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Harry Cassin
Publisher and Editor

Andy Spalding
Senior Editor

Jessica Tillipman
Senior Editor

Bill Steinman
Senior Editor

Richard L. Cassin
Editor at Large

Elizabeth K. Spahn
Editor Emeritus

Cody Worthington
Contributing Editor

Julie DiMauro
Contributing Editor

Thomas Fox
Contributing Editor

Marc Alain Bohn
Contributing Editor

Bill Waite
Contributing Editor

Shruti J. Shah
Contributing Editor

Russell A. Stamets
Contributing Editor

Richard Bistrong
Contributing Editor

Eric Carlson
Contributing Editor

A Baker’s Half Dozen FCPA Issues for the First Half of 2012

I. Declinations in the News-the Department of Justice responds to many commentators, including this one, and releases it first Declination; laying out the reasons why Morgan Stanley was not prosecuted, when its Managing Director Garth Peterson was, for violating the FCPA.

II. ROI for a Compliance Program Explained-Ever wonder about the ROI for having a compliance program? Check out the ROI for having a FCPA investigation. Enough said.

Company

Length of Investigation

Reported Investigation Costs

Weatherford

2009 to date

$123MM

News Corp

July 2011 to date

$191MM

Avon

2008 to date

$247MM

III. How Big is Big?when the world’s biggest retailer lands on the front page of the Sunday New York Times with allegations of bribery and corruption; followed by a lack of interest by the corporate home office in investigating the allegations, its BIG, as in REALLY BIG. As an added gift, the Wal-Mart case “torches FCPA reform”.

IV. What’s New in M&A?the Department of Justice’s thinking on FCPA/M&A/how to avoid ‘buying a FCPA violation’ continues to evolve as shown in the Attachment C to the DS&S Deferred Prosecution. Companies can now perform a full FCPA audit, institute a compliance program and train the acquired company employees “as soon as practicable.”

V. A Rose is Still a Rose-the Department of Justice answers that question only a finely honed legal mind could perceive-does a company have the same FCPA liability for the acts of its distributors as it does for the acts of its agent? Er, yes.

VI. We Have no Bananas and We Still Don’t Like Stings-the Department of Justice’s second trial in the cases of the Gun Sting defendants goes belly up and the Department throws in the towel by dismissing all claims in the case. 21 individuals arrested=no convictions.

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Thomas Fox is the creator and writer of the widely-read FCPA Compliance and Ethics Blog. His book Lessons Learned on Compliance and Ethics topped Amazon’s bestseller list for international law. He can be contacted here.

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1 Comment

  1. A Baker's dozen is 13, which means a baker's half dozen is 6.5. You are missing .5 FCPA issues.


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