Herbalife Charged Criminally for Bribery

This morning Herbalife (NYSE: HLF) was charged criminally for paying bribes to Chinese officials. The action is related to criminal liability under FCPA (U.S. Foreign Corrupt Practices Act). The company disclosed in an SEC filing today: Herbalife violated the books and records and internal controls provisions of the FCPA The …

Dodd-Frank Whistleblower Rule Adopted by SEC Discourages Internal Reporting

The Dodd-Frank Wall Street Reform and Consumer Protection Act, enacted on July 21, 2010, established a whistleblower incentive program requiring the Securities and Exchange commission to provide monetary awards to whistleblowers who come forward with information about the violation of federal securities laws, including violations of the Foreign Corrupt Practices …

FCPA Books and Records Violations: The Government Will Always Win.

The Foreign Corrupt Practices Act (FCPA) is aimed at preventing bribery of foreign officials. One key part of the FCPA is the books and records provision, which includes the following from 15 U.S.C. § 78m: (2) Every issuer which has a class of securities registered pursuant to section 78l of …

Learn From the Costly FCPA Mistakes of Others

A recent Compliance Week article, An Expensive Lesson on FCPA Compliance [subscription required], provides some valuable insights on the direction that our government is taking with enforcement. Foreign Corrupt Practices Act violations are a huge focus of the feds right now. Why? Because there are plenty of violations, there is …