DoJ

Recipe for Anti-Corruption Successes: Due Diligence, Diverse Messaging

May 08, 2012

Much goes into doing anti-corruption properly, but there are four broad categories that top companies focus on: assessing corruption risks, devising controls against them, implementing those controls and procedures with the local workforce, and then following up with constant monitoring. Inside, more lessons for building an effective anti-corruption program.
 

Big Compliance Burdens Coming for Mortgage Industry

February 28, 2012

The mortgage industry faces a host of new compliance challenges thanks to the $25 billion settlement reached with state and federal regulators this month, and expect no easy path to success. "Very little of this is able to be dealt with through automation," says Robert Bostrom of the law firm SNR Denton. "The whole point of this is to require human contact." Full details inside.
 

FTC Scrutinizing Information-Sharing Agreements

February 14, 2012

A recent FTC enforcement action against three businesses for collusion via an industry trade association is sounding alarm bells, since the practice is so common. A consent decree with one of the businesses even overturns established safe-harbor practices. "This should be of interest to any company involved in competitor information exchanges," says Kathryn Fenton of law firm Jones Day.
 

Yet Another Mortgage Crisis Enforcement Task Force

February 07, 2012

During his State of the Union Address, President Obama unveiled the Residential Mortgage-Backed Securities Working Group. It's just the latest in a string of government units tasked with investigating abuses that led to the financial crisis. So what will this group do differently that others, such as the Securities and Exchange Commission, haven't done? That seems to be an open question. More details inside.
 

Pharma Rang Up Record FCA Fines in 2011; 2012 Will Be Worse

January 24, 2012

No rest for compliance officers at government contractors: 2011 saw a record-setting $2.8 billion in penalties for the False Claims Act last year, with 2012 looking no better. Already GlaxoSmithKline is edging toward a $3 billion settlement, and industry totals this year could hit $9 billion. Among the violations that can snare drug companies is failure to return Medicare overpayments on time. More details inside.
 

SEC May Pursue More Negligence Cases

October 18, 2011

The SEC may be more willing to bring charges on the basis of negligence rather than the harder-to-prove standard of fraud with intent or recklessness. In a recent case, it charged three executives with fraud and a fourth, the chief financial officer, with negligence for signing off on the 10-K without checking the numbers. More details inside.
 

The Dos and Don'ts of Corporate Hospitality

July 26, 2011

Vigorous enforcement of the Foreign Corrupt Practices Act is causing some companies to second-guess their compliance efforts. In the latest example, a company recently asked the Justice Department for an advisory opinion on corporate hospitality questions that had already been clearly answered years ago. The Justice Department's (repeat) answer is inside.
 

How to Respond to a DoJ Investigation

April 19, 2011

Moving swiftly and decisively when the Justice Department or another government agency launches an investigation can make the difference in how the case proceeds. Companies deemed to be cooperating with investigators can expect better treatment and reduced fines. Inside, some dos and don'ts for responding to an investigation.
 

Lessons From J&J's $70 Million FCPA Settlement

April 19, 2011

Earlier this month Johnson & Johnson settled a Foreign Corrupt Practices Act case with the Justice Department for $70 million. The company scored points for having an effective compliance program, but will now be required to audit its anti-corruption program. It's just the latest case in a crackdown on FCPA violations. Details inside.
 

Report Details HSR Antitrust Reviews, Enforcement

February 23, 2011

2010 was a busy year for M&A activity and for antitrust enforcers who are on the lookout for deals that squelch competition; the number of transactions reviewed by antitrust agencies last year jumped 63 percent. The Federal Trade Commission ended up challenging 22 of them.
 

Anti-corruption Trends: What to Expect in 2011

February 22, 2011

A reminder for compliance professionals who think they've got Foreign Corrupt Practices Act compliance in the bag: Don't forget to do a regular gut check.
 

Compliance Community to DoJ: More Info Please

February 03, 2011

Compliance executives are asking the Justice Department to provide more information about when and how it gives credit to companies during enforcement actions for having strong compliance programs. A report called for the release of information on specific aspects that factored into enforcement decisions.
 

New HSR Thresholds Take Effect Feb. 24

January 31, 2011

Revised thresholds requiring companies to report proposed mergers and transactions to federal antitrust authorities take effect next month.
 

False Claims Recoveries Top $3 Billion in 2010

November 29, 2010

The Obama Administration is making good on its promise to crackdown on fraud against the government generally, and public healthcare programs in particular, according to the latest False Claims Act recovery statistics.The Department of Justice collected $3 billion in civil settlements and judgments in cases involving fraud against the government...
 

DoJ Assistant Attorney General Warns on FCPA Breaches

November 17, 2010

Concerned about Foreign Corrupt Practices Act compliance? You should be.Detailing a "new era" of FCPA enforcement, a top Justice Department official said those worried about more aggressive anti-bribery enforcement "are right to be more concerned.""Our FCPA enforcement is stronger than it's ever been - and getting stronger," Assistant Attorney General...
 

U.S. Enforcement of FCPA Draws Scrutiny

November 02, 2010

U.S. anti-bribery enforcement efforts have come under heightened scrutiny, just as two new laws are expected to launch those efforts into overdrive.The Foreign Corrupt Practices Act, which makes it a crime for U.S. companies and their employees to pay bribes to foreign officials to obtain business abroad, ought to be...
 

HSR Report: More Mergers Got Second Look in 2009

October 08, 2010

The overall number of merger deals may have been down last year, but proportionately more of them got a second look by federal enforcement agencies, the latest data from the Federal Trade Commission and the Antitrust Division of the Department of Justice shows.The FTC and DoJ have published their annual...
 

Post-Skilling, Movement Afoot on Honest Services Fraud

October 04, 2010

Three months after the Supreme Court significantly narrowed the scope of the honest services fraud statute, a tool relied upon by federal prosecutors to combat all manner of corruption and self-dealing, movement is afoot to expand it again.On Sept. 28, Senate Judiciary Committee Chairman Patrick Leahy (D-Vt.) introduced the Honest...
 

False Claims Act Settlements Serve as Reminder on Pricing

September 09, 2010

Recent settlements of allegations brought under the False Claims Act of defective pricing serve as a reminder to companies doing business with the government to tighten up their procedures around pricing.Cisco Systems and Westcon Group North America agreed to pay $48 million to settle claims they made misrepresentations to the...
 

DoJ Guidance: When a Consultant Isn't a Foreign Official

September 07, 2010

For those who can't get enough, some more Foreign Corrupt Practices Act guidance, courtesy of the Department of Justice.The latest DoJ FCPA Opinion Procedure Release—the third so far this year—relates to the hiring of a consultant who's an agent of a foreign government by a U.S. limited partnership pursuing an initiative with...
 

Barclays Forfeits $298 Million for Criminal Violations

August 20, 2010

Barclays Bank PLC, a United Kingdom corporation headquartered in London, has agreed to forfeit $298 million to the United States and to the New York County District Attorney’s Office in connection with violations of the International Emergency Economic Powers Act (IEEPA) and the Trading with the Enemy Act (TWEA), both...
 

FCPA Leniency Program Built on Antitrust Model?

August 16, 2010

More summer reading for those with an interest in anti-corruption enforcement: The latest thinking on how federal prosecutors can encourage cooperation by rewarding companies for self-reporting transgressions of U.S. anti-bribery laws, courtesy of Baker & McKenzie partners Robert Tarun and Peter Tomczak.In their proposal for leniency for self-reporting and cooperation by companies that...
 

FCPA Research Stirs Debate on Voluntary Disclosure

August 06, 2010

An academic paper is stirring up fresh debate about whether or not companies get any tangible benefit for confessing their Foreign Corrupt Practices Act violations to federal prosecutors.As part of their crackdown on corruption and bribery, Department of Justice officials frequently preach the benefits of voluntary disclosure of FCPA violations....
 

DoJ Opinion on Charitable Contributions, FCPA

July 26, 2010

Welcome guidance for companies that struggle with the Foreign Corrupt Practices Act implications of requests for charitable contributions when doing business overseas: The Department of Justice has published an FCPA opinion procedure release that shows that, with the proper due diligence and controls, such donations can be made without running...
 

Flurry of False Claims Activity Expected to Continue

July 13, 2010

Bad news for those who receive any federal funds, directly or indirectly: It's been a busy first-half in the False Claims Act arena, and it's expected to stay that way, thanks to a combination of changes in the law, massive government spending, increased fraud enforcement resources, state legislative and enforcement...
 

Former Deputy AG Seeks DoJ Enforcement Policy Change

June 30, 2010

Top Justice Department officials have long said companies reap "meaningful" benefits from voluntary disclosure. If federal prosecutors really want to convince companies and encourage self-reporting, a change in enforcement policy is needed, says one former U.S. Deputy Attorney General.Whether companies reap real benefit from self-reporting violations, particularly in the area...
 

Grindler Memo Adds 10th Principle on Monitors

June 03, 2010

Federal prosecutors ought to be clearer about what help they can provide to companies having issues with corporate monitors assigned to them as part of settlements with the Department of Justice.That's the gist of new internal DoJ guidance, detailed in a May 25 Memo written by Acting Deputy Attorney General...
 

Warning, Tips From Justice Department's Grindler

May 26, 2010

Corporate compliance, legal and risk professionals got a warning from a top Justice Department official, along with some advice on how to keep the companies they work for out of trouble.Acting deputy attorney general Gary Grindler made it clear that the agency is taking a no holds barred approach to...
 

Horizontal Merger Guidelines Comment Period Extended

May 06, 2010

Those planning to offer their two cents on the proposed changes to the Horizontal Merger Guidelines got more time to do so.In response to requests by some organizations, the Federal Trade Commission has extended the deadline for public comment on the proposed revisions to the joint FTC/Department of Justice Guidelines through June 4. The original 30-day...
 

Justice Department Publishes FCPA Opinion Release

April 27, 2010

A somewhat rare citing that should be of interest to those following Foreign Corrupt Practices Act enforcement: The Department of Justice has published an FCPA advisory opinion.The FCPA opinion procedures allow issuers and domestic concerns to get the Attorney General's opinion on whether certain conduct is in line with the...
 

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Deloitte is conducting their annual Look Before You Leap: Managing Risks in Global Investments survey to better understand the approaches companies are taking to address compliance and integrity-related risks in emerging markets. 

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