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.

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.