The Anti-Corruption Report

The definitive source of actionable intelligence covering anti-corruption laws around the globe

Articles By Topic

By Topic: RICO

  • From Vol. 4 No.12 (Jun. 10, 2015)

    Anti-Corruption Compliance Lessons from the FIFA Case

    The FIFA corruption scandal, which has already resulted in the indictment of 14 individuals, is drawing worldwide attention to anti-bribery enforcement.  The indictments describe a cacophony of bribe payments and a series of pay-to-play exercises designed to line the pockets of FIFA officials.  Although the FIFA case does not include FCPA charges, the expansive scandal and the enforcement action present many lessons applicable to global anti-corruption compliance.  In a guest article, Robert Appleton, a partner at Day Pitney, details the FIFA charges and discusses the compliance lessons that can be drawn from soccer’s biggest scandal.

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  • From Vol. 4 No.4 (Feb. 18, 2015)

    Private Equity FCPA Enforcement: High Risk or Hype?

    Extraction, engineering, pharmaceuticals and medical device manufacturers — FCPA prosecutors have already swept through these industries. Are private equity firms next?  In a guest article, Laurence A. Urgenson, Joseph De Simone, Audrey L. Harris, Matthew A. Rossi, Matthew Alexander and Melanie M. Burke, attorneys at Mayer Brown LLP, assert that, using Dodd-Frank and the SEC’s new presence exams, the government may very well turn its attention towards the private equity industry.  They detail the enforcement landscape, the bribery risks for private equity firms (among other things: hiring practices, sovereign wealth funds, acquisitions and joint ventures) and best practices to mitigate those risks.  See also “Buyer Beware: Understanding and Mitigating Parent Company FCPA Liability in the Context of Private Equity Acquisitions,” The FCPA Report, Vol. 2, No. 15 (Jul. 24, 2013).

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  • From Vol. 3 No.25 (Dec. 17, 2014)

    HP’s FCPA Settlement Spurs RICO Suit by Bribe Recipient Pemex

    The “global labyrinth of bribery” laid out in HP’s $108 million FCPA settlement in April triggered civil liability, Petróleos Mexicanos and an affiliate (Pemex) claim in their freshly-filed California federal case.  Pemex, a target of HP’s bribes, alleges that HP’s bribery (among other things) predicated violations of the Racketeer Influenced and Corrupt Organizations Act (RICO).  The complaint also contains unfair competition, fraudulent concealment and tortious interference with contract claims.  Pemex seeks to evade the weaknesses of prior RICO cases (including its own dismissed case against Siemens) by using past failures as a template for future success against HP.  See “Three Regions, Four Settlement Tools and $108 Million: HP Entities Resolve Criminal and Civil FCPA Charges,” The FCPA Report, Vol. 3, No. 8 (Apr. 16, 2014).

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  • From Vol. 2 No.17 (Aug. 21, 2013)

    Former Ambassador Files Civil Suit Alleging That FCPA Violations Can Trigger RICO Liability

    While there is no private right of action under the FCPA, a private citizen may sue under the Racketeer Influenced and Corrupt Organizations Act (RICO) for damages caused by an enterprise that engages in a pattern of “racketeering activities,” the broad definition of which may include violations of the FCPA.  These principles – the broad sweep of RICO and the potential for FCPA violations to trigger RICO liability – are at issue in a civil suit recently commenced by the Honorable Otto J. Reich, a former Ambassador to Venezuela, against three Venezuelan expatriates.  Reich alleges that the expatriates sought to damage his business and reputation after Reich sought to assist a Venezuelan bank.  The bank was a vocal critic of the Hugo Chavez regime and claimed that those expatriates had bribed Venezuelan officials in order to secure lucrative contracts to build power plants in Venezuela.  This article summarize Reich’s complaint.  See also “How to Anticipate and Manage Collateral Litigation after an FCPA Investigation Becomes Public,” above, in this issue of The FCPA Report; and “Non-FCPA Liability for Alleged FCPA Violations,” The FCPA Report, Vol. 1, No. 1 (Jun. 6, 2012).

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