In today’s global economy, regulators and prosecutors around the world have stepped up scrutiny of corporate bribery. In the United States, the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) are bringing a record-breaking number of civil and criminal cases against U.S. companies, their foreign subsidiaries, and their officers, directors, and employees for violations of the Foreign Corrupt Practices Act (FCPA). With more than 20 former prosecutors and SEC attorneys, Dickstein Shapiro is at the vanguard of assisting companies in response to government investigations, conducting internal inquiries when questions arise, designing effective anti-corruption compliance and training programs, and handling parallel civil litigation, including shareholder derivative litigation. Additionally, companies facing an FCPA investigation may have insurance coverage available to help them pay for the costs associated with the investigation and our insurance coverage attorneys have experience assisting clients navigating these types of claims.
The FCPA, which was enacted in 1977 in the wake of Watergate-era revelations about corporate slush funds used to make illegal domestic political contributions and pay bribes to foreign government officials, is both an antibribery and a corporate compliance statute. The law prohibits U.S. companies, their employees, and their overseas subsidiaries from making corrupt payments, either directly or through an intermediary such as a sales agent, to foreign officials to obtain or retain business. (Foreign officials include employees of state-owned businesses.) It also requires companies whose securities are listed in the United States to meet accounting provisions requiring that they make and keep books and records that accurately reflect the transactions of the corporation and devise and maintain an adequate system of internal accounting.
Both the antibribery and record-keeping requirements carry heavy criminal and civil penalties. While individuals and entities face fines and civil penalties of up to $50,000 per violation, far greater financial sanctions may be imposed. Criminal penalties could reach up to $2 million per violation or double the gross pecuniary gain (gross profits) from the violation. Often, both the DOJ and SEC bring separate cases, which can result in multiple fines. Also, more and more foreign jurisdictions are bringing cases that parallel U.S. enforcement actions. Agreed-upon dispositions often result in an acknowledgment of wrongdoing by the company and the appointment of a monitor to review and oversee current and future business practices to assure future compliance with the FCPA.
Dickstein Shapiro has extensive experience in counseling companies and their executives in the face of FCPA issues. These matters include:
Through successful alliances with a network of foreign law firms, Dickstein Shapiro has developed a cost-effective way to assist companies with multinational needs, and these alliances have provided significant strategic value in FCPA matters. Such alliances have been formed throughout North America, as well as in Asia, Australia, Europe, Latin America, and the Middle East.