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Harry Cassin Publisher and Editor

Andy Spalding Senior Editor

Jessica Tillipman Senior Editor

Richard L. Cassin Editor at Large

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

FCPA Blog Daily News

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Monday
Sep162013

Nine of the top ten FCPA cases involve non-U.S. companies. What's up with that?

Hobbies are important and we try to make time for ours -- staring at the list of the biggest FCPA cases of all time.

Stare long enough, we're convinced, and you can learn most of what's important about FCPA compliance and enforcement.

Here are the current mega-cases:

1. Siemens (Germany): $800 million in 2008.

6. Technip S.A. (France): $338 million in 2010.

2. KBR / Halliburton (USA): $579 million in 2009.

7. JGC Corporation (Japan) $218.8 million in 2011.

3. BAE (UK): $400 million in 2010.

8. Daimler AG (Germany): $185 million in 2010.

4. Total S.A. (France) $398 million in 2013.

9. Alcatel-Lucent (France): $137 million in 2010.

5. Snamprogetti Netherlands B.V. / ENI S.p.A (Holland/Italy): $365 million in 2010.

10. Magyar Telekom / Deutsche Telekom (Hungary /Germany): $95 million in 2011.

 

What's the first thing to notice?

Right. Nine of the ten companies are based outside the U.S. The only American-headquartered company is KBR (and its former parent Halliburton) at number two.

How did nine foreign companies land on the FCPA's top ten list?

First, they hadn't been taking FCPA enforcement seriously. They either weren't doing any compliance, or compliance was window dressing to cover up their bribery. Either way, they were sitting ducks for trouble.

Second, they were easy to catch. Because they weren't thinking much about the FCPA, they left evidence of their bribery everywhere -- trails of paper, rivers of money, and scores of witnesses. Even Mr. Magoo could have cracked the cases.

And third, when caught in flagrante delicto FCPA, most didn't cooperate with the feds early enough to cut better deals. Many honestly believed the FCPA didn't reach them and what they did outside the U.S. Out of ignorance or denial or both, they were flat footed when the DOJ and SEC came knocking. First they delayed, then they paid.

That's how nine foreign companies landed on the FCPA's top ten list.

We'll keep staring at the big cases and report back soon.

____________

Richard L. Cassin is the Publisher and Editor of the FCPA Blog. He can be contacted here.