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Richard L. Cassin Publisher and Editor

Andy Spalding Senior Editor

Jessica Tillipman Senior Editor

Elizabeth K. Spahn Editor Emeritus

Cody Worthington Contributing Editor

Julie DiMauro Contributing Editor

Thomas Fox Contributing Editor

Marc Alain Bohn Contributing Editor

Bill Waite Contributing Editor

Shruti J. Shah Contributing Editor

Russell A. Stamets Contributing Editor

Richard Bistrong Contributing Editor 

Eric Carlson Contributing Editor

Bill Steinman Contributing Editor

Aarti Maharaj Contributing Editor


FCPA Blog Daily News

Entries in Enforcment List (12)

Wednesday
Jan162013

First stop -- the Archive tab

On the menu near the top of this page, you'll find the Archive tab.

Click to read more ...

Tuesday
Oct162012

Where to (always) find our lists

We're crazy about lists and they appear in this space often.

But for readers, finding the latest version of our lists can be hard.

So we've found them a permanent home.

Click to read more ...

Thursday
Oct042012

Our reference section (October 2012)

Here are some of the reports, indexes, and lists we maintain. They're always free, thanks to the generous support of our sponsors.

Click to read more ...

Thursday
Jun142012

Excavating Enforcement Data

How many corporate enforcement actions since 2005 didn't involve criminal or civil charges against any employees from the company? We find out.

Click to read more ...

Thursday
Jan052012

Enforcement At The Century's Dawn

The years 2000 through 2005 are already ancient FCPA history. There were just fifteen cases and all but two penalties were under $5 million.

Click to read more ...

Monday
Oct032011

Enforcement Report For Q-3 '11

During the calendar quarter just ended, there were two corporate enforcement actions and two individual convictions.. . .

Click to read more ...

Tuesday
Sep202011

Koehler: Individual Prosecutions Lag Corporate Settlements

Mike Koehler had a fascinating post on his FCPA Professor blog today. He did the math and found that in seventy-one percent of the FCPA enforcement actions against corporations since 2005, the DOJ didn't charge any employees.

Click to read more ...

Tuesday
Sep132011

Our Reference Section (September 2011)

We're always glad when people stop by here to do some research. Here are some of the most popular reports, indexes, and lists.

Click to read more ...

Friday
Oct012010

Enforcement Report For Q3 '10

Our quarterly enforcement report, with all the FCPA-related indictments, settlements, pleas, and extradition news from the prior three months.

Click to read more ...

Thursday
Sep162010

Corporate Enforcement Countdown

We're searching for clues about how enforcement decisions are made, and whether corporate settlements might be replacing individual prosecutions. Now we've got some numbers to help in the search.

Click to read more ...

Thursday
Apr012010

Enforcement Report For Q1 '10

It was the busiest three months ever for FCPA-related enforcement. Here's what happened since January 1st:

Indictments, guilty pleas, and sentencings. Some aren't strictly FCPA actions, as in the Haiti telecom bribe case. But they're all related to or part of an FCPA prosecution. 

Natco (January 6) resolved civil books and records and internal controls charges with the SEC. Agreed to a $65,000 civil penalty.

Shot-Show Indictments (January 19) charged 22 individuals:

•    Daniel Alvirez, 32, Arkansas

•    Lee Allen Tolleson, 25, Arkansas

•    Helmie Ashiblie, 44, Woodbridge, Va.

•    Andrew Bigelow, 40, Sarasota, Fla.

•    R. Patrick Caldwell, 61, Sunrise, Fla.

•    Stephen Gerard Giordanella, 50, Sunrise, Fla.

•    Yochanan R. Cohen, a/k/a Yochi Cohen, 47, San Francisco

•    Haim Geri, 50, North Miami Beach, Fla.

•    Amaro Goncalves, 49, Springfield, Mass.

•    John Gregory Godsey, a/k/a Greg Godsey, 37, Decatur, Ga.

•    Mark Frederick Morales, 37, Decatur, Ga.

•    Saul Mishkin, 38, Aventura, Fla.

•    John M. Mushriqui, 28, Upper Darby, Penn.

•    Jeana Mushriqui, 30, Upper Darby, Penn.

•    David R. Painter, 56, U.K.

•    Lee M. Wares, 43, U.K.

•    Pankesh Patel, 43, U.K.

•    Ofer Paz, 50, Israel

•    Jonathan M. Spiller, 58, Ponte Vedra Beach, Fla.

•    Israel Weisler, a/k/a Wayne Weisler, 63, Stearns, Ky.

•    Michael Sachs, 66, Stearns, Ky.

•    John Benson Wier III, 46, St. Petersburg, Fla.

Richard T. Bistrong (January 21), the key intermediary identified as “Individual 1” in the Shot Show indictments (above) was charged with conspiracy to violate the FCPA.

Jim Bob Brown (January 28), 48, former Willbros employee, was sentenced in federal court in Houston to one year and one day in prison and fined $17,500 for conspiracy to violate the FCPA.

Jason Edward Steph (January 28), 40, former Willbros employee, was sentenced to 15 months and fined $2,000 for conspiracy to violate the FCPA.

John W. Warwick
(February 10), 64, of Virginia Beach, Va., pleaded guilty to one count of conspiracy to violate the FCPA.

Jean Fourcand (February 19), 62, of Miami, pleaded guilty to laundering money used to bribe former officials at Haiti's state-owned telecommunications company.

BAE Systems plc (March 1) pleaded guilty to conspiring to defraud the U.S. by impairing and impeding its lawful functions, to make false statements about its Foreign Corrupt Practices Act compliance program, and to violate the Arms Export Control Act and International Traffic in Arms Regulations. It was fined $400 million.

Robert Antoine (March 12), 62, pleaded guilty to a money-laundering conspiracy (see Jean Fourcand above).

Nexus Technologies, Inc. (March 16) pleaded guilty to conspiracy, and to violating the Foreign Corrupt Practices Act, and the Travel Act in connection with commercial bribes and money laundering.

Nam Nguyen (March 16), 54, the president and owner of Nexus Technologies, pleaded guilty to conspiracy, a substantive FCPA violation, a violation of the Travel Act, and money laundering.

An Nguyen (March 16), 34, an employee of Nexus Technologies, pleaded guilty to conspiracy, a substantive FCPA violation, a violation of the Travel Act, and money laundering.

Kim Nguyen (March 16), 41, another sibling, pleaded guilty to conspiracy, a substantive FCPA violation, and money laundering.

Innospec (March 18) pleaded guilty to wire fraud and FCPA violations. In its DOJ, settlement, it will pay a $14.1 million criminal fine and retain an independent compliance monitor for three years. In its SEC settlement, It will disgorge $11.2 million in profits for violating the FCPA's anti-bribery, internal controls, and books and records provisions.

Daimler AG (March 24) charged in a criminal information with one count of conspiracy to violate the FCPA (18 U.S.C. §371) and one count of violating the books and records provisions (15  U.S.C. §§78m(b)(2)(A), 78m(b)(5), and 78ff(a), and 18 U.S.C. §2). Daimler is expected to pay $185 million -- $93.6 million for a criminal fine and $91.4 million in civil penalties. Hearing on April 1, 2010.

Sentencing delays:

Gerald and Patricia Green's sentencing in Los Angleles was postponed from January 21 to April 1, 2010 at 8:00 am.

Hans Bodmer (SDNY 03-947): sentencing was scheduled for February 23, 2010. Docket indicates a sealed document was placed in vault on March 25, 2010 (2004 - Bourke/Kozeny – Note: Was not convicted on FCPA count against him). Sentencing may be delayed until the outcome of Bourke's appeal.

Albert "Jack" Stanley's sentencing in Houston was rescheduled from February 24 to May 26, 2010 at 10:30 am.

Leo Winston Smith (CDCA 07-69): sentencing delayed from March 22, 2010; currently scheduled for May 10, 2010 (2007 - Pacific Consolidated).

Charles Paul Edward Jumet (EDVA 09-397): sentencing delayed from March 26, 2010; currently scheduled for April 19, 2010 (2009 - Panama; PECC).

Juan Diaz (SDFL 09-20346): sentencing delayed from March 31, 2010; sentencing currently scheduled for May 27, 2010 (2009 - Haiti Telecom).

Antonio Perez (SDFL 09-20347): sentencing delayed from March 31, 2010; sentencing currently scheduled for May 27, 2010 (2009 - Haiti Telecom).

Extraditions:

Viktor Kozeny (January 26), 46, the Czech-born fugitive wanted in the United States for conspiracy to violate the FCPA won a decision in the Bahamas court of appeal that continues to block his extradition to the U.S. The U.S. may appeal to the U.K. Privy Council.

Jeffrey Tesler (March 25), 61, a U.K. citizen indicted in February 2009 by a federal grand jury in Houston for being KBR's middleman in Nigeria. A judge in London ruled he should be extradited to the U.S. to face trial. His appeal is expected to be lengthy.

In the pipeline. Here are companies that during the quarter announced possible FCPA settlements:

ABB reserve of $850 million

Alcatel-Lucent reserve of $137.4 million

ENI reserve of €250 million

Pride International, Inc. reserve of $56.2 million

Technip reserve of €245 million

Veraz reserve of $300,000

Civil suits. Private parties have no right of action under the FCPA. Only the DOJ and SEC can enforce it. Plaintiffs bring FCPA-related claims under RICO (18 U.S.C. § 1962(c)), conspiracy to violate RICO (18 U.S.C. § 1962(d)), fraud, civil conspiracy, breach of fiduciary duties, and others.

A couple of noteworthy FCPA-related civil suit developments during the quarter were:

Dow Chemical A Delaware chancery court cited Dow's corporate compliance program as a reason for dismissing a shareholder derivative suit against the company's current directors that alleged they failed to prevent overseas bribery.

BAE A federal appeals court affirmed the dismissal of a shareholder derivative suit against some current and former directors and executives of U.K.-based BAE Systems PLC. The trial court applied English law to the case.

If we've missed any companies or individuals that should be included in FCPA-related actions, please let us know.

Special thanks to Marc Bohn for some of the sentencing information.

Wednesday
Feb242010

The All-In-One FCPA Enforcement List

This is really it. A snapshot of (we think) all FCPA-related ongoing prosecutions, pending sentencings, extraditions, at-large fugitives, and appeals.

This post comes courtesy of Washington, D.C. lawyer Marc Alain Bohn and his firm's librarian, Karen Polk. (Library professionals are unsung heroes of the legal world.) We're grateful for their work assembling and checking the list and their generosity in allowing us to publish it.

Here it is:

FCPA-Related Pending Sentencings – 19 Individuals

  • Joshua Cantor (SDNY 01-687): sentencing was last scheduled for Dec. 6, 2006 and no further information is available on the docket (2001 - ABNH)
  • Hans Bodmer (SDNY 03-947): sentencing was scheduled for February 23, 2010; sentencing rescheduled to August 23, 2010 (2004 - Bourke / KozenyNote: Was not convicted on FCPA count against him)
  • Albert (Jack) Stanley (SDTX 08-2680): sentencing currently scheduled for February 24, 2010 (Note: Docket now says “closed”) (2008 - KBR)
  • (2) Gerald and Patricia Green (CDCA 08-59): sentencing currently scheduled for March 4 or 11, 2010 (2008 - Thai Film Festival)
  • Leo Winston Smith (CDCA 07-69): sentencing currently scheduled for March 22, 2010 (2007 - Pacific Consolidated)
  • Juan Diaz (SDFL 09-20346): sentencing currently scheduled for March 31, 2010 (2009 - Haiti Telecom)
  • Antonio Perez (SDFL 09-20347): sentencing currently scheduled for March 31, 2010 (2009 - Haiti Telecom)
  • Joseph T. Lukas (EDPA 08-522): sentencing currently scheduled for April 6, 2010 (2009 - Nexus Technologies & Nguyen)
  • Si Chan Wooh (DCOR 07-244): sentencing currently scheduled for April 26, 2010 (2007 - Schnitzer Steel)
  • Jean Fourcand (SDFL 10-20062): sentencing currently scheduled for May 3, 2010 (2010 - Haiti TelecomNote: Was not convicted of an FCPA count)
  • Clayton Lewis (SDNY 03-930): sentencing currently scheduled for July 1, 2010 (2004 - Bourke / Kozeny)
  • Paul G. Novak (SDTX 08-22): sentencing currently scheduled for July 9, 2010 (2009 - Willbros)
  • Mario Covino (CDCA 08-336): sentencing currently scheduled for Feb. 14, 2011 (2009 - CCI)
  • Richard Morlok (CDCA 09-05): sentencing currently scheduled for Feb. 14, 2011 (2009 - CCI)
  • John Warwick (EDVA 09-449): sentencing currently scheduled for May 14, 2010 (2009 - Panama; PECC)
  • Thomas Farrell (SDNY 03-290): No sentencing date currently on the docket (2003 - Bourke / Kozeny)

FCPA-Related Pending Prosecutions – 39 Individuals

  • Bobby Benton (SDTX 09-3963): Charges brought by SEC (2009 - Pride)
  • James Giffen (SDNY 03-404): Ongoing prosecution. No trial date set (2003 - CIA / Kazakhstan)
  • Richard Bistrong (DCDC 10-21): Ongoing prosecution. No trial date set (2010 - Shot Show)
  • Helmie Ashiblie (DCDC 09-347): Ongoing prosecution. No trial date set (2010 - Shot Show)
  • Andrew Bigelow (DCDC 09-346): Ongoing prosecution. No trial date set (2010 - Shot Show)
  • R. Patrick Caldwell (DCDC 09-345): Ongoing prosecution. No trial date set (2010 - Shot Show)
  • Yochanan R. Cohen (DCDC 09-343): Ongoing prosecution. No trial date set (2010 - Shot Show)
  • Haim Geri (DCDC 09-342):Ongoing prosecution. No trial date set (2010 - Shot Show)
  • Amaro Goncalves (DCDC 09-335): Ongoing prosecution. No trial date set (2010 - Shot Show)
  • Saul Mishkin (DCDC 09-344): Ongoing prosecution. No trial date set (2010 - Shot Show)
  • Pankesh Patel (DCDC 09-338): Ongoing prosecution. No trial date set (2010 - Shot Show)
  • Ofer Paz (DCDC 09-339): Ongoing prosecution. No trial date set (2010 - Shot Show)
  • John Benson Wier (DCDC 09-341): Ongoing prosecution. No trial date set (2010 - Shot Show)

Known FCPA-Related Pending Appeals – 2 Individuals

  • Frederic Bourke (SDNY 05-518): Sentenced on 11/12/09. Currently out on bail pending appeal (2005 - Kozeny / Bourke)
  • William Jefferson (EDVA 07-209): Sentenced on 11/13/09. Currently out on bail pending appeal (2007 - Nigeria VP)

FCPA-Related Pending Extraditions – 4 Individuals

  • Jeffrey Tesler (SDTX 09-98): Currently attempting to extradite from the United Kingdom. Decision expected on March 25, 2010 (2009 - KBR)
  • Wojciech Chodan (SDTX 09-98): Currently attempting to extradite from the United Kingdom. Decision expected on April 20, 2010 (2009 - KBR)
  • Ousama Naaman (DCDC 08-246): Currently attempting to extradite from Germany (2009 - Oil for Food)
  • Victor Kozeny (SDNY 05-518): Currently attempting to extradite from the Bahamas (2005: Kozeny / Bourke)

FCPA-Related Fugitives – 10 Individuals

  • Roy Fearnley (SDTX 07-129): Charged by SEC (2007 - Baker Hughes)
  • Joaquin Pou (SDFL 89-802): Fugitive (1989 - Dominican Republic General)