices Act (FCPA) ,
Government Officials ,
Indonesia ,
Kuwait ,
Meals-Gifts-and Entertainment Rules ,
Securities and Exchange Commission (SEC) ,
Settlement ,
State Contractors ,
Telecommunications ,
Third-Party Relationships ,
Third-Party Risk ,
Vietnam ,
White Collar Crimes
The Sweden-based telecommunications company, Ericsson, agreed to a pay a total of $1 billion (yes, billion with a “B”) for FCPA violations.
Ericsson entered into settlement agreements with DOJ and the SEC. Ericsson agreed...more
12/10/2019
/ Bribery ,
Compliance ,
Corporate Counsel ,
Corruption ,
Criminal Investigations ,
Criminal Prosecution ,
Deferred Prosecution Agreements ,
Department of Justice (DOJ) ,
Egypt ,
Enforcement Actions ,
Ericsson ,
Foreign Corrupt Practices Act (FCPA) ,
Government Officials ,
Guilty Pleas ,
Securities and Exchange Commission (SEC) ,
Subsidiaries ,
Telecommunications ,
White Collar Crimes
The Sweden-based telecommunications company, Ericsson, agreed to a pay a total of $1 billion (yes, billion with a “B”) for FCPA violations.
Ericsson entered into settlement agreements with DOJ and the SEC. Ericsson agreed to...more
12/8/2019
/ Anti-Bribery ,
Books & Records ,
Bribery ,
Corporate Misconduct ,
Corporate Monitoring ,
Criminal Conspiracy ,
Criminal Prosecution ,
Deferred Prosecution Agreements ,
Department of Justice (DOJ) ,
Foreign Corrupt Practices Act (FCPA) ,
Guilty Pleas ,
Internal Controls ,
Securities and Exchange Commission (SEC) ,
Settlement Agreements ,
Statutory Violations ,
Telecommunications