Learn some of the key lessons from FCPA enforcement actions in 2013. Understand the importance of documenting investigations and get a peek at how i-Sight Case Management Software can be used to help you manage the investigation process.
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Lessons Learned from FCPA Enforcement in 2013 - Webinar Slides
1. 2013: The FCPA Year in
Review
Thomas Fox, Attorney at Law
2. Thomas Fox
Tom Fox has practiced law in Houston for 25 years. He now
assists companies with FCPA compliance, risk management and
international transactions. He was most recently the General
Counsel at Drilling Controls, Inc., a worldwide oilfield
manufacturing and service company. Before that he was
Division Counsel with Halliburton Energy Services, Inc. where he
supported Halliburton’s software division and its downhole
division, which included the logging, directional drilling and drill
bit business units.
Today, Tom writes and speaks nationally and internationally on
a wide variety of topics, ranging from FCPA compliance,
indemnities and other forms of risk management for a
worldwide energy practice, tax issues faced by multi-national US
companies, insurance coverage issues and protection of trade
secrets.
3. Practices Under the FCPA and Bribery Act/GSK
in China: A Game Changer in Compliance
8. How can i-Sight help?
Intake
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i-Sight Web Form
Eternal Web Form
Email-to-Case
Case Management
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Notes
To-Do’s
Emails
Attachments
Interview Reports
Investigation Reports
Alerts / Workflow
Access / Roles
Reporting
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Writer
Dashboard
Distribution
9. II. Individual Enforcement Actions
Enforcement Trends-Individuals
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Mike Volkov- “It is clear that FCPA enforcement for 2013 will go
down as the year of criminal prosecutions of individuals.”
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Full use of all criminal law enforcement techniques
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Clear credit given for cooperation
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Use of other statutes and charges
10. Individuals-BizJet
1. Bernd Kowalewski – President and Chief Executive Officer (CEO);
2. Peter DuBois – Vice President of Sales and Marketing;
3. Neal Uhl – Vice President of Finance; and
4. Jald Jensen – Regional Sales Manager
11. Bribery Box Score
BizJet Executive or Employee
Named
Jald Jensen
Payment Made To
Jald Jensen
Peter DuBois, Neal Uhl and Jald
Jensen
Neal Uhl
Peter DuBois
Official 3
Official 2
Neal Uhl
Jald Jensen
Jald Jensen
Jald Jensen
Jald Jensen
Jald Jensen
Neal Uhl
Official 6
Official 2
Mexican Federal
Police Chief
Official 5
Official 4
Mexican Federal
Police
Official 4
Mexican Federal
Police
Official 5
Official 5
Amount of
Others Involved
Payment
Cell Phone and Peter DuBois and Neal Uhl
$10K
$2K
Peter DuBois
$20K
$30K
$10K
Jald Jensen
Neal Uhl and Jald Jensen
$18K
$50K
$176
Jald Jensen
$40K
$210K
$6K
$22K
Neal Uhl
Neal Uhl
Neal Uhl
12. Penalty Box Score
Individual
Fine or
Potential Incarceration Actual Incarceration
Disgorgement
Peter DuBois $159,950
108 to 120 months in jail 8 months home incarceration, 60 month’s
probation
Neal Uhl
60 months in jail
$10,000
60 month’s probation
13. Individuals-Alstom
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Frederic Pierucci , 45, Vice President of global sales for U.S.
subsidiary.
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David Rothschild, former vice president of sales U.S. subsidiary.
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William Pomponi, former US VP of Sales.
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Lawrence Hoskins, VP AsiaPac Region.
14. Frederic Cilins-BSRG
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BSRG representative charged with obstruction of justice.
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Alleged to have entered into 5 contracts to pay bribes to wife of
President of Guinea.
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Denied bail and awaiting a March 2014 trial.
15. Uriel Sharef-Siemens
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He met with payment intermediaries in the United States and
agreed to pay $27 million in bribes to Argentine officials.
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Sharef also enlisted subordinates to conceal the payments by
circumventing Siemens' internal accounting controls.”
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The final judgment, to which Sharef consented, enjoins him from
violating the anti-bribery and related internal controls provisions of
the FCPA and orders him to pay a $275,000 civil penalty, the second
highest penalty assessed against an individual in an FCPA case.”
16. Willbros-Paul Novak
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Novak pled guilty to one count of conspiracy to violate the FCPA
and one substantive count of violating the FCPA.
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Novak admitted that from approximately late-2003 to March 2005,
he conspired with others to make a series of corrupt payments”.
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Novak was sentenced to serve 15 months in a federal prison.
17. Direct Access Partners
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Tomas Alberto Clarke Bethancourt – Direct Access Partners broker
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Jose Alejandro Hurtado - Direct Access Partners broker
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Ernesto Lujan - head of the Miami office of DAP-conspiracy to bribe an
officer at a state-owned Venezuela bank in exchange for bond trading
business. He was charged with substantive FCPA and Travel Act offenses
and conspiracy counts. He was also charged with two money launderingrelated counts.
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María de los Ángeles González de Hernandez , an official at a stateowned Venezuelan bank BANDES for receiving the bribes. She is charged
with then authorizing fraudulent trades, which generated more than $66
million in revenue on trades in Venezuelan sovereign or state-sponsored
bonds for DAP. The DOJ also charged her with Travel Act conspiracy and
substantive offenses, and two money laundering-related counts.
18. Alain Reido
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Continued Fallout from Maxwell Technologies Enforcement Action
from 2011
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General Manager of Maxwell Technologies SA
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Alleged that he handled bribe payments
19. III. New Best Practices-Monitor,
Monitor, Monitor
Morgan Stanley
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Only Publicly announced Declination naming the entity
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DOJ and SEC Press release both cited transaction monitoring as
one of the factors for granting the Declination
20. Eli Lilly-Poland
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Donations made to charity run by Director General of Silesian
Health Service
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Date of donations matched up dates contracts granted or approved
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Huge spike in sales to Silesia
21. Weatherford and Diebold
What are the minimum best practices?
What are evolving international and industry standards?
22. IV. Ongoing InvestigationsDocument Document Document
JP Morgan-Sons and Daughters Hiring Program
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Provided for Two-Tiered Track
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Original purpose of program
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Transparency
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Visibility
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‘Spreadsheet’ found tying contracts and other business
opportunities to hiring decisions
23. Evolution of Program
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Allowed sons and daughters of Chinese government officials to be
fast-tracked
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Fewer job interviews required
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Relaxed hiring standards
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Subpar academic records
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Lacking relevant experience
24. Hiring of Government officials
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Not illegal under the FCPA but Red Flags can be raised
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Opinion Releases approving such hiring:
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82-04
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84-01
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95-03
29. Thank-you for Participating in
Today’s Webinar
How you can reach Thomas Fox
Ph: 832-744-0264
www.tfoxlaw.com
tfox@tfoxlaw.com
Follow me at www.twitter.com/tfoxlaw.
Follow my blog at http://tfoxlaw.wordpress.com/
Contact us at i-Sight
j.gerard@i-sight.com