Posts Tagged With Corruption / Bribery

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Attorney General Jeff Sessions Delivers Remarks at the Ethics and Compliance Initiative Annual Conference

On April 24, 2017, Attorney General Jeff Sessions spoke at the Ethics and Compliance Initiative Annual Conference.  In his remarks, Sessions stated that he wanted to “make clear” that, under his leadership, “the Department of Justice remains committed to enforcing all the laws”  including “laws regarding corporate misconduct, fraud, foreign corruption and other types of white-collar crime.”  Sessions noted that he spent his “first weeks as Attorney General” making sure that the Department “strengthens its ... Continue Reading

Acting Principal Deputy Assistant Attorney General Trevor N. McFadden of the Justice Department’s Criminal Division Speaks at ACI’s 19th Annual Conference on Foreign Corrupt Practices Act

On April 20, 2017, Acting Principal Deputy Assistant Attorney General Trevor N. McFadden spoke at the American Conference Institute (“ACI”) about the Department of Justice’s continued focus on white collar crime.  Affirming the Department’s commitment, McFadden said, “While we are boosting our focus on violent crime prosecutions, the Criminal Division is fully engaged in combating crime in all its forms, and no matter what color collar its perpetrators wear.  McFadden highlighted the work of the ... Continue Reading

Acting Principal Deputy Assistant Attorney General Trevor N. McFadden Speaks at Anti-Corruption, Export Controls & Sanctions 10th Compliance Summit

On April 18, 2017, Acting Principal Deputy Assistant Attorney General Trevor N. McFadden addressed attendees at the Anti-Corruption, Export Controls & Sanctions Compliance Summit in Washington, D.C. about Corporate Social Responsibility.  Referencing his time working in private practice, McFadden expressed his view that “the vast majority of international business and business leaders want to get compliance right.”  He also said that the improvements in corporate compliance were “quite impressive” as compared to before the enactment ... Continue Reading

Philadelphia District Attorney Charged with Bribery and Extortion

On March 21, 2017, Philadelphia District Attorney Rufus Seth Williams was charged in a 23-count indictment with bribery, extortion and honest services wire fraud in connection with receiving bribes from two business owners and with defrauding a nursing home and family friends of money intended for a family member’s nursing home care.  According to the indictment, from July 2010 to July 2015, Williams solicited and received tens of thousands of dollars’ worth of bribes from ... Continue Reading

Former Chairman and CEO of Credit Union and Operator of Unlawful Bitcoin Exchange Convicted at Trial in Connection with Bribery and Fraud Scheme

On March 17, 2017, Trevon Gross, the former Chairman and CEO of HOPE FCU, a federal credit union in New Jersey with primarily low-income members, and Yuri Lebedev, a former employee of Coin.mx, an unlawful internet-based Bitcoin exchange, were found guilty after a four-week jury trial, in connection with a bribery scheme to gain control of HOPE FCU and a fraud scheme to evade detection of Coin.mx.  Between 2013 and July 2015, Lebedev and his ... Continue Reading

Acting Assistant Attorney General Kenneth A. Blanco Speaks at the American Bar Association National Institute on White Collar Crime

On March 10, 2017, Acting Assistant Attorney General Kenneth A. Blanco addressed the 31st annual American Bar Association White Collar Crime conference about the Criminal Division, and in particular its efforts with respect to white collar crime and corruption in the international arena.  Blanco noted the Department’s success in its anti-money laundering and counter-terrorist financing efforts, as well as its continued efforts in preventing the abuse of shell companies.  Blanco then described the customer due ... Continue Reading

Former Chairman of Board of Commissioners of the Port Authority of New York and New Jersey Sentenced to One Year of Home Confinement in Connection with Bribery Scheme

On March 6, 2017, David Samson, the former chairman of the Board of Commissioners of the Port Authority of New York and New Jersey, was sentenced to one year of home confinement for having used his official authority to pressure United Airlines Inc.’s parent company to institute a non-stop flight from Newark, New Jersey to South Carolina for his personal benefit.  Samson had also served as the New Jersey Attorney General from 2002 to 2003.  ... Continue Reading

Former Arkansas State Senator and Two Others Charged with Bribery and Fraud Scheme

On March 2, 2017, three individuals were charged with a fraud scheme involving bribes paid to two public officials in exchange for directing approximately $600,000 in government funds to two non-profit entities.  The individuals charged were Jonathan E. Woods, a former Arkansas state senator who served from 2013 to 2017, Oren Paris III, a college president, and Randell G. Shelton Jr., a consultant.  Each of the individuals was charged with nine counts of honest services ... Continue Reading

Former Registered Broker Pleads Guilty to Securities Fraud Conspiracy for Participating in a $131 Million Market Manipulation Scheme

On March 1, 2017, Christopher F. Castaldo, a former registered broker, pled guilty in the Eastern District of New York to conspiracy to commit securities fraud in connection with the fraudulent market manipulation of ForceField Energy Inc. (ForceField) stock, listed on the NASDAQ under the symbol “FNRG.”  According to court filings, between January 2009 and April 2015, Castaldo, together with co-conspirators, engaged in a scheme to defraud ForceField investors by (1) artificially controlling the price ... Continue Reading

Deputy Assistant Attorney General Trevor McFadden Delivers Remarks at Global Investigations Review Conference in Washington, DC

On February 16, 2017, Deputy Assistant Attorney General Trevor McFadden delivered remarks on FCPA enforcement at the Global Investigations Review Conference in Washington, DC.  McFadden’s remarks, delivered 40 years after the passage of the FCPA, described the history of FCPA enforcement and signaled continuity in DOJ’s approach under the new Administration.  McFadden described the past 15 years of FCPA enforcement as a continuous effort under the Bush and Obama Administrations, and signaled continuity with DOJ’s ... Continue Reading

Rolls-Royce plc Agrees to Pay $170 Million Criminal Penalty to Resolve Foreign Corrupt Practices Act Case

On January 17, 2017, Rolls-Royce plc agreed to pay the United States nearly $170 million as part of an $800 million global resolution with the United States, United Kingdom, and Brazil.  Rolls-Royce entered into a deferred prosecution agreement in connection with charges that the company conspired to violate the anti-bribery provisions of the FCPA.  According to admissions in the agreement, between 2000 and 2013, Rolls-Royce paid more than $35 million in bribes through third parties ... Continue Reading

Chilean Chemicals and Mining Company Agrees to Pay More Than $15 Million to Resolve FCPA Charges

On January 13, 2017, Sociedad Quimica y Minera de Chile (SQM) entered into a DPA and agreed to pay more than $15 million as a criminal penalty for failure to implement internal controls and falsifying its books and records under the FCPA.  The DPA provides that between 2008 and 2015, SQM made donations to foundations tied to Chilean politicians, including approximately $630,000 to foundations controlled by a Chilean official with influence over the Chilean government’s ... Continue Reading

Zimmer Biomet Holdings Inc. Agrees to Pay $17.4 Million to Resolve Foreign Corrupt Practices Act Charges

On January 12, 2017, Zimmer Biomet Holdings, Inc. entered into a three-year deferred prosecution agreement (“DPA”) in connection with charges that the company failed to implement a system of effective internal controls under the FCPA.  The DPA requires Zimmer Biomet to pay a $17.4 million criminal penalty and retain a compliance monitor for three years.  In addition, an indirect subsidiary of Zimmer Biomet, JERDS Luxembourg Holding S.àr.l., agreed to plead guilty to a one-count criminal ... Continue Reading

Two Businessmen Plead Guilty to Foreign Bribery Charges in Connection with Venezuela Bribery Schemes

On January 10, 2017, Juan Jose Hernandez-Comerma and Charles Quintard Beech III pled guilty for their roles in a foreign bribery scheme in connection with contracts from Petróleos de Venezuela S.A. (“PDVSA”), Venezuela’s state-owned and state-controlled energy company.  Hernandez-Comerma pled guilty to one count of conspiracy to violate the FCPA and one count of violating the FCPA.  Hernandez-Comerma conspired with others to pay bribes, including by providing recreational travel and entertainment to PDVSA officials in ... Continue Reading

General Cable Corporation Agrees to Pay $20 Million to Resolve Investigation into Foreign Corrupt Practices Act Violations

On December 29, 2016, General Cable Corporation (“General Cable”) entered into a non-prosecution agreement and agreed to pay a $20 million criminal penalty to resolve the government’s investigation into payments made to foreign government officials in Angola, Bangladesh, China, Indonesia and Thailand in violation of the Foreign Corrupt Practices Act.  General Cable is a Kentucky-based manufacturer and distributor of cable and wire.  According to General Cable’s admissions, beginning in 2002, some foreign subsidiaries used third-party ... Continue Reading

Teva Pharmaceuticals to Pay $519 Million in FCPA Resolution

On December 22, 2016, Teva Pharmaceutical Industries Ltd. entered into a deferred prosecution agreement and its wholly owned Russian subsidiary Teva LLC agreed to plead guilty to conspiracy to violate the FCPA for a scheme to bribe government officials in Russia, Ukraine, and Mexico.  Between 2006 and at least 2012, Teva made corrupt payments to a high-ranking Russian government official, who then used his official position to influence the Russian government to purchase Copaxone, a ... Continue Reading

Former New York State Common Retirement Fund Portfolio Manager Indicted in Bribery Scheme

On December 21, 2016, Navnoor Kang, the former Director of Fixed Income and Head of Portfolio Strategy at the New York State Common Retirement Fund (“NYSCRF”), was indicted in connection with a bribery scheme.  Deborah Kelley, a managing director of institutional fixed income sales at a New York-based broker-dealer, and Gregg Schonhorn, a vice president of fixed income sales at a New York-based broker-dealer, were also charged in connection with the scheme.  The NYSCRF, which ... Continue Reading

Odebrecht and Braskem Plead Guilty to Resolve Largest Foreign Bribery Case in History

On December 21, 2016, Brazilian construction conglomerate Odebrecht S.A. and its affiliate Braskem S.A. pled guilty to conspiracy to violate the FCPA for a scheme to bribe government officials, primarily in Brazil.  In the largest foreign bribery case in history, Odebrecht and Braskem agreed to pay at least $3.5 billion to authorities in the United States, Brazil, and Switzerland.  Odebrecht paid over $700 million in bribes to government officials and political parties in twelve countries, ... Continue Reading

Gabonese National Pleads Guilty to Foreign Bribery Scheme

On December 9, 2016, Samuel Mebiame, a Gabonese national and the son of the former Prime Minister of Gabon, pled guilty to conspiracy to make corrupt payments to government officials in violation of the FCPA.  Mebiame worked as a consultant to a mining company joint venture co-owned by Och-Ziff Capital Management Group LLC (“Och-Ziff”), a New York-based hedge fund.  Between 2007 and 2012, Mebiame conspired with others to pay bribes to government officials in Chad ... Continue Reading

Former Deputy Executive Director of Port Authority and Former Deputy Chief of Staff in N.J. Governor’s Office Guilty on All Counts

On November 4, 2016, William E. Baroni Jr., former deputy executive director of the Port Authority, and Bridget Anne Kelly, former deputy chief of staff to New Jersey Governor Chris Christie were each convicted on all charges by a jury in the District of New Jersey in connection with their roles in a scheme to misuse Port Authority resources to create traffic problems in Fort Lee, New Jersey.  Baroni and Kelly were each convicted of ... Continue Reading

Assistant Attorney General Leslie R. Caldwell Delivers Remarks at The George Washington University Law School Regarding Foreign Corrupt Practices Act Enforcement

On November 3, 2016, Assistant Attorney General Leslie R. Caldwell spoke at The George Washington University Law School on the DOJ’s Foreign Corrupt Practices Act enforcement efforts.  Caldwell began by stating that, when she began her term as Assistant Attorney General, three areas of particular importance were “to sharpen the focus of our ongoing fight against international corruption,” “to increase transparency in charging decisions with respect to corporate prosecutions,” and “to encourage and foster meaningful ... Continue Reading

Embraer Agrees to Pay More than $107 Million to Resolve Foreign Corrupt Practices Act Charges

On October 24, 2016, Brazilian aircraft manufacturer Embraer S.A. entered into a three-year deferred prosecution agreement (DPA) to resolve criminal charges relating to bribery of government officials in the Dominican Republic, Saudi Arabia and Mozambique and for falsely recorded payments in India.  As part of the DPA, the company admitted to paying bribes to government officials and falsifying books and records in connection with aircraft sales to foreign governments and state-owned entities.  The DPA requires ... Continue Reading

Former California State Senator Ronald Calderon Sentenced to 42 Months in Federal Prison for Receiving over $150,000 in Bribes

On October 21, 2016, former California State Senator Ronald S. Calderon was sentenced to 42 months in prison after pleading guilty to one count of honest services mail fraud.  In his plea agreement, Calderon admitted that he accepted bribe payments from the owner of a Long Beach, California hospital to keep in place California legislation that the hospital owner exploited in a $500 million healthcare fraud scheme.  Calderon also admitted that he accepted bribes from ... Continue Reading

Nursing Home Pharmacy to Pay over $28 Million to Settle Kickback Allegations

On October 17, 2016, Omnicare Inc. agreed to pay over $28 million to resolve allegations that it solicited and received kickbacks from Abbott Laboratories in exchange for promoting their drug to its nursing home patients.  According to the complaint, Omnicare accepted payments from Abbott in return for promoting one of Abbott’s drugs, and then described the payments as “grants” or “educational funding.”  A global civil and criminal resolution was reached with Abbott in 2012, in ... Continue Reading

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