November 5, 2009
Elizabeth Spahn, a professor at the New England School of Law, stopped by this week. She left a comment about Andy Spalding’s latest post. In it, she cited her recent article that asks the questions: Why is there so little legal scholarship regarding international bribery? Why aren’t law professors training their students on the issue? Why, she asks, don’t legal educators want to talk about international anti-corruption initiatives? . . .
Read the entire post at The FCPA Blog www.fcpablog.com
November 4, 2009
With so much to lose by going to trial, how many organizations and people will plead guilty to white collar crimes they didn’t commit? Ellen Podgor of Stetson University College of Law and the White Collar Crime Prof Blog asks that question in her latest essay, “White Collar Innocence: Irrelevant in the High Stakes Risk Game.” She looks at three defendants who claimed their innocence at trial but were convicted — Arthur Andersen LLP, Jamie Olis, and Jeffrey Skilling. And three who pleaded guilty and avoided trials — KPMG, Gene Foster, and Andrew Fastow. The second group, she says, enjoyed reduced sentences and finite results. . . .
Read the entire post on The FCPA Blog www.fcpablog.com
November 3, 2009
On the subject of Frederic Bourke — the wealthy entrepreneur convicted in July of conspiring to violate the Foreign Corrupt Practices Act and lying to FBI agents — we now know what issues his lawyers plan to raise on appeal. Most relate to what Bourke knew and intended — his mens rea. In a recent pleading arguing for his release pending the appeal, his lawyers said: . . .
Read the entire post at The FCPA Blog www.fcpablog.com
November 2, 2009
The first time we heard from Andy Spalding, a lawyer on a year-long Fulbright Research Grant in Mumbai, India, he floored us with the idea that the Foreign Corrupt Practices Act causes corruption and hurts poor people. We just heard from him again, this time about the way the Justice Department explains the purpose of the FCPA and approaches enforcement. We’ll let Andy speak for himself (because he does it so well). Here’s what he said: . . .
October 30, 2009
The Foreign Corrupt Practices Act researcher Cody Worthington responded to our post Their Days Are Numbered. To our list of thirteen people waiting to be sentenced for violating or conspiring to violate the FCPA, he suggested we add three more. Here they are . . .
Read the entire post on The FCPA Blog www.fcpablog.com
October 29, 2009
In Dakar, the capital of the West African country of Senegal, the IMF’s regional representative was given a farewell dinner two months ago. After three years in the post, Alex Segura was heading back to his native Spain. As the evening ended, President Abdoulaye Wade handed Segura a going-away gift. It was cash — €100,000 and $50,000. Segura boarded his flight and left the country, cash in hand. In later explaining Segura’s actions, the IMF said he was worried about missing his plane and concerned about finding a place to stash the cash safely in Senegal. . . .
Read the entire post on The FCPA Blog www.fcpablog.com
October 28, 2009
We count at least thirteen people waiting to be sentenced for violating or conspiring to violate the Foreign Corrupt Practices Act. Both offenses carry a prison term of up to five years. And for substantive offenses the fine can be up to $250,000 or twice the gross gain produced by the bribes. Those listed either pleaded guilty or were convicted at trial. Their names (linked to posts describing their guilty pleas or convictions) are followed by current sentencing dates. The dates often slip, so we’ll try to stay on top of any changes. . . .
Read the entire post on The FCPA Blog www.fcpablog
October 27, 2009
Hermitage Capital Management, once the largest foreign investor in the Russian stock market, has accused police officials, bankers, judges and lawyers of working with gangsters to steal $230 million from the company and using its documents to obtain another $230 million from the Russian treasury through fraudulent tax refunds. Hermitage’s latest complaint, according to the Washington Post, accused “several bureaucrats in two Moscow tax agencies of involvement in the crimes and lists more than 30 suspicious tax refunds issued by the agencies between 2006 and 2008, as well as the account numbers of the recipients.” . . .
Read the entire post on The FCPA Blog www.fcpablog.com
October 26, 2009
Halliburton disclosed Friday in its latest SEC filing that the U.K.’s Serious Fraud Office (SFO) may bring civil claims or criminal charges against it under various British laws. In February this year, Halliburton and its former subsidiary, Kellogg Brown & Root LLC, admitted paying Nigerian officials at least $182 million in bribes for contracts awarded between 1995 and 2004 to build liquefied natural gas facilities on Bonny Island, Nigeria. The companies agreed with the U.S. Justice Department to pay a $402 million criminal fine, with Halliburton paying $382 million of that amount. Halliburton also agreed with the Securities and Exchange Commission to be jointly liable with KBR to pay $177 million in disgorgement. . . .
Read the entire post on The FCPA Blog www.fcpablog.com
October 23, 2009
In Malaysia this week, four forestry department officials, including the department director, an officer and two rangers, were arrested for taking a $30,000 bribe. In exchange, they allegedly awarded illegal logging concessions. Malaysia has prized hardwoods growing in protected areas in and around its rain forests. The arrests came after an investigation by the Malaysian Anti-Corruption Commission. According to the Malaysia Star, more than $100,000 in cash was seized from the house of the director, who “is said to be a millionaire.” The anti-corruption team is now investigating the sources of his wealth. He and the other suspects are being held “to assist in investigations.” So far this year, Malaysian authorities have discovered 21 cases of illegal logging with 23 arrests. . . .
Read the entire post on The FCPA Blog www.fcpablog.com
