Securities

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A Corporate Self-Compliance Program for the FCPA? Volkov’s Proposal
Posted on 3 Dec 2010 by Thomas Fox

At the " Examining Enforcement of the Foreign Corrupt Practices Act " hearings on November 30, 2010, before the US Senate Judiciary Committee , Subcommittee on Crime and Drugs, Michael Volkov presented an interesting idea which he believes... Read More

Private Equity Portfolio Companies and Bribery Charges
Posted on 4 Jan 2011 by Doug Cornelius

The U.S. is investigating Allianz SE, for possible bribery by a German printing press company in which it holds a majority stake according to a story by Joe Palazzolo in WSJ.com's Corruption Currents . The Foreign Corrupt Practices Act bars... Read More

Handling an Overseas FCPA Investigation
Posted on 23 Feb 2011 by Thomas Fox

We recently came across an article entitled, " Coordinating Investigations Between US Companies and their Subsidiaries or Suppliers Overseas ", by two Jones Day attorneys, John Edwards and Gillian Garrett . While not strictly focused on... Read More

FCPA Risk Assessments: New Input into Current Best Practices
Posted on 16 Feb 2011 by Thomas Fox

We believe that Risk Assessment is a tool and is one with which a company should begin to craft its Foreign Corrupt Practices (FCPA) or UK Bribery Act compliance program. The simple reason is straightforward; one cannot define, plan for, or design... Read More

Who is a Foreign Governmental Official Under the FCPA: The Defense Attacks
Posted on 24 Feb 2011 by Thomas Fox

As was initially reported by the FCPA Professor , lawyers for four of the individual defendants who are former executives of the Orange County, California-based valve company, Control Components Inc. have filed a Motion to Dismiss the DOJ's case... Read More

How to Begin Your FCPA Due Diligence
Posted on 1 Dec 2010 by Thomas Fox

The task of where to begin a full compliance and ethics program can often times appear quite daunting. Most US companies fully understand the need to comply with the Foreign Corrupt Practices Act (FCPA). However most companies are not created out of... Read More

Disclosure and Negotiating with the Government – A FCPA Conundrum?-Part I
Posted on 8 Feb 2011 by Thomas Fox

All compliance programs are designed to prevent, detect and deter ethical violations. In the United States, they are also designed to bring companies into compliance with the Foreign Corrupt Practices Act (FCPA). However, as important as these programs... Read More

Foreign Joint Ventures: Dennis Haist and Some Characteristics of FCPA Risk
Posted on 18 Feb 2011 by Thomas Fox

In an article in the January/February issue of the ACC Docket , entitled " Guilt by Association: Transnational Joint Ventures and the FCPA " [membership required]; Dennis Haist , General Counsel of The Steele Foundation (Steele) discussed... Read More

Five Travel Expense Related FCPA Violations
Posted on 7 Dec 2010 by George Pressly

Here's a tip for potential Foreign Corrupt Practices Act whistleblowers: travel expenses clearly fall within FCPA guidelines. A FCPA whistleblower is often an employee or insider who often times assumes incorrectly that a bribe only constitutes... Read More

Alcantel-Lucent Settles FCPA Cases
Posted on 28 Dec 2010 by Thomas O. Gorman

The Department of Justice and the SEC settled FCPA cases with Alcantel-Lucent S.A., a company formed in a November 30, 2006 merger involving Paris, France based Alcantel, S.A. and U.S. based Lucent Technologies, Inc. U.S. v. Alcatel-Lucent S.A. , (S.D... Read More

FIFA, the World Cup Selection and the FCPA
Posted on 10 Feb 2011 by Thomas Fox

One of the interesting facts of life that I have learned being married to an English woman is that what I thought of as 'Football' is really 'American Football'. The true game of 'Football' is played by the rest of the world... Read More

Haist on Foreign Joint Ventures and the FCPA – Part II
Posted on 22 Feb 2011 by Thomas Fox

In our most recent post , we wrote about an article by Dennis Haist , General Counsel of the Steele Foundation , which recently appeared in the ACC Docket . The article was entitled, " Guilt by Association: Transnational Joint Ventures and... Read More

Top Ten FCPA Enforcement Actions in 2010-Part I
Posted on 27 Dec 2010 by Thomas Fox

The FCPA year in 2010 has been quite interesting. As the year is ending I wanted to put forth some of the more significant enforcement actions for the FCPA practitioner to provide lessons learned and perhaps some educational opportunities for all our... Read More

The Swiss Compliance House: a Model for FCPA Compliance?
Posted on 18 Jan 2011 by Thomas Fox

In an article in the January/February issue of the ACC Docket entitled " Five Fundamentals for Taking Management Compliance Seriously " , author Daniel Lucien Buhr discusses a model for a compliance system which he describes as the "Compliance... Read More

Being a Great (Compliance) Leader
Posted on 20 Jan 2011 by Thomas Fox

In the most recent issue of the Harvard Business Review , writers Linda Hill and Kent Lineback posed the question, " Are You a Good Boss - Or a Great One ?" In this article they explore what they believe to be some of the imperatives of going... Read More

  • Blog Post: US Sentencing Guidelines Changes Become Effective November 1

    Yesterday, on November 1, 2010, the proposed changes in the US Sentencing Guidelines became effective. This post will highlight the changes and what they may import for the FCPA compliance professional. The US Sentencing Guidelines are used in the sentencing of organizations and serve as the de facto...
  • Blog Post: How to Begin Your FCPA Due Diligence

    The task of where to begin a full compliance and ethics program can often times appear quite daunting. Most US companies fully understand the need to comply with the Foreign Corrupt Practices Act (FCPA). However most companies are not created out of new cloth but are ongoing enterprises with a fully...
  • Blog Post: FCPA Enforcement: Crafting Incentives to Foster Compliance

    FCPA enforcement has been marked by the aggressive approach adopted in recent years by The Department of Justice and the SEC. As Acting Deputy Assistant Attorney General Greg Andres told a Senate Committee this week "over approximately the last two years, we have substantially increased the...
  • Blog Post: A Corporate Self-Compliance Program for the FCPA? Volkov’s Proposal

    At the " Examining Enforcement of the Foreign Corrupt Practices Act " hearings on November 30, 2010, before the US Senate Judiciary Committee , Subcommittee on Crime and Drugs, Michael Volkov presented an interesting idea which he believes will maximize incentives for companies to comply...
  • Blog Post: Five Travel Expense Related FCPA Violations

    Here's a tip for potential Foreign Corrupt Practices Act whistleblowers: travel expenses clearly fall within FCPA guidelines. A FCPA whistleblower is often an employee or insider who often times assumes incorrectly that a bribe only constitutes a violation of the FCPA if actual cash changes...
  • Blog Post: The FCPA Audit For Supply Chain Vendors

    An audit for adherence to Foreign Corrupt Practices Act (FCPA) compliance requirements is becoming more standard as a best practice in the management of business relationships with third party vendors which work with a company through the supply chain. In several recent settlements of enforcement actions...
  • Blog Post: Top Ten FCPA Enforcement Actions in 2010-Part I

    The FCPA year in 2010 has been quite interesting. As the year is ending I wanted to put forth some of the more significant enforcement actions for the FCPA practitioner to provide lessons learned and perhaps some educational opportunities for all our clients. One of the more frequent criticisms of the...
  • Blog Post: Top Ten FCPA Enforcement Actions in 2010-Part II

    This is the second part of a look bacl at the top FCPA cases in 2010. Although the holiday season is here, we would be remiss if we did not note that Houston Chronicle sports columnist Richard Justice pointed out in his column this morning that there are only 55 days until pitchers and catchers report...
  • Blog Post: Alcantel-Lucent Settles FCPA Cases

    The Department of Justice and the SEC settled FCPA cases with Alcantel-Lucent S.A., a company formed in a November 30, 2006 merger involving Paris, France based Alcantel, S.A. and U.S. based Lucent Technologies, Inc. U.S. v. Alcatel-Lucent S.A. , (S.D.Fla. Dec. 27, 2010); U.S. v. Alcatel-Lucent France...
  • Blog Post: Private Equity Portfolio Companies and Bribery Charges

    The U.S. is investigating Allianz SE, for possible bribery by a German printing press company in which it holds a majority stake according to a story by Joe Palazzolo in WSJ.com's Corruption Currents . The Foreign Corrupt Practices Act bars US companies from paying bribes to foreign officials...
  • Blog Post: Is Your FCPA Compliance Program a Good Business Model?

    Many compliance practitioners struggle with the questions of how to measure the effectiveness of their company's Foreign Corrupt Practices Act (FCPA) compliance program. In the January-February 2010 issue of the Harvard Business Review , authors Ramon Casadesus-Masanell and Joan E. Ricart explore...
  • Blog Post: Jonathan Marks’ 13 Step FCPA Compliance Action Plan

    Back in December 2010, we noticed a tweet by Jonathan Marks where he mentioned that he had developed a 13-step action plan for Foreign Corrupt Practices Act (FCPA) compliance programs. We were certainly intrigued by this information but, alas, there was no link to the document or information, so...
  • Blog Post: FCPA Compliance in the Global Supply Chain

    As readers of this blog know, one of the areas regarding liability under the Foreign Corrupt Practices Act that we have written on is that of liability attaching to a company through its supply chain vendors. (See here , here and here ). This issue was clearly at the forefront of the Panalpina...
  • Blog Post: How Does the FCPA Apply to Your Business?

    One question that I often hear about the application of the Foreign Corrupt Practices Act (FCPA) is something along the lines of the following: "I am not in the international energy business, I am in the restaurant, retail, banking, or (fill in the blank) business. And yes my company has international...
  • Blog Post: The Swiss Compliance House: a Model for FCPA Compliance?

    In an article in the January/February issue of the ACC Docket entitled " Five Fundamentals for Taking Management Compliance Seriously " , author Daniel Lucien Buhr discusses a model for a compliance system which he describes as the "Compliance House". The Compliance House is a...
  • Blog Post: Being a Great (Compliance) Leader

    In the most recent issue of the Harvard Business Review , writers Linda Hill and Kent Lineback posed the question, " Are You a Good Boss - Or a Great One ?" In this article they explore what they believe to be some of the imperatives of going from a good boss to a great boss. Recognizing...
  • Blog Post: What are the Odds in Your FCPA Compliance Investigation?

    The experts have spoken and the Astros are a 75-1 long shot to win the World Series. But that is just what the experts predict and as we are 3 weeks away from pitchers and catchers reporting for Spring Training I prefer to take the pink cloud approach, that at least as of now, the Astros have as...
  • Blog Post: Doing Business in Russia under the FCPA or Bribery Act

    As reported by Andres Kramer in Tuesday's New York Times, in an article entitled, " Russia, Facing Big Budget Gap, Warms to Foreign Investors ", the Russian government is actively seeking foreign capital and foreign investors. The article mentioned that several state-owned enterprises...
  • Blog Post: Welcome to the FCPA: Chinese Companies and Reverse Mergers

    In a Wall Street Journal article on January 27, 2011 entitled " What's Behind China's Reverse IPOs ?", reporter Joseph Sternberg wrote that several Chinese companies were under investigation by the Securities and Exchange Commission (SEC) for "accounting irregularities"...
  • Blog Post: Disclosure and Negotiating with the Government – A FCPA Conundrum?-Part I

    All compliance programs are designed to prevent, detect and deter ethical violations. In the United States, they are also designed to bring companies into compliance with the Foreign Corrupt Practices Act (FCPA). However, as important as these programs are, it is equally important for a company to...
  • Blog Post: FIFA, the World Cup Selection and the FCPA

    One of the interesting facts of life that I have learned being married to an English woman is that what I thought of as 'Football' is really 'American Football'. The true game of 'Football' is played by the rest of the world. (She also decries the term 'World Series'...
  • Blog Post: FCPA Contractual Provisions in Alliance and Joint Venture Agreements

    As was recently shown by the RAE Systems, Inc., enforcement action , foreign Joint Ventures are still the bane for many companies under the Foreign Corrupt Practices Act (FCPA). Similarly Alliance or Consortium Agreements can place a US company at risk for the actions of others which may violate...
  • Blog Post: FCPA Risk Assessments: New Input into Current Best Practices

    We believe that Risk Assessment is a tool and is one with which a company should begin to craft its Foreign Corrupt Practices (FCPA) or UK Bribery Act compliance program. The simple reason is straightforward; one cannot define, plan for, or design an effective compliance program to prevent bribery...
  • Blog Post: Supply Chain Compliance Audit: The Apple 2011 Supplier Responsibility Report

    We believe that a key component of managing foreign business partners, including vendors in the Supply Chain under the Foreign Corrupt Practices Act (FCPA), is the right to audit. While others have indicated that they feel such a right is not a key component, one thing we all agree on is that if...
  • Blog Post: Foreign Joint Ventures: Dennis Haist and Some Characteristics of FCPA Risk

    In an article in the January/February issue of the ACC Docket , entitled " Guilt by Association: Transnational Joint Ventures and the FCPA " [membership required]; Dennis Haist , General Counsel of The Steele Foundation (Steele) discussed some of the risks US companies can encounter under...