With the first half of 2019 in the rearview mirror, it is a good opportunity to review the overall trends in Foreign Corrupt Practices Act (“FCPA”) enforcement actions brought by the Department of Justice (“DOJ”) and Securities and Exchange Commission (“SEC”) so businesses can better anticipate what to expect in the future. The following summarizes the key statistics and trends seen so far this year:
- The government filed 20 enforcement actions in the first half of 2019, which represents about a 25% increase in the average number of actions filed in the first half of a year.
- Mid-year enforcement sanctions were significantly above average at more than $1.4 billion. The ten-year average is closer to $6 million at this point in the year. Much of this increase is due to three first quarter resolutions with Cognizant Technology Solutions Corporation, Mobile TeleSystems Public Joint Stock Company, and Fresenius Medical Care AG & Co. KGaA, totaling $1.1 billion paid by the settling companies.
- Only two entity groups disclosed new investigations this year—Uber Technologies, Inc. and Baker Hughes, a GE Company, LLC—which is well below the ten-year average of 13 disclosures. Notably, the 2018 yearly totals were also substantially below average.
- During the second quarter, the DOJ and SEC collectively resolved investigations into seven different entity groups, three of which were closed without taking further action.
The Government is on a Record-Breaking Sanction Total Pace
In short, these statistics reveal that the government is on track to reach record-breaking sanction totals for FCPA-related enforcement actions this year. Not only are enforcement actions on the rise, they are also resulting in unusually large penalties. By comparison, the overall number of investigations seems to be sharply declining, which may lead to fewer enforcement actions over the coming years as those investigations play out. We will continue to monitor these trends.
Heather Hatfield represents clients in corporate investigations, white-collar crime investigations and defense involving the Foreign Corrupt Practices Act (FCPA), complex contract disputes, oil and gas litigation ...
Blake Runions assists clients with broad range of business disputes and investigatory matters, including partnership disputes, internal investigations, and commercial litigation.
Prior to joining the Firm, Blake worked in the ...
Jamie Godsey represents public and private corporations, partnerships, and small companies on a broad range of complex business and commercial litigation. Her experience includes a wide variety of matters such as contractual ...
- Transparency International’s 2020 Corruption Perceptions Index Indicates Corruption is Affecting COVID-19 Response
- Expected Enforcement Trends under the Biden Administration
- FCPA: 2020 Year-In-Review
- Goldman Sachs Reaches Record $2.9 Billion Settlement of Malaysia FCPA Violations
- Recent Advisory Opinion Provides Important Guidance to Mitigate Sanctions Risk
- DOJ Releases Rare FCPA Opinion Procedure
- Essentra Settlement Demonstrates Government Commitment to Compliance Framework
- DOJ Updates Corporate Compliance Evaluation Guidance
- Political Retribution in Bridgegate Cannot Sustain Federal Fraud Convictions in Kelly v. United States
- Key Considerations in the Timing of FCPA Violation Disclosures
- March 2021
- February 2021
- January 2021
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019