Carol Lee, former associate at Clifford Chance, has joined Womble Bond as a partner in the business litigation group. Lee's practice will center on export controls, economic sanctions, Committee on Foreign Investment in the U.S. proceedings and Foreign Corrupt Practices Act matters, the firm said.
David Last, former chief of DOJ's Foreign Corrupt Practices Act unit, has joined Cleary Gottlieb as a partner in the Washington, D.C.-based white-collar and enforcement practice. Last's practice will key in on "criminal and civil FCPA matters, internal investigations, and defending companies and individuals in high-stakes enforcement actions," the firm said.
The U.S. District Court for the Southern District of New York rejected FTX founder Sam Bankman-Fried's bid to dismiss the government's claim that the infamous crypto-exchange executive violated the Foreign Corrupt Practices Act's anti-bribery provision (U.S. v. Samuel Bankman-Fried, S.D.N.Y. # 22-00673).
DOJ picked co-managing partner of Jenner & Block, Katya Jestin, and Ropes & Gray partner Alex Rene to serve as independent monitors for Swiss commodity trading and mining giant Glencore under the company's guilty plea agreement for violating the Foreign Corrupt Practices Act (see 2205270044). The tenure of monitors will run for three years as part of the resolution struck in May 2022. Jestin will lead a team of Jenner & Block attorneys as they review the company's market integrity compliance, while Rene will head up a unit looking into Glencore's FCPA compliance.
The U.S. Supreme Court's recent decision in SEC v. Cochran could usher in the end of the agency's in-house court for most cases, including Foreign Corrupt Practices Act matters, according to Richard Cassin, founder of the FCPA blog. Should this happen, Cassin said in a June 12 post, it would be hard to imagine how the SEC could maintain its current level of enforcement activity.
A Texas court dismissed charges related to a U.S. foreign bribery investigation involving Portuguese banker Paulo Jorge Da Costa Casequeiro Murta, ruling the U.S. violated the Speedy Trial Act by failing to bring Murta to trial within the 70-day limit set in the statute (United States v. Paulo Jorge Da Costa Casqueiro Murta, S.D. Tex. #4:17-00514).
Heightened expectations for cooperation under DOJ’s new corporate enforcement policies present a range of challenges for companies considering whether to submit voluntary disclosures, particularly because the agency’s interpretation of “extraordinary cooperation” is so ambiguous, lawyers said. They also said DOJ’s threshold for “full cooperation” -- a step below extraordinary cooperation -- can sometimes be too difficult to meet.
Technological research firm Gartner settled charges that it violated the Foreign Corrupt Practices Act, agreeing to pay over $2.5 million, the SEC said in a May 26 order implementing cease-and-desist proceedings. The company allegedly bribed officials of the South Africa Revenue Service (SARS) to "obtain and retain business from" SARS. The SEC said a manager of Gartner's consulting wing authorized the firm to enter into subcontracts with an unnamed South African information technology consulting firm, adding that the manager either knew or disregarded the possibility that the money paid to the tech firm would be paid to the SARS officials in exchange for contracts. Under the settlement, the company will pay $1.6 million in civil penalties, $675,974 in disgorgement and $180,790 in prejudgment interest.
The U.S. District Court for the Eastern District of New York dismissed a suit from a group of investors that accused Ericsson of misleading them about elements of a Foreign Corrupt Practices Act proceeding. Judge William Kuntz sided with Ericsson, ruling that the investors failed to claim that the company made misstatements since the alleged lies were "immaterial as a matter of law" or not false when made (In Re Telefonaktiebolaget LM Ericsson Securities Litigation, E.D.N.Y. # 22-1167).
DOJ’s Foreign Corrupt Practices Act Unit is investigating U.S. pharmaceutical company Pfizer for its activities in Mexico, the company disclosed in an SEC filing this month. Pfizer said the agency’s FCPA Unit sent an “informal request” in March “seeking documents relating to our operations in Mexico.” The company is “producing records pursuant to this request.” The probe comes after Pfizer in 2012 reached an agreement with DOJ to resolve FCPA violation charges and as the company handles requests from the FPCA unit for activities in China and Russia, according to its SEC filing.