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The SEC’S First Deferred Prosecution/Cooperation Agreement: A New Approach?

The SEC and Tenaris S.A resolved an FCPA case with a deferred prosecution agreement. It is the first deferred prosecution agreement under the initiative the Commission announced last year. The company also settled FCPA charges with the Department of Justice, entering into a non-prosecution agreement...

Unfair SOX 304 Clawback?–Beazer CEO Pays for Restatement without Fault

The SEC recently announced that it reached a settlement with Beazer CEO O'Leary requiring O'Leary to pay back to Beazer more than $1.4 million that he received during a time period when Beazer's financial statements were allegedly misstated. It is undisputed that the SEC did not charge...

The End is Nigh for Facilitation Payments – Get Ahead of the Breeze

Last summer, an article was published in the University of Pennsylvania, Journal of Business Law , entitled " The OECD's Call for an End to the 'Corrosive' Facilitation Payments and the International Focus on the Facilitation Payments Exception under the Foreign Corrupt Practices Act...

Why Is The SEC Pursuing Deloitte Shanghai? Looks Like It’s Personal

The Securities and Exchange Commission is rattling a dull sabre again towards Shanghai-based Deloitte Touche Tohmatsu CPA Ltd. for its refusal to provide the agency with audit work papers related to Longtop, a China-based company under investigation for potential accounting fraud against U.S. investors...

Big Four Auditors and Jury Trials: Not In The U.S.

Deloitte has settled a shareholder case against the firm stemming from their role as auditor of Bear Stearn s, one of the early financial services firms to fail, be force sold or nationalized during the financial crisis of 2008-2009. Deloitte was dangerously close to having to answer for its actions...

Supreme Court Unanimously Rejects SEC’s Statute Of Limitations Position

This article was reprinted with permission from FCPA Professor February's issue of the month is the statute of limitations in SEC enforcement actions. 28 U.S.C. 2462 provides as follows. "Except as otherwise provided by Act of Congress, an action, suit or proceeding for the enforcement...

Don’t Believe the Hype on SEC Statute of Limitations

This article was reprinted with permission from FCPA Professor The statute of limitations is a fundamental legal principle setting a fixed period of time to file a lawsuit after a claim arises. Last term in Gabelli v. SEC [ an enhanced version of this opinion is available to lexis.com subscribers...

More About the D&O Insurance Implications of the SEC's New Admissions Wrongdoing Requirements

Numerous questions surround the SEC’s new policy requiring enforcement action defendants in “egregious” cases to admit to wrongdoing in order to settle with the agency, rather than simply agreeing to neither admit nor deny the agency’s allegations. As I discussed in a prior post...

The SEC’s AgFeed Complaint: No Restatement Means No Sarbanes-Oxley Clawback

The Securities and Exchange Commission says it’s stepping up scrutiny of corporate accounting and disclosure fraud. That means going after gatekeepers like auditors, lawyers, and directors under an aptly named initiative Operation Broken Gate . The AgFeed case is the mother lode for an SEC that...

A Whole Bunch of Interesting Litigation and Enforcement Statistics and Analyses

A single case may involve a host of interesting issues but sometimes the important lessons can only be discerned when many cases are considered collectively. This past week saw the release of some interesting analyses of aggregate litigation and enforcement statistics, each set of which told some interesting...

SEC Files Settled FCPA Charges Against Two Individuals

The SEC filed another settled FCPA action. The proceeding named two individuals as Respondents. It centers on using expensive gifts and travel as bribes. In the Matter of Stephen Timms , Adm. Proc. File No. 3-16281 (November 17, 2014). Respondents Stephen Timms and Yasser Ramahi, both U.S. citizens...

Avon Settles FCPA Charges with the DOJ and SEC

Travel, entertainment and gifts continue to be a central focus of FCPA enforcement. Earlier this month, and last month, the Commission filed settled FCPA actions centered on these items. Now the SEC and the DOJ have settled with Avon Products, Inc. in a case which again centers on these same items. SEC...

SEC Enforcement of the FCPA – 2014 Year in Review

This article was reprinted with permission from FCPA Professor Foreign Corrupt Practices Act enforcement, it is not just about the DOJ. Granted, as a civil enforcement agency its sticks are less sharp than the DOJ’s, but the SEC also claims a significant piece of the FCPA enforcement pie (query...

Miss Marple Short Stories and SEC Enforcement of the FCPA, Part I

I am a huge Agatha Christie fan. I have read most of the Poriot novels and many of the Jane Marple novels as well. However, I was not aware of Christie’s work in the short story format until I recently read a volume entitled Miss Marple Short Stories . This volume included 13 short stories first...

The Companion and SEC Enforcement of the FCPA – Part II

I will use Agatha Christie’s short story The Companion as the introduction to today’s blog post. This story, related by one of the Tuesday story-telling group of detective aficionados, Dr. Lloyd, and is about two people who are related yet take different paths. It involves the death of a...

The Blue Geranium – SEC Enforcement of the FCPA – Part III

In Agatha Christie’s The Blue Geranium a difficult and cantankerous semi-invalid wife is looked after by a succession of nurses. They changed regularly, unable to cope with their patient, with one exception Nurse Copling who somehow managed the tantrums and complaints better than others of her...

Ingots of Gold & SEC FCPA Enforcement – Communication – Part IV

Today I want to use the Agatha Christie’s story Ingots of Gold as an introduction to some of the regular communications that the Securities and Exchange Commission (SEC) representatives frequently provide in public forums, regarding their views on Foreign Corrupt Practices Act (FCPA) enforcement...

Miss Marple Short Stories and SEC Enforcement of the FCPA, Part V – Final Thoughts

I conclude my week of exploration of Agatha Christie’s Miss Marple short stories and the Securities and Exchange Commission’s (SEC) enforcement of the Foreign Corrupt Practices Act (FCPA) by reviewing some of the new things I’ve learnt during this week of research. I learned that Christie...

SEC Whistleblowing Program: The Agency Means Business

The SEC wants you to know that it means business about its whistleblowing program. On April 1, 2015, in the latest in a series of steps to protect and encourage whistleblowers, the agency entered an order in an enforcement action against KBR saying that the company’s confidentiality requirements...

Enforcement Officials Speak on Compliance and Individual Accountability

This article was reprinted with permission from FCPA Professor This post summarizes two recent speeches by DOJ/SEC enforcement officials that touched upon topics relevant to Foreign Corrupt Practices Act enforcement. In the first speech , Assistant Attorney General Leslie Caldwell, speaking at...