Earlier this month, the U.S. Department of Justice filed a civil forfeiture action seeking to recover certain Louisiana real estate allegedly purchased with funds traceable to a $2 million bribe paid to a former Honduran government official in the Central American country.  The DOJ’s action in United States of America v. Real Property Located at 1404 North Highway 190, No. 2:15-cv-00074 (E.D. La. Jan. 13, 2015), reiterates its commitment to seizing proceeds of foreign official corruption as part of its Kleptocracy Initiative, and underscores the U.S. Government’s potentially expansive jurisdiction over foreign entities based on bribes with little connection to the United States.
Continue Reading Justice Department’s Kleptocracy Forfeiture Action Against Real Estate Allegedly Linked to Honduran Bribery Scheme Underscores U.S. Government’s Expansive Jurisdiction

Anti-corruption due diligence can be vexing even in the best of conditions; it is often made more complicated by time and business pressures that arise in the context of a merger or acquisition or an urgent sales opportunity.  Anti-corruption compliance is always fact-intensive, and due diligence is no exception, requiring many judgment calls about what issues to prioritize and how to deploy limited resources.  This article aims to provide a basic outline of seven key steps to consider in anti-corruption due diligence.
Continue Reading Beyond the Checklist: Seven Keys to Effective Trade Due Diligence

Imagine yourself the CEO of a successful multinational company. In the past few years, you have overseen ACME’s expansion into Latin America – a market whose demographic profile holds the promise of mouthwatering profits for your company, particularly with the upcoming holiday season. As they say, la vida es buena!
Continue Reading Doing Business In Latin America: Does Your Local Supplier Have Best Practices In Place So That Your Company Can Avoid Liability Under The FCPA?

By Thad McBride and Cheryl Palmeri

A New York federal district court judge has dismissed a Foreign Corrupt Practices Act (“FCPA”) claim against a former executive of Siemens, S.A. Argentina and Siemens Transportation Systems for lack of personal jurisdiction. The U.S. Securities and Exchange Commission (“SEC”) brought the civil FCPA enforcement action against Herbert Steffen for his role in an alleged scheme by which Siemens paid bribes to top government officials in Argentina to secure a project to create national identity cards.Continue Reading Line in the Sand: Siemens Argentina Case Limits Personal Jurisdiction Under the FCPA

By Alison N. Kleaver and Joseph Barton

One of the goals of the Foreign Corrupt Practices Act (“FCPA”) is to prevent US companies and individuals from paying bribes to foreign officials in exchange for business. To this end, the FCPA prohibits any domestic individual or business entity from making payments to a “foreign official” for the purpose of obtaining or retaining business. 15 U.S.C. § 78dd-2(a)(1). However, who, precisely, qualifies as a “foreign official” is the subject of much uncertainty. In particular, whether employees of a state-owned company qualify as foreign officials for purposes of FCPA is an area of great concern—and potential liability—particularly for US companies doing business in Latin America where governments often have at least some level of involvement in various business sectors from education to utilities to health care.Continue Reading Meaning Of FCPA’s “Foreign Official” Causes Uncertainty For Companies Doing Business Abroad

By Curt Dombek and Karin Johnson

With the award to Rio de Janeiro of two of the highest profile sports events in the world—the 2014 World Cup and the 2016 Summer Olympics—many U.S. and multinational corporations will be looking for investment opportunities in Brazil. If the 2008 Olympics in China are to be any kind of guide, foreign investment in Brazil will dramatically increase over the next several years and Brazil will become an increasingly attractive market. Companies looking to do business or invest in Brazil, however, should also be aware of the risks they face under the Foreign Corrupt Practices Act (“FCPA”) and should ensure that they have a strong compliance program in place.
 Continue Reading Increased Opportunities for Foreign Investment in Brazil Also Bring Increased Risk for FCPA Violations

By Rebecca Roberts

According to Forbes, the government has initiated more proceedings under the Foreign Corrupt Practices Act in the last five years than it did in the previous twenty. Given the huge expense and political and economic implications of an enforcement action, many companies choose to settle rather than litigate. As a result, there is not much case law on the constitutional implications of the FCPA’s long reach, which may, in some cases, exceed due process requirements.
 Continue Reading Reach of Foreign Corrupt Practices Act Exceeds Grasp: Due Process Limits