Two former Chadian diplomats posted to the U.S. were charged with bribery and money laundering after allegedly accepting a $2 million bribe from a Canadian energy company in exchange for obtaining oil rights in the African nation. Mahamoud Bechir and Youssouf Takane took the bribe and conspired to launder it while serving as diplomats in Chad's Embassy in Washington, 2009 to 2014, the Department of Justice said in a May 24 news release. The diplomats allegedly pledged to leverage their influence in Chad to secure the energy company the oil rights. The president of the Canadian company, Naeem Tyab, pleaded guilty to violating the Foreign Corrupt Practices Act.
Export Compliance Daily is providing readers with the top stories for May 10-14 in case you missed them. You can find any article by searching on the title or by clicking on the hyperlinked reference number.
Seth DuCharme, previously the acting U.S. attorney for the Eastern District of New York and principal associate deputy attorney general of the U.S., joined Bracewell as a partner in its government enforcement and investigations practice, the firm said in a May 10 news release. “DuCharme will focus his practice at Bracewell on advising companies and individuals on matters related to cybersecurity and breach response, Foreign Corrupt Practices Act (FCPA) diligence and litigation, export controls, sanctions compliance and anti-money laundering,” the firm said.
Two companies weren’t penalized after disclosing potential export control and Foreign Corrupt Practices Act violations to U.S. agencies, according to recent Securities and Exchange Commission filings. A10 Networks Inc., a software and hardware manufacturing company, said in its April 30 filing it received a warning letter from the Bureau of Industry and Security “in lieu of fines and penalties” after voluntarily disclosing potential illegal exports of encryption products (see 2011040041). Pactiv Evergreen, a North American food and beverage packaging company, said in its May 6 filing it disclosed potential FCPA violations to the Justice Department (see 2103040065), but the agency “decided to close its file on this matter without any action against the Company.” Pactiv said it’s awaiting a potential penalty decision from the SEC and can’t predict whether it will be fined.
The U.S. announced just one enforcement action under the Foreign Corrupt Practices Act through the first four months of this year (see 2101120021), the slowest start in FCPA enforcement in at least a decade, a May 3 FCPA Blog post said. The U.S. averaged about four or five corporate FCPA enforcement actions through the first four months of 2012 through 2020, the blog said. Some “high-level personnel changes” due to the White House transition may be contributing to the slow-down, it said. The FCPA units at the Justice Department and Securities and Exchange Commission “are likely waiting for the dust to settle,” the blog said. “New leaders bring new agendas and priorities, and pending actions need fresh reviews.” DOJ didn’t comment.
Toyota may have violated U.S. anti-bribery laws, the carmaker said in a March 18 Securities and Exchange Commission filing. The company said it disclosed the potential violations, which involved its subsidiary in Thailand, to the SEC and the Justice Department in April 2020. Toyota is cooperating with both agencies -- which enforce the Foreign Corrupt Practices Act -- and said it may be subject to penalties but “cannot predict the scope, duration or outcome of the matter at this time.” A company spokesperson declined to comment.
Export Compliance Daily is providing readers with the top stories for March 8-12 in case you missed them. You can find any article by searching on the title or by clicking on the hyperlinked reference number.
The Department of Justice recently expanded its foreign bribery unit to a record 39 prosecutors, paving the way for aggressive Foreign Corrupt Practices Act enforcement under the Biden administration, the Wall Street Journal reported March 8. The agency is placing an emphasis on hiring lawyers with FCPA compliance backgrounds, the report said, which could translate to increased agency efforts to promote industry compliance. A Justice Department spokesperson pointed to the agency's 2020 year in review.
Five companies said they may have violated U.S. sanctions, export controls or anti-corruption laws, according to their February Securities and Exchange Commission filings. The potential violations involved illegal exports, providing services to sanctioned territories and gift cards sent to the Chinese government.
A new South Korea anti-corruption regulator to target high-ranking government officials could affect private companies doing business with the country, an FCPA Blog post said Jan. 20. The Corruption Investigation Office for High-Ranking Officials will act as an independent agency to investigate corruption cases among both acting and retired public officials, the post said. The body can also investigate crimes related to corruption, including bribes paid by private companies or companies that “acted as accomplices to the crimes committed by high-ranking officials.” The agency is expected to start work in the “next few months,” the post said. Companies doing business in South Korea “should carefully review their risk profiles with respect to interactions with Korea’s senior officials.”