The private equity industry is facing increased scrutiny by the U.S. Government for potential violations of the Foreign Corrupt Practices Act (“FCPA”). The Securities and Exchange Commission (“SEC”) has created a new private fund unit and publicly asserted that it is more closely examining the operations of private equity funds and their portfolio companies. As with all SEC units, the private fund unit works in conjunction with the U.S. Department of Justice (“DOJ”) criminal and civil fraud divisions. This increased attention will lead to more investigations, and has enhanced the need for robust FCPA compliance by private equity funds.
Continue Reading U.S. Targets Private Equity Funds for FCPA Scrutiny
The FCPA Challenges of Doing Business in Cuba
This article originally appeared in the June 24, 2015 edition of Corporate Counsel and is reprinted with permission. © 2015 ALM Media Properties, LLC.
On December 17, 2014, President Barack Obama announced a set of diplomatic and economic changes aimed at normalizing relations between the United States and Cuba after nearly 55 years of barriers between the two countries. Obama stated that diplomatic relations would be re-established with Cuba, and on May 29 his administration removed Cuba from the U.S. list of state sponsors of terrorism. New regulations issued by the U.S. Department of Treasury and U.S. Department of Commerce on January 16, 2015, allow certain U.S. exports of telecommunications, construction materials and farming equipment, and allow U.S. banking transactions in Cuba.
Continue Reading The FCPA Challenges of Doing Business in Cuba
DOJ’s FCPA Enforcement Power Gets A Big Boost
In 2011, the Department of Justice (“DOJ”) stated that “[i]t’s not necessarily the wisest move for a company” to challenge the definition of “foreign official” under the Foreign Corrupt Practices Act (“FCPA”), and that “[q]uibbling over the percentage ownership or control of a company is not going to be particularly helpful as a defense.”[1] The DOJ’s prophecy rang true in the Eleventh Circuit’s recent decision in U.S. v. Esquenazi, 2014 U.S. App. LEXIS 9096 (11th Cir. 2014).
Continue Reading DOJ’s FCPA Enforcement Power Gets A Big Boost