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FCPA Lessons in Deflate-gate: Consistency of Discipline

Tom Fox | September 9, 2015

For those in the FCPA world I would like to focus on one aspect of the court’s ruling: consistency in discipline. In Brady’s appeal, the court was highly critical of the fact that the NFL policy for discipline for first offenses involving equipment violations would result in fines rather than suspensions. Further in all previous discipline involving “equipment violations results in a fine of $5,512.” The NFL suspended Brady for four games with an attendant loss of salary at approximately $1 million.

Under any FCPA compliance program, discipline must not only be administered fairly; it must be administered uniformly across the company for the violation of any compliance policy. Simply put, if you are going to fire employees in South America for lying on their expense reports, you have to fire them in North America for the same offense. It cannot matter that the North American employee is a friend of yours, or worse yet a “high producer.” Failure to administer discipline...

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