Updates on the Africa Sting and More from The FCPA Professor
[Editor's note: It has been a few days since we have posted something from FCPA columnist Mike Koehler, but he has had plenty to say in the interim. To get caught up, here is a roundup of his recent posts, starting with an update on the landmark Africa sting case. Click the title to view the entire story at Mr. Koehler's blog FCPA Professor.]
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Africa Sting – Not Guilty Pleas
Today was arraignment day for the Africa Sting defendants in Judge Richard Leon’s courtroom in the Federal District Court in Washington D.C.
During the arraignment, part of which concluded this morning, and part of which is still going on this afternoon given the number of defendants, all of the defendants thus far have pleaded not guilty.
Africa Sting – Press Release Parade
As indicated in a prior post (here), the Africa Sting charges, at this point, only involve individuals.
However, these individuals are employees, executives, and in some cases owners of business organizations and underrespondeat superior principles the organization can be accountable for the illegal acts of its employees and agents.
This is not to suggest that prosecution of the organizations employing the indicted individuals is likely or even probable; rather the ultimate issue will be one of prosecutorial discretion applying the Principles of Federal Prosecution of Business Organizations (see here).
With that in mind, it is interesting to see the different ways in which the various business organizations are “publicly speaking” on this issue. Many of the business organizations involved are small and the websites do not have a separate news or press release tab or otherwise address the issue.
In the public statements available, you will see that the organizational responses fall across a wide spectrum from solemn yet forceful, to combative and rambling, to short and diplomatic.
Potpourri: Roundup of Recent FCPA Events
A Friday roundup of recent FCPA events.
An FCPA Sentencing Trend?
As noted in yesterday’s DOJ release (here), two former executives of Willbros International Inc. (a subsidiary of Houston-based Willbros Group Inc.) were sentenced for their roles in a conspiracy to make improper payments to “foreign officials” in Nigeria and Ecuador.
Jason Edward Steph was sentenced to 15 months in prison and Jim Bob Brown was sentenced to 366 days in prison.
A Double Standard? Part II
A government official has over $7,000 of expenses paid for by an organization hoping to establish a personal connection with the official and seeking access to the official to educate him on a multibillion dollar program favored by the organization.
The same organization spends over $20,000 for baggage-handling tips, alcohol, snacks, refreshments, and other “trip supplies” for another government official.
Sounds like the organization has some FCPA issues, right?
Blackwater in Hot Water
The New York Times (here) reports that the DOJ “is investigating whether officials of Blackwater Worldwide tried to bribe Iraqi government officials in hopes of retaining the firm’s security work in Iraq.”
According to the Times, the DOJ’s fraud section open an investigation “late last year” to determine whether Blackwater employees violated the FCPA
Beefing Up the Budget
DOJ recently announced (here) its FY 2011 budget request. The budget request includes a $235 million increase over the FY 2010 enacted appropriation, “including 708 new positions (143 agents and 157 attorneys) to restore confidence in our markets, protect the federal treasury and defend the interests of the U.S. Government.”
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The above post was contributed to Corporate Compliance Insights by Mike Koehler, an Assistant Professor of Business Law at Butler University. It was reprinted from his blog FCPA Professor.
Mr. Koehler is also CCI’s Featured FCPA Columnist. He has a wide range of experience and expertise on this emerging topic, and he contributes regularly to our discussion of current FCPA matters.
Follow the link to his bio page to learn more about Mike Koehler.
Tags: africa sting, fcpa, foreign corrupt practices act
