The FCPA Report

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

Current Issue Headlines

Vol. 4, No. 4 (Feb. 18, 2015) Print IssuePrint This Issue

  • Private Equity FCPA Enforcement: High Risk or Hype?

    Extraction, engineering, pharmaceuticals and medical device manufacturers — FCPA prosecutors have already swept through these industries. Are private equity firms next?  In a guest article, Laurence A. Urgenson, Joseph De Simone, Audrey L. Harris, Matthew A. Rossi, Matthew Alexander and Melanie M. Burke, attorneys at Mayer Brown LLP, assert that, using Dodd-Frank and the SEC’s new presence exams, the government may very well turn its attention towards the private equity industry.  They detail the enforcement landscape, the bribery risks for private equity firms (among other things: hiring practices, sovereign wealth funds, acquisitions and joint ventures) and best practices to mitigate those risks.  See also “Buyer Beware: Understanding and Mitigating Parent Company FCPA Liability in the Context of Private Equity Acquisitions,” The FCPA Report, Vol. 2, No. 15 (Jul. 24, 2013).

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  • Inside the Mind of Corporate Monitor John Hanson: Monitorship Insights and a Sneak Peek at the ABA’s Corporate Monitor Standards (Part Two of Two)

    One of the most consequential elements of an FCPA settlement can be the mandatory engagement of a monitor.  Although monitors in FCPA cases are less common than they were several years ago, many companies are still required to use a monitor in some capacity.  The American Bar Association is in the process of adopting Standards for corporate monitors to assist companies, government agencies and monitors themselves in making the monitorship process more effective and efficient.  Those Standards have been reviewed by the ABA’s Criminal Justice Section and will likely be released sometime in the next year.  The FCPA Report discussed the forthcoming Standards – and got behind the scenes of various monitorships – with Monitor Standards Committee member and experienced monitor John Hanson.  In this, the second in a two-part interview, Hanson outlines several portions of the Standards that will be particularly useful to companies, monitors and the government; explains cost-control measures included in the Standards; and offers his insight on monitor reporting requirements.  In the first article in the series, he discussed the development of the Standards and explained the most-debated points in the Standards and the thorny issues he has faced as a monitor.  See also “How to Find a Business-Minded Compliance Monitor and Minimize Reporting Requirements When Negotiating an FCPA Settlement (Part One of Three),” The FCPA Report, Vol. 2, No. 4 (Feb. 20, 2013); Part Two of Three, Vol. 2, No. 5 (Mar. 6, 2013); Part Three of Three, Vol. 2, No. 6 (Mar. 20, 2013).

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  • Identifying and Addressing FCPA Exposure for Lenders

    FCPA risk for lenders may not be as intuitive as it is in other industries, but lenders are subject to FCPA scrutiny, Bridget Marsh, Deputy General Counsel of the Loan Syndications and Trading Association (LSTA) and Jeanine P. McGuinness, counsel at Davis Polk & Wardwell, said at a recent presentation sponsored by the LSTA.  Marsh and McGuinness considered the specific corruption risks lenders face and offered tips on how lenders may mitigate that risk through borrower due diligence and contractual provisions.  See also “International Corruption Risks Facing Financial Institutions,” The FCPA Report, Vol. 1, No. 4 (Jul. 25, 2012).

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  • Navigating Corruption Challenges in India

    With its lucrative domestic market, skilled workforce and competitive labor costs, India presents enticing investment opportunities but also significant corruption risk.  The corruption landscape there is a dynamic one, however, with citizens of the world’s largest democracy questioning the ability of elected representatives to serve the national interest and pushing for reform.  In a guest article, Ropes & Gray attorneys Alexandre H. Rene, Kim B. Nemirow and Nikhil Sud discuss the extent and nature of corruption in India; recent and ongoing efforts to fight corruption; and three steps that will help foreign investors successfully navigate the risks India poses and tap into India’s fertile market.  See also “Doing Business in India: Avoiding Corruption Risks and Monitoring Compliance Programs,” The FCPA Report, Vol. 3, No. 12 (Jun. 11, 2014).

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  • How to Mitigate FCPA Risk Before and After an Acquisition

    Robust pre-acquisition due diligence can prevent the purchase of a costly FCPA violation along with the target company.  During a recent webinar hosted by Strafford Publications, experts Thaddeus R. McBride, a partner at Bass Berry & Sims and Brian Moffatt, Senior Compliance Counsel at EthosEnergy, discussed the importance of FCPA awareness in the mergers and acquisitions space.  This article outlines the risks associated with M&A as well as some of the best practices the panelists discussed for addressing those risks.  See also “Checklist of Actions to Take and Factors to Consider When Conducting Pre-Merger Anti-Corruption Due Diligence,” The FCPA Report, Vol. 2, No. 19 (Sep. 26, 2013).

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  • International Anti-Corruption Enforcement Roundup

    Teva discloses possible FCPA violations.  The Eleventh Circuit affirms a money-laundering conviction in the Haiti Teleco case.  U.K.’s Serious Fraud Office secures its first contested convictions for overseas bribery.  Indonesia’s KPK re-examines suspects in the Innospec bribery case.  Chinese antitrust chief emphasizes supporting innovation with competition enforcement.  The World Bank bans an Indian company for alleged fraudulent activities and agrees to work with Brazil’s Attorney General to advance cooperation on corruption risk management.  The Petrobras debacle continues to unfold: The company recently named a new CEO and announced that it will revise its method of calculating corruption-related losses.  Meanwhile, the nine largest U.S. holders of Petrobras ADRs claim to have lost more than $50 million each from the investment.

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  • Former SDNY Chief of Complex Frauds and Cybercrime Joins Paul, Weiss

    Paul, Weiss, Rifkind, Wharton & Garrison recently announced that Richard C. Tarlowe, Chief of the Complex Frauds and Cybercrime Unit of the U.S. Attorney’s Office for the Southern District of New York and a former member of its Securities & Commodities Fraud Task Force, will join the firm as counsel in its litigation department, where he will focus on white collar criminal defense, cybercrime, government investigations and high-stakes litigation.

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  • Former U.S. Attorney Timothy Heaphy to Lead Hunton & Williams’ White Collar Investigations Practice

    On February 9, 2015, Hunton & Williams announced that former United States Attorney Timothy J. Heaphy has joined the firm as a partner in its Washington and Richmond offices.  Heaphy, who had been U.S. Attorney for the Western District of Virginia since 2009, will become head of the firm’s white collar defense and internal investigations practice.

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