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

Use of Specialized Counsel in a FCPA Investigation
Posted on 25 Oct 2010 by Thomas Fox

In an article entitled, " Risks and Rewards of an Independent Investigation " in the October 2010 issue of the ACCDocket , authors James McGrath and David Hildebrandt discuss the use of specialized outside counsel to lead an independent internal... 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

The End of the FCPA Facilitation Payment Exception?
Posted on 12 Nov 2010 by Thomas Fox

In November, 2009 the Organization for Economic and Co-operation and Development (OECD) announced a new recommendation at the OECD's celebration of "International Anti-Corruption Day" and the Tenth Anniversary of the " Entry into... Read More

Top 3 FCPA Cases of 2010-Part III HP and (Lots of) Red Flags
Posted on 19 Jul 2010 by Thomas Fox

This article concludes our series on what we believe to be the Top 3 Foreign Corrupt Practices Act (FCPA) cases in the first half of 2010. We have reviewed the facts surrounding each matter to come up with lessons that the FCPA compliance professional... 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

Questions, Questions and More Questions: Foreign Courts and the FCPA
Posted on 4 Jan 2011 by Thomas Fox

Inspired by our colleague, the FCPA Professor , this post will pose several questions regarding the Foreign Corrupt Practices Act (FCPA) in connection with one of the most Byzantine litigation matters of current renown, that being Chevron's legal... 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

FCPA Training: How to “Resist” a Solicitation for a Bribe
Posted on 13 Aug 2010 by Thomas Fox

At most Foreign Corrupt Practices Act (FCPA) compliance and ethics training sessions there is usually one or more archetypal story about "someone I know" who was solicited to pay a bribe or "I heard about someone" from whom a bribe... 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

Suspension of FCPA in NOT the Solution
Posted on 6 Apr 2010 by Thomas Fox

Should enforcement of the Foreign Corrupt Practices Act (FCPA) be suspended for those US companies now working in Haiti? This topic has been in discussion for a few weeks. It began with a statement by Wall Street Journal editorial board member Mary... Read More

Fraud Investigation and the UK Bribery Act
Posted on 29 Oct 2010 by Thomas Fox

We were recently introduced to Fraud Examiner Expert Tracy Coenen , in her book " Expert Fraud Investigation: A Step-By-Step Guide " she details the steps a company should go through in performing a fraud investigation. Coenen provides the... Read More

Who Will Have the Better Season?
Posted on 23 Apr 2010 by Thomas Fox

The baseball season is upon us and the Houston Astros have opened with their worst start since 1983. At 3-9, things may be looking a bit bleak for the hometown heroes. However several sportswriters have pointed out that the 1983 team ended up with... Read More

When a Rose is not a Rose but an FCPA Violation
Posted on 6 Jul 2010 by Thomas Fox

We recently wrote about gifts and entertainment under the Foreign Corrupt Practices Act (FCPA). To view the prior article, click here . This week the Securities and Exchange Commission (SEC) announced an enforcement action involving Veraz Networks. The... Read More

Changes Coming: US Sentencing Guidelines, UK Bribery Bill & OECD on Facilitation Payments-Part I
Posted on 19 Apr 2010 by Thomas Fox

At its April 7, 2010 meeting the United States Sentencing Commission approved amendments to its Sentencing Guidelines . The next day on April 8, 2010, the UK Bribery Bill received Royal Assent. These two events follow the December 9, 2009 release... Read More

  • Blog Post: Internal Review of a Proposed Foreign Business Partner

    In prior blogs, we explored how to rank Foreign Business Partners so that you can begin an appropriate due diligence process. We also explored what you might wish to investigate during the due diligence process. A Foreign Business Partner Review Committee should be established which is tasked with...
  • Blog Post: More FCPA Guilty Pleas

    The FCPA and foreign bribery continue to be a key focus of DOJ. On Tuesday, a privately-held U.S. export company along with its founder and one of its employees pleaded guilty to conspiracy, violations of the FCPA and the Travel Act and money laundering in connection with business transactions in...
  • Blog Post: Suspension of FCPA in NOT the Solution

    Should enforcement of the Foreign Corrupt Practices Act (FCPA) be suspended for those US companies now working in Haiti? This topic has been in discussion for a few weeks. It began with a statement by Wall Street Journal editorial board member Mary Anastasia O'Grady in a piece entitled "...
  • Blog Post: UK Bribery Bill Update

    It appears that the UK Bribery Bill, introduced in March 2009, made it out of Parliament before the upcoming general election. The Bribery Bill is a significant departure for the UK in the area of foreign anti-corruption. It is significantly stronger than the FCPA. Many internationally focused US...
  • Blog Post: FCPA Compliance and Continuous Controls Monitoring

    In a 2008 speech to the Texas General Counsel Forum, former United States Deputy Attorney General Paul McNulty provided his perspective on Foreign Corrupt Practices Act (FCPA) compliance investigations and the Department of Justice (DOJ) enforcement actions. From his experience as the former second...
  • Blog Post: Changes Coming: US Sentencing Guidelines, UK Bribery Bill & OECD on Facilitation Payments-Part I

    At its April 7, 2010 meeting the United States Sentencing Commission approved amendments to its Sentencing Guidelines . The next day on April 8, 2010, the UK Bribery Bill received Royal Assent. These two events follow the December 9, 2009 release by the Organization for Economic Co-Operation and...
  • Blog Post: Who Will Have the Better Season?

    The baseball season is upon us and the Houston Astros have opened with their worst start since 1983. At 3-9, things may be looking a bit bleak for the hometown heroes. However several sportswriters have pointed out that the 1983 team ended up with a winning record, at 85-77. Things may be looking...
  • Blog Post: Oversight Committee and Management of Foreign Business Partners

    We have previously blogged on the various stages of the relationship that a US company would travel through with a Foreign Business Partner, from the pre-relationship due diligence to the post-contract execution management. (See Here , Here and Here ) One of the key elements in all of these stages...
  • Blog Post: What Is the Cost of FCPA Compliance? Or What Is the Cost of Non-Compliance?

    How do you measure the cost of poor performance? In the baseball world how do you measure the cost of the Houston Astros abysmal April and equally poor start in May, which is projected to lead to a 50-108 season record? One measure is the number of people who pay to come out to the ballpark. As reported...
  • Blog Post: Real Estate, Trial Lawyers and FCPA Compliance

    What do real estate, trial lawyers and Foreign Corrupt Practice Act (FCPA) compliance have in common? One of the maxims you hear about the real estate business, even in the depressed market over the past 18 months, is that the three most important things are: (1) location, (2) location and (3) location...
  • Blog Post: The Role of Human Resources in FCPA Compliance-Part I

    One sign of a mature Foreign Corrupt Practices Act (FCPA) compliance and ethics program is the extent to which a company's Human Resources (HR) Department is involved in implementing a solution. While many practitioners do not immediately consider HR as a key component of a FCPA compliance solution...
  • Blog Post: The Role of Human Resources in FCPA Compliance-Part II

    In an earlier post , we discussed that one sign of a mature Foreign Corrupt Practices Act (FCPA) compliance and ethics program is the extent to which a company's Human Resources (HR) Department is involved in implementing a compliance solution. In the prior posting we discussed training, employee...
  • Blog Post: Lanny Breuer Addresses Corporate Ethics and Compliance at Compliance Week

    Assistant Attorney General for the Criminal Division of the U.S. Department of Justice (DOJ), Lanny Breuer gave the final day's keynote speech at the Compliance Week 2010 Conference . Many of his remarks were directed at the ethics and compliance professionals who attended the event. He confirmed...
  • Blog Post: An Effective FCPA Compliance Program-Thoughts of Lanny Breuer

    At the recent Compliance Week 2010 Annual Conference one of the issues discussed by Assistant Attorney General, for the Criminal Division of the US Department of Justice, Lanny Breuer, was what the Department of Justice (DOJ) might consider as an "effective compliance and ethics program"...
  • Blog Post: This Week in Securities Litigation (June 4, 2010)

    SEC enforcement this week brought another SOX claw back case, as well as actions alleging financial fraud and another investment fund case. DOJ dropped their appeals in the two Broadcom criminal option backdating cases which were dismissed for prosecutorial misconduct. DOJ's action finally brought...
  • Blog Post: Mickey, Donald and the FCPA

    The Foreign Corrupt Practices Act (FCPA) enforcement arena is scattered with US companies which have gone many miles past the extra mile in providing travel and entertainment. Most practitioners will recall the Lucent Technologies 2007 enforcement action. Between 2001 and 2003 Lucent provided trips...
  • Blog Post: FCPA Reporting-To Whom Does Your CCO Report?

    There is an ongoing debate in the compliance arena as to whom a Chief Compliance Officer (CCO) should report. Should the CCO report to the Board of Directors or appropriate Board committee such as an Audit Committee or Compliance Committee? Or can a CCO report to a company's General Counsel ...
  • Blog Post: Gifts and Business Entertainment under the FCPA

    If one were to reflect upon the providing of gifts and business entertainment to foreign governmental officials by a US Company, one might reasonably conclude that after 30 odd years of the Foreign Corrupt Practices Act (FCPA), US companies might follow its prescriptions regarding gifts and business...
  • Blog Post: When a Rose is not a Rose but an FCPA Violation

    We recently wrote about gifts and entertainment under the Foreign Corrupt Practices Act (FCPA). To view the prior article, click here . This week the Securities and Exchange Commission (SEC) announced an enforcement action involving Veraz Networks. The enforcement action generally revolved around what...
  • Blog Post: Top Three FCPA Hits of 2010: The Gun Sting Case

    As we enter the second half of 2010 it is time to review what we believe to be three of the more significant Foreign Corrupt Practices Act (FCPA) matters which came to significant public attention in the first half of this year. We will review the (Ding Dong) Avon Calling matter revolving around its...
  • Blog Post: Top 3 FCPA Cases Of 2010 Part II-(Ding Dong) Avon Calling

    This is the second installment of our three part series on the Top 3 Foreign Corrupt Practices Act (FCPA) matters of 2010 to date and their significance for the FCPA compliance professional. In Part I we focused on the Gun Sting matter . Now we turn our attention to the Avon bribery scandal in China...
  • Blog Post: It Does Not Take Much to Get You Into FCPA Trouble

    The recent FCPA enforcement actions brought against Veraz Networks, Inc. shows that it does not take huge piles of money to get in trouble. Veraz admitted to making improper payments of only $40,000 . Not that $40,000 is an insignificant amount. It just pales in comparison to the huge dollars we...
  • Blog Post: Top 3 FCPA Cases of 2010-Part III HP and (Lots of) Red Flags

    This article concludes our series on what we believe to be the Top 3 Foreign Corrupt Practices Act (FCPA) cases in the first half of 2010. We have reviewed the facts surrounding each matter to come up with lessons that the FCPA compliance professional might use to assist putting forward a FCPA compliance...
  • Blog Post: Anti-Corruption, the FCPA and the (Apparent) Failure to Escalate

    At the recent Corporate Counsel Institute - Europe put on by Georgetown University Law , participant Matthew King, Group Head of Internal Audit at HSBC was interviewed by Project Counsel Founder Gregory P. Bufithis on his opinion regarding one of the more important elements for implementing a successful...
  • Blog Post: The FCPA and Tone at the Top

    Both the US Sentencing Guidelines and the Organization for Economic Co-operation and Development (OECD) Good Practice Guidance on Internal Controls, Ethics, and Compliance consider one of the key items for a best practices compliance program to be the appropriate "Tone at the Top." The...