Doing Business in Italy? You Have Been Warned…

Former Italian Premier Silvio Berlusconi (Photo courtesy of Wikipedia)Last week, I was discussing a report with fellow compliance practitioner Craig Bloom, that Giuseppe Orsi, President of one of Italy’s largest conglomerates, Finmeccanica, SpA, was arrested under allegations of bribery in Finmeccanica’s sale of twelve helicopters to the Indian Government in 2010.

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Finmeccanica chief arrested for India bribes

Giuseppe Orsi, chairman and CEO of Finmeccanica (Photo courtesy of Wikipedia)The head of Italian defense firm Finmeccanica SpA was arrested Tuesday by Italian police on allegations that he bribed Indian officials to win sales of helicopters.

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Eni chief investigated in Algeria bribe case

The CEO of Italian energy giant Eni SpA  is under investigation by Italian authorities for bribes allegedly paid in Algeria by its subsidiary Saipem SpA.

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Saipem CEO out in corruption probe

Italian oil and gas drilling contractor Saipem SpA confirmed that it is under investigation for corruption by Italian authorities for alleged payments in Algeria.

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'Carbon copy prosecutions' change the rules of the game

A recent University of Chicago Legal Forum article looks deep into an important new enforcement trend -- duplicative enforcement actions in multiple countries.

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Who Paid FCPA-Related Fines Overseas?

Here's a list of fines paid overseas for bribery by companies that have settled FCPA enforcement actions.

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KBR In £7 Million UK Settlement

KBR's wholly-owned subsidiary, M.W. Kellogg Limited, has settled civil corruption charges with the U.K. Serious Fraud Office.

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FCPA Conspiracy Theories

Conspiracy charges aren't always used only to reward cooperating FCPA defendants. Here are some reasons why the DOJ might use the conspiracy statute instead of pressing substantive FCPA counts.

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But Is It Right?

Something big, very big, is happening in FCPA enforcement. The top ten FCPA settlements of all time involve penalties of $2.8 billion. The top six happened in just the past 20 months and account for 95% of that, or $2.67 billion.

So far this summer, Snamprogetti / ENI of Italy and Technip of France each paid more than a third of a billion dollars to resolve FCPA offenses. Just three years ago, the biggest settlement on record was Baker Hughes' $44.1 million payment, and that amount electrified the FCPA world. Who could have guessed that only a few years later, settlements that size would hardly get a glance, and payouts eight times bigger would become the norm.

As we ride this hockey stick toward heaven, we need to ask some questions. Like, are mega-settlements good for compliance or do they simply put a price tag on non-compliance? What about shareholders? They're innocent of the corruption but ultimately pay the tab. Why do five of the top six settlements involve non-U.S. corporations? Do giant penalties punish wrongdoers or shield top executives from criminal prosecution? And do they distort enforcement decisions in ways we don't yet understand?

Those are some of the questions. Ruminations to follow.

The FCPA's Top Ten

Here are the top ten FCPA settlements of all time. If our math is right, the financial penalties (criminal fines, civil disgorgement, and prejudgment interest) add up to $2.8 billion, with almost 50% of that coming from the top two settlements. Five of the top six involve non-U.S. companies. The oldest case on the list is Titan Corporation's from 2005; the newest is Snamprogetti / ENI's from July 7, 2010.

They are:

1. Siemens: $800 million in 2008.

2. KBR / Halliburton: $579 million in 2009.

3. BAE: $400 million in 2010.

4. Snamprogetti Netherlands B.V. / ENI S.p.A: $365 million in 2010.

5. Technip S.A.: $338 million in 2010.

6. Daimler AG: $185 million in 2010.

7. Baker Hughes: $44.1 million in 2007.

8. Willbros: $32.3 million in 2008.

9. Chevron: $30 million in 2007.

10. Titan Corporation: $28.5 million in 2005.

Editor's note: This post was updated here.