Entries tagged: fcpa

Thinking Positively About International Compliance

By: Jack Harrington, Esq.

Posted: July 28th, 2017

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Companies tend to think about corporate functions as one of two things: a revenue center or a cost center.  An employee or division of a company either makes money or costs money. Human Resources, for instance, is typically considered a supporting function: a cost center.  A sales team, by contrast, is a revenue center.  Companies […]

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JP Morgan Pays $264 Million to Resolve “Princelings” FCPA Investigation

By: Jack Harrington, Esq.

Posted: December 20th, 2016

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Last month, JP Morgan entered into a landmark settlement agreement in which it agreed to pay $264.4 million to the DOJ, SEC, and Federal Reserve to resolve Foreign Corrupt Practices Act (“FCPA”) offenses for providing jobs to the relatives of Chinese government officials to secure the underwriting of Chinese state-owned companies’ initial public offerings (“IPO”).  […]

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The Internationalization of Anti-Corruption Investigations and Enforcement

By: Jack Harrington, Esq.

Posted: November 28th, 2016

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In November 2016, France adopted new anti-corruption legislation permitting deferred prosecution agreements in bribery cases.  In July 2017, Mexico’s new anti-corruption law will take effect.  The more-stringent law should prompt all companies operating in Mexico to re-evaluate their anti-corruption compliance programs.  And in February of this year, China released draft amendments of a new law […]

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When a Charitable Donation is a Bribe

By: Jack Harrington, Esq.

Posted: October 26th, 2016

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    On September 20, 2016, Nu Skin Enterprises, Inc., a Utah-based skincare products manufacturer, agreed to pay $765,688 to settle SEC charges that the company violated the Foreign Corrupt Practices Act (“FCPA”).  In short, the FCPA prohibits U.S. companies from bribing foreign officials to secure an improper business advantage.  As I have written about […]

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How to Avoid a “Paper” Anti-Corruption Compliance Program

By: Jack Harrington, Esq.

Posted: September 16th, 2016

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    In December 2008, Siemens AG, Europe’s largest engineering and electronics conglomerate, settled Foreign Corrupt Practices Act (“FCPA”) charges with the DOJ and SEC for a record-setting $800 million. Aside from the scope of the violations and the size of the penalties, the Siemens case was noteworthy because it so clearly criticized the deficiencies […]

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Life Science Companies under Increasing DOJ and SEC Scrutiny for Anti-Corruption Enforcement

By: Jack Harrington, Esq.

Posted: August 23rd, 2016

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The pharmaceutical and medical device industry has always been among the most heavily regulated in the United States.  In recent years, however, these companies have become the subject of another regulatory and law enforcement focus: the Foreign Corrupt Practices Act (FCPA). The FCPA is a federal law that prohibits U.S. persons, companies, and issuers from, […]

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Lessons Learned From The Novartis FCPA Settlement

By: Jack Harrington, Esq.

Posted: July 25th, 2016

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    Last spring, Swiss pharmaceutical giant Novartis AG paid $25 million to the SEC to settle Foreign Corrupt Practices Act (“FCPA”) charges relating to its operations in China.  According to the SEC’s internal administrative order, Novartis subsidiaries in China bribed government-affiliated doctors and healthcare professionals—who qualify as “foreign officials” under the FCPA—to increase sales […]

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Princelings: Expanding the Definition of “Value” Under the FCPA

By: Jack Harrington, Esq.

Posted: May 6th, 2016

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    Congress enacted the Foreign Corrupt Practices Act (“FCPA”) in 1977 in the wake of the Watergate investigation and in response to reports of widespread bribery of foreign officials by U.S. companies.  The FCPA prohibits U.S. persons, companies, and issuers from, among other things, bribing or attempting to bribe a foreign official in order […]

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The SEC Reminds Us: An Ounce of Prevention is Worth a Pound of Cure

By: Jack Harrington, Esq.

Posted: November 20th, 2015

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On November 4, 2015, Andrew Ceresney, the head of the Security and Exchange Commission’s (“SEC”) enforcement division, delivered the keynote address to the National Society of Compliance Professionals’ annual meeting.  The key takeaway from Mr. Ceresney’s remarks is that is the compliance function—and specifically the role of the Chief Compliance Officer (“CCO”)—is more important than […]

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