Internal Controls Under the FCPA

Most Foreign Corrupt Practices Act (FCPA) practitioners understand the requirement for a compliance policy under the FCPA. However many practitioners, particularly lawyers practicing in the compliance field, do not understand the requirement for proper Internal Controls. Generally speaking, Internal...

Internal Controls under the UK Bribery Act and FCPA

Although much is still unclear about the implementation date, or the manner in which the UK Bribery Act will be enforced, it is clear that one of the important compliance functions which a company should implement is appropriate internal controls. The previously released Consultative Guidance had...

FCPA Lessons Learned-Failures in Internal Controls

We often write and speak on some of the lesson learned from enforcement actions brought by the Department of Justice (DOJ) under the Foreign Corrupt Practices Act (FCPA). We believe that companies can not only learn from the mistakes of others in implementing or enhancing their compliance program...

Johnson & Johnson, DePuy Pay $76.9M To Settle Foreign Bribery Claims

(Mealey's) - Johnson & Johnson (J&J) and subsidiary DePuy International Ltd. will pay $76.9 million to resolve criminal and civil allegations in the United States and in the United Kingdom that they paid kickbacks to doctors in Greece, Poland, Romania and Iraq to use the companies'...

Johnson & Johnson and DePuy Settle Claims They Paid Kickbacks to Doctors

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Johnson & Johnson Deferred Prosecution Agreement-Part II: Compliance Program Best Practices

Yesterday we reviewed the background facts of the Johnson & Johnson (J&J) Deferred Prosecution Agreement (DPA) and the issue of self-reporting. In this posting we will review some of specific compliance program best practices which Johnson & Johnson agreed to implement. I. Attachment...

Johnson & Johnson Becomes the Newest Member of the FCPA Top 10 Settlements List

Current trends in FCPA enforcement are evident in the latest settlement with Johnson & Johnson. U.S. v. Depuy, Inc. , (D.D.C. Filed April 8, 2011); SEC v. Johnson & Johnson , Civil Action No. 1:11-cv-00686 (D.D.C. Filed April 8, 2011). To resolve the case with DOJ and the SEC the company...

Fancy a Brew? Internal Controls under the UK Bribery Act

My colleague Henry Mixon of Mixon Consulting has an interesting observation regarding internal controls under the UK Bribery Act. Unlike the Foreign Corrupt Practices Act (FCPA), the Bribery Act does not have a books and records component written into the law. However, even without this books and...

Comments about SEC v. Thor Industries: The Allegations and the Remedies

The SEC's recent action against Thor Industries can be found here: Litigation Release / Complaint . In pertinent part, pursuant to the allegations in the litigation release and in the Complaint, Thor and its subsidiaries lacked reporting, recording keeping and internal controls, including...

McNulty’s Maxims, the Deepwater Horizon and FCPA Internal Controls

I often write about what I call Paul McNulty's three maxims of a Foreign Corrupt Practices Act (FCPA) compliance program: 1) What did you do to prevent it?; 2) What did you do to detect it?; and 3) What did you do to remedy it? I had generally thought that the internal controls component of a...

Groupon: You Must Have Fallen From The Sky

Last week was Groupon's big week, although not in a good way. What happened? Well, the premier source of daily deal dish got knocked down a few more pegs after announcing a revision to 4th quarter earnings and the announcement by management that there was a material weakness in internal controls...

Morgan Stanley Goes One for One with a Best Practices Compliance Program

On Monday night, Houston Astros manager Brad Mills went to the mound five times to change pitchers against five straight New York Mets batters. This set the Astros twitter community literally 'a-twitter' as it was noted that, according to the Elias Sports Bureau, the "Astros became the...

A Focus On World-Wide Coin

This article was reprinted with permission from FCPA Professor The SEC's administrative order ( here ) in the December 2012 Allianz enforcement action cited SEC v. World-Wide Coin Investments , 567 F.Supp. 724 (N.D. Ga. 1983) [ an enhanced version of this opinion is available to lexis.com subscribers...

Las Vegas Sands Reporting – Not The Media’s Finest FCPA Moment

This article was reprinted with permission from FCPA Professor Las Vegas Sands has been the subject of much FCPA scrutiny since October 2010 when Steven Jacobs (the former President of the company's Macau operations) filed a civil cause against the company in Nevada State court alleging various...

Board of Directors and FCPA Oversight – An Internal Control Under SOX, Part I

Today we begin by honoring the political process and a politician extraordinaire. In September of 1836, Sam Houston was elected as the first President of the Republic of Texas. One of the most interesting characters from the early-to-mid-19 th century, Houston was born in Virginia in 1793, moved with...

Board of Directors and FCPA Oversight – An Internal Control Under SOX, Part II

In Part I of this two-part post regarding a Board of Director’s Role in Foreign Corrupt Practices Act (FCPA) oversight from the internal controls perspective, I reviewed how a Board might have independent liability for its failure to act as an appropriate internal control as required by Sarbanes...

Barclays Is Sanctioned by the FCA and the SEC

Barclays took a double hit from regulators yesterday. First the Financial Conduct Authority in the UK fined Barclays Bank PLC, about £38 million for putting £16.5 billion of client assets at risk. Then the SEC imposed a $15 million penalty on Barclays Capital Inc. In the Matter of Barclays...

Lessons from GSK in China – Internal Controls, Auditing and Monitoring

One of the great things about writing your own blog is that sometimes you can get going on a subject and just explore it. While I think I might sometimes get carried away when I delve into a topic, I certainly learn much while doing so. This week appears to be such a situation where in studying and researching...

The Horror of Dracula and Internal Controls in International Locations, Part I

This Friday we celebrate the second in the Hammer Films horror series, which was actually its first offering, based on Count Dracula, entitled “ Horror of Dracula ”. It starred the famous Hammer Films horror movie two-some of Peter Cushing as Professor Van Helsing and Christopher Lee as Count...

Steve Bartman and Internal Controls Outside the US, Part II

Today, we note that 11 years ago, Steve Bartman entered the Chicago Cubs Hall of Infamy. For every baseball fan, if there was ever a but for the grace of God, go thee moment the sad saga of Bartman is it. The Chicago Cubs, who at that point had not played in World Series appearance in 58 years were five...

The Mummy and Internal Controls in Locations Outside the US – Part III

Today we celebrate Hammer Film’s version of The Mummy . This was the first film that the Hammer studios made under a license agreement with Universal Pictures, the holder of the copyright of its classic monsters from the 1930s and 1940s. This version starred the duo of Peter Cushing and Christopher...