Skip to content

Editors

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

Search Results for: label/Promotional Expenses

Best Intentions: The Problem of Promotional Expenses

The affirmative defense for promotional expenses has always been a riddle, which explains why it appears so often among the Justice Department’s Opinion Procedure Releases, including both Releases so far this year. Congress added it to the U.S. Foreign Corrupt Practices Act in 1988, to allow businesses to pay travel expenses of foreign officials. […]

Read More »

Defending The Defense

By Thomas Fox
I want to thank Kyle Sheahen for his recent post and paper arguing that the promotional expenses defense under the FCPA is illusory. His work has stimulated a useful debate.
From a perspective different than previous commenters (here), I’d like to state the case for the value […]

Read More »

An Expenses-Paid Training Program For Foreign Officials Is OK

[…] of 2007, the Department of Justice again looked at promotional expenses. An affirmative defense in the U.S. Foreign Corrupt Practices Act allows payment or reimbursement of expenses of foreign officials that are directly related to “the promotion, demonstration, or explanation of products or services.” 15 U.S.C. §§ 78dd-1(c)(2)(A) and 78dd-2(c)(2)(A).
The DOJ said it […]

Read More »

Promotional Expenses: Corrupt But Reasonable?

[…] Here’s Kyle’s reply:
Dear FCPA Blog,
My thanks to everyone who responded with posts and comments. As Tom Fox thoughtfully said, the debate about promotional expenses is both useful and important, particularly because many corporations construct compliance programs in accordance with the language of the defense.  
My article attempts to identify the […]

Read More »

A Gold Medal For Opinion Procedure Release 08-03

[…] reimburse them. But because most media outlets in the PRC are state-owned, the journalists are “foreign officials” under the Foreign Corrupt Practices Act. That means paying their expenses might violate the FCPA.
Facing this dilemma, foreign companies either don’t pay the journalists anything and pass up domestic press coverage for their events in China, or […]

Read More »

Guidelines for Promotional Expenses Under FCPA Affirmative Defense

In its first Opinion Procedure Release of 2007, the Department of Justice said it would take no action against a requestor proposing to cover some expenses for a U.S. trip by six officials of an Asian government. The DOJ based its opinion on the requestor’s representations, consistent with the FCPA’s promotional expenses affirmative defense, […]

Read More »

Lucent Settles FCPA Violations For $2.5 Million

It Misused Affirmative Defense For Promotional Expenses Lucent Technologies Inc. settled U.S. Foreign Corrupt Practices Act charges with the Department of Justice and the Securities and Exchange Commission for $2.5 million. The settlement includes a $1 million criminal fine and $1.5 million in civil penalties. Lucent’s violations involved promotional expenses for Chinese government officials. The […]

Read More »

Second subpoena in SciClone China probe

SciClone Pharmaceuticals Inc. said Friday that an investigation launched three years ago into possible FCPA violations in China is ongoing and the SEC has issued a new subpoena focused on ‘sales and marketing expenses’ by its NovaMed unit there.

Read More »

Fapiaos (Part 4, conclusion): How to minimize the compliance risk

[…] third parties to submit individual fapiaos for their own expenses. Third parties engaged by a company (e.g., a conference organizer, travel agency, consultant) sometimes need to incur expenses in connection with the services they provided. Third parties submit a single, combined fapiao that includes these expenses in addition to whatever service fee the third […]

Read More »