Wave of Indictments from Largest Ever FCPA Investigation: More Action Ahead?

Wave of Indictments from Largest Ever FCPA Investigation: More Action Ahead?

 
Longtime readers know  I have frequently argued that claims related to the enforcement of the Foreign Corrupt Practices Act are a growing source of liability exposure for companies and their senior officials, a stand that has made me the subject of occasional derisive comments. One reader recently suggested to me that I am "obsessive" about the topic. But after yesterday’s massive indictment of 22 individuals as a result of an FBI sting -- the DoJ’s largest FCPA-related investigative action ever -- I think my occasional critics will have to agree that enforcement activities really do represent a significant corporate exposure that must be taken very seriously.
 
As reflected in the Department of Justice’s January 19, 2010 press release (here), the 22 individuals were indicted for engaging in schemes to bribe foreign government officials. The indictments are the result of an FBI undercover operation that focused on allegations of foreign bribery in the military and law enforcement products industries.
 
The 16 separate indictments can be found here. Only individuals are named in the indictments; no companies have been named. The individuals worked for companies in the U.S, the U.K and Israel. All but one of the individuals was arrested while attending an industry convention in Las Vegas.
 
Read the entire article at D&O Diary, “a periodic journal containing items of interest from the world of directors’ and officers’ liability, with occasional commentary,” authored by Kevin LaCroix, a Partner in OakBridge Insurance Services, Beachwood, Ohio. OakBridge is an insurance intermediary focused exclusively on management liability issues. Kevin has been involved in directors’ and officers’ liability insurance issues for over 25 years. He began his career as a coverage attorney and partner at the Washington, D.C law firm of Ross, Dixon and Bell.  Contact Kevin LaCroix at OakBridge Insurance Services, 2000 Auburn Drive, Suite 200, Beachwood, OH 44122, (216) 378-7817 or klacroix@oakbridgeins.com.