Mar. 20, 2019

The Strategy That Helped a Former Embraer Sales Manager Avoid Jail Time

How did Colin Steven, a former Embraer regional sales manager who pled guilty to FCPA charges for his role in Embraer’s bribery scheme escape a prison sentence? Rather than require jail time or probation, SDNY Judge Alison Nathan ordered Steven to forfeit the proceeds he received as part of the deal and pay a $25,000 fine. The Anti-Corruption Report recently spoke with Steven’s defense team at Arnold & Porter about his cooperation with the government and how they convinced the prosecutors and judge that jail time was not appropriate in this matter. See “An Enforcement Trend? The DOJ Pursues Individuals in Diverse Industries” (Feb. 21, 2018).

Doing Business in Argentina After the Notebooks Scandal

The most recent corruption mega-scandal is built on eight school-style spiral notebooks belonging to a federal government driver in Buenos Aires who filled them with the details of 12 years’ worth of payments he delivered to government officials in Argentina in connection with public works contracts. In a guest article, Barrick Gold’s Jonathan Drimmer and Argentinian attorney Guillermo Jorge, a partner at Bruchou, Fernandez Madero & Lombardi, discuss the most recent developments in the Notebooks scandal and how companies should respond. See “Will the Notebooks Scandal Be Argentina’s Operation Car Wash?” (Nov. 14, 2018).

The Developing Anti-Corruption Battle Between the United States and China

As the United States-China trade war rages on, anti-corruption enforcement appears to have become a singular battleground for the two global powers. The United States Department of Justice announced in late 2018 that it would specifically target Chinese companies for aggressive enforcement of the FCPA. China, for its part, has taken preemptive measures to curtail foreign authorities’ ability to conduct investigations on Chinese soil, with a clear intent to block U.S. efforts in particular. In a guest article, Alex Oh, a partner at Paul, Weiss, and her colleagues, Justin Lerer, of counsel, and Meredith Arfa, an associate, examine the impact this conflict may have on anti-corruption enforcement. See our two-part series on China’s State Secrets Law: “A Primer for Anti-Corruption Practitioners” (Jun. 29, 2016); and “Six Things to Consider When Engaging in Internal Investigations in China” (Jul. 13, 2016).

DOJ’s Rosenstein and Benczkowski Discuss Individual Accountability, Transparency, Proportionality and the Corporate Enforcement Policy

In recent speeches, outgoing Deputy Attorney General Rod Rosenstein and Brian Benczkowski, the Assistant Attorney General in charge of the DOJ’s Criminal Division, stressed the need for cooperation between the DOJ and industry in fighting corruption, reiterated the DOJ’s commitment to individual accountability and provided further insights on the DOJ’s goals of ensuring transparency and proportionality, as evidenced by its FCPA Corporate Enforcement Policy. Rosenstein delivered the keynote address on FCPA enforcement developments at a recent forum presented by TRACE International, and Benczkowski delivered his remarks at the recent 33rd Annual American Bar Association National Institute on White Collar Crime Conference. See “Quick Look at Recent DOJ Policy Changes” (Feb. 20, 2019).

The Supercharging of Australia’s Bribery Enforcement

In response to criticism from the OECD Working Group on Bribery in 2012, Australia’s legal framework and enforcement tools for combating bribery and related corporate criminal activity have been subject to numerous enhancements. In a guest article, Jason Gray, a partner in Allen & Overy’s Sydney office and associates Edward Einfeld and Caroline Marshall discuss the country’s latest efforts including the conclusion of its largest successful corporate prosecution for foreign bribery, the most recently proposed legislative changes, the new tools being considered to increase the effectiveness of investigative bodies and prosecutors in pursuing corporate criminal activity and the significant increases in funding for investigative and enforcement bodies

Minimizing FCPA Risks in Foreign Direct Investment Transactions

While companies generally associate FCPA risks with their overseas business activities, there is considerable risk associated with inbound investments, Edward Fishman, a partner at Nossaman, said at a recent Strafford presentation on FCPA concerns in soliciting direct investments in the U.S. from foreign entities. This article summarizes the analysis by Fishman and co-presenter Brent Carlson, a director at AlixPartners, of those risks and suggestions for how to mitigate them. See “Putting a Bow on the Legg Mason Settlement With a $34 Million Payment to the SEC” (Sep. 19, 2018); and “SocGen Reaches Historic Deal With France and U.S., Legg Mason Tags Along” (Jun. 27, 2018).

ACR Webinar: How HPE Is Using Its New T&E Tool to Generate Compliance Metrics

Measuring the effectiveness of a compliance program can be tricky, but some companies are finding ways to use their existing internal controls to generate useful data. Last summer, Hewlett Packard Enterprises launched a new travel-and-entertainment-approval tool. An important feature of the new system is that compliance personnel can generate a wide variety of reports about T&E requests at will, allowing them to measure and monitor their program in real time. Please join the Anti-Corruption Report on Wednesday, March 27, 2019, from 1:00 p.m. to 2:00 p.m. EDT for a complimentary webinar in which Senior Editor Megan Zwiebel will interview Becky Rohr, vice-president of anti-corruption and global trade at Hewlett Packard Enterprises, about how they are using their T&E tool to measure and improve compliance. To register, please click here.

Former SEC Enforcer Joins MoFo in San Francisco

Jina Choi most recently served as head of the SEC’s San Francisco Regional Office. For more from Morrison & Foerster, see our webinar on DOJ expectations for data retention here.

Deloitte Ireland Adds Senior Forensic Accountant

Deirdre Carwood joins the firm as a partner in the financial advisory department.