The FCPA Report

The definitive source of actionable intelligence covering the Foreign Corrupt Practices Act

Current Issue Headlines

Vol. 5, No. 9 (May 4, 2016) Print IssuePrint This Issue

  • How Will the Fraud Section’s Pilot Program Change Voluntary Self-Reporting? (Part Two of Three)

    Over the last year the DOJ has made a number of policy statements that make it abundantly clear that it wants companies’ help in identifying and prosecuting corruption. The Yates Memo and changes to the U.S. Attorneys’ Manual drove home the Department’s focus on prosecuting individuals. Its recent announcement of a pilot program, specific to the Fraud Section’s FCPA Unit, underlined the Department’s desire for companies to come forward and self-report FCPA violations. As discussed in the first article in this three-article series, while the program may not represent much of a change in enforcement, it was meant to increase transparency on how prosecution and settlement decisions are made within the FCPA Unit. However, several aspects of the program and the related guidance fail to clear up concerns companies have raised in the past and, in some instances, introduce greater confusion. The FCPA Report spoke with former DOJ prosecutors to get their insights on this uncertainty and how the pilot program might – or might not – change a company’s self-disclosure calculus. See “Ceresney and Caldwell Remarks Highlight New SEC Self-Reporting Policy, Cooperation, Remediation and Transparency” (Dec. 2, 2015).

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  • Using Data Analytics to Meet the Government’s Anti-Corruption Compliance Expectations

    The SEC and DOJ’s FCPA Resource Guide outlines ten “Hallmarks of an Effective Compliance Program” that provide prescriptive guidance about what the DOJ and the SEC consider to be critical components of an effective compliance program. But, what are compliance officers and chief audit executives to do in response to this regulatory “perfect world” of compliance? With limited resources and competing priorities in the real world, where should compliance officers and chief audit executives focus their efforts to meet this guidance? The answer is data analytics, Grant Thornton’s Bill Olsen, Dan Reynolds and Alex Koltsov say in a guest article. They argue that when used properly, data analytics is proactive, risk-based, scalable, repeatable and defensible against after-the-fact scrutiny. The article focuses on how two regulatory program “hallmarks,” ABAC risk assessment and continuous improvement and monitoring, can be addressed by data analytics. See also “Ernst & Young Experts Reveal How Forensic Data Analytics Can Transform Anti-Corruption Compliance” (Apr. 30, 2014).

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  • Employee Interviews in Internal Investigation After Yates: A Conversation With Quinn Emanuel and EY

    Although the long-term impact of the recent policy developments coming out of the DOJ is not certain, one thing appears to be – the Yates Memo will change the tenor of employee interviews conducted during internal investigations. In the past, employees might have been eager to participate to save their jobs, but now many more may be reluctant to cooperate with investigators at all, or may put conditions on their participation. The FCPA Report spoke with Quinn Emanuel partners William Burck and Ben O’Neill, as well as Stephen Spiegelhalter, a principal in the fraud investigations and dispute services practice at EY, about the new reality of interviewing employees during investigations. On May 16, 2016, Burck, O’Neill and Spiegelhalter will participate in a symposium hosted by Quinn Emanuel and The FCPA Report on this and other issues related to conducting internal investigations and negotiating with the government in light of the Yates Memo and the new DOJ Pilot Program. For more information on the symposium and to register, please contact Max Humphrey at mhumphrey@fcpareport.com.

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  • Effective FCPA Compliance Strategies in the Wake of the Panama Papers

    The Panama Papers leak of 11.5 million documents related to offshore banking and the use of shell companies in “tax havens” has ushered in a period of renewed focus on monitoring, tracking and justifying transactions with offshore companies, particularly those in low or no tax jurisdictions that lack transparency. In a guest article, Nicholas M. Berg and Kim B. Nemirow, partners at Ropes & Gray, and Jaime Orloff Feeney, an associate there, analyze the developments in the Panama Papers case, the potential liability theories stemming from the case, how the case has changed the FCPA enforcement environment, and how companies can ensure their controls are sufficiently tailored to the various risks presented by anonymous shell corporations. See “Structuring FCPA Books and Records Controls to Withstand SEC Scrutiny Without Impairing Sales” (Mar. 20, 2013).

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  • Directors and CCOs Share Insights on Maximizing a Board’s Impact on Compliance

    How can a board best shape and support a company’s compliance efforts? At Ethisphere’s 2016 Global Ethics Summit, a panel featuring directors, executives and compliance experts from JLL, AT&T, U.S. Steel Corporation, Walmart, ManpowerGroup and PwC discussed the challenges boards face and best practices for approaching compliance issues. See also “How the Board and Compliance View Each Other” (Sep. 23, 2015).

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  • Corporate Governance Is Key to Avon’s FCPA-Related Civil Settlements

    The ramifications of corporate FCPA cases often extend beyond a settlement with the DOJ or SEC, as evidenced by the civil cases against Avon. The company, which resolved FCPA charges in December 2014 with the DOJ and SEC for $135 million, recently announced that it has settled several pending shareholder derivative and books and records lawsuits stemming from those FCPA allegations. The actions include claims for failure to comply with the FCPA, inadequate internal controls, breach of fiduciary duty, corporate waste and unjust enrichment. In addition to mutual releases, and the payment by Avon of a portion of the plaintiffs’ legal fees, a cornerstone of the settlement is Avon’s undertaking to adopt or maintain certain corporate governance measures aimed at assuring FCPA compliance. See also “Avon Class Action Dismissal Illustrates Challenges of FCPA-Related Shareholder Derivative Suits” (Oct. 22, 2014).

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  • Sidley Welcomes Heidi Levine in New York

    Sidley Austin recently welcomed Heidi Levine as a partner and member of the firm’s products liability practice. Levine’s practice focuses on products liability and mass torts, especially in pharmaceutical and medical device litigation. Her practice also includes FCPA investigations in the global pharmaceutical and medical device industry. Prior to joining Sidley, she was the New York co-managing partner of DLA Piper.

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  • Former Federal Prosecutor Rejoins Bartko, Zankel, Bunzel & Miller

    Bartko, Zankel, Bunzel & Miller recently announced that former federal prosecutor Charles “Chuck” La Bella has rejoined the firm as of counsel and will focus primarily on white collar defense, complex business litigation, internal corporate investigations, as well as enforcement and privacy work. La Bella worked as a federal prosecutor for more than 20 years, including serving most recently as Deputy Chief of the Fraud Section of the DOJ.

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  • Nardello & Co. Expands Asia Pacific Practice With the Appointment of Amie Chang

    Nardello & Co. recently announced that Amie Chang was appointed head of the firm’s Hong Kong office. Her arrival is part of the firm’s expansion in the region and precedes the June 1st opening of its Tokyo office. Chang, who joins Nardello & Co. as an associate managing director, is a former U.S. diplomat and experienced investigator. In her new role, she will oversee investigations in China, collaborate on other regional and multi-jurisdictional engagements and work as part of the team to further expand the firm’s growth and capabilities.

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