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
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 is hotbed for violations of the Foreign Corrupt
Practices Act. The real estate industry is not immune from the dangers. In
February of 2009 Morgan Stanley's real estate group reported an employee based in China in an overseas real
estate subsidiary that appeared to have violated the Foreign...
For reasons I am sure they find good and sufficient,
Chinese companies have been seeking listings on the U.S. securities exchanges.
The Chinese companies (or at least some of them) have also been discovering an
added side-effect of a U.S. listing - that is, exposure to a class action
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"...
Well, kind of, but. The latest Reverse Merger Report
talks about the fact that short sellers have been focusing on alleged
differences between filings by public Chinese companies with their government
as compared to what is filed in the US with the SEC and made available to the
With four more securities suits involving Chinese or
China-linked companies this past Friday, the phenomenon of securities class
action lawsuits against these firms has emerged as one of the most distinct
securities litigation trends so far this year. The filing trend actually first
emerged in the...
For several years, Friday has been the day when the
latest bank closures are announced (about which see further below). More
recently, Friday also seems to be the day when the latest securities class
actions involving Chinese companies are announced. This past Friday alone,
three more securities...
Even though the story has been brewing
for months , the mainstream media and the SEC suddenly seem to have decided
that the alleged accounting frauds involving certain U.S.-traded Chinese
companies are the central story of the moment. You can hardly pick up the
business papers or turn on the television...
The SEC and the DOJ resolved another bid-rigging case related to anticompetitive practices in the municipal securities markets. This is one of a series in an ongoing investigation. The SEC also prevailed on a summary judgment motion in an investment fraud action, filed a settled financial fraud case...
Several news outlets are reporting that a Chinese shopping website may have been outed last week as a Ponzi scheme, with the number of victims estimated in the hundreds of thousands and rumors that the founder had skipped town along with senior executives and the bulk of investor funds. While Yao Jianqing...
A path to U.S. citizenship premised on an immigration
program crafted to help create jobs, and surrounded with misrepresentations and
false documents was the lure used by Anshoo Seithi and his controlled entities
to defraud 250 investors of millions of dollars, according to an SEC complaint.
The SEC's action seeking to compel the production of
documents from the Chinese affiliate of Deloitte and Touche is moving toward
resolution. The Court rejected a request by the audit firm for a stay pending
the resolution of a Commission administrative proceeding which is based on
There may be a beginning to the end of the battle between
U.S. and Chinese regulators over audit work papers relating to People's Republic
of China (PRC)-based firms. The Public Accounting Oversight Board (PCAOB) announced
a memorandum of understanding ( MOU) with its Chinese counterparts which...
Lawrence Blitz v. AgFeed Industries, Inc., Goldman Kurland & Mohidin LLP, McGladrey & Pullen LLP , et al is a securities fraud class action where investors claim the company’s expansion was “fueled in large part by fraud.” AgFeed began in the 1990’s as a Chinese manufacturer...
The SEC and the People's Republic of China (PRC)-based affiliates of five major accounting firms entered into a settlement of proceedings initiated over the failure to produce audit work papers for issuers with substantial operations in China. The settlement, which provides a mechanism for governing...