Showing posts with label corruption. Show all posts
Showing posts with label corruption. Show all posts
By Matthew Richardson
DOJ Headquarters, Washington D.C.
The average person has an instinctive understanding of the fact that when an act of corruption occurs, some individual somewhere, an actual human being, must be responsible. If a company pays bribes to get contracts, or submits false documents and an official looks the other way, or does shoddy work and is never held to account, we recognize that there must have been somebody, somewhere, who was aware or should have been aware of the misconduct and did the wrong thing. This is part of why so many continue to be upset that the financial institutions that helped bring about the 2009 financial crisis are widely recognized to have behaved improperly, but individuals were never really held to account.

It’s in this context that so many people concerned about corruption in US international commercial transactions have expressed such interest in the Yates Memo, so called because of Deputy Attorney General Sally Yates’ authorship. The Yates Memo is an example of messaging by the Department of Justice, broadcasting for all intents and purposes, that they get it – it’s not good enough to fine large institutions and publicize evidence of institutional misconduct. No, the Yates Memo is an effort by the DOJ to put large multinational corporations and the FCPA defense bar on notice that the DOJ wants to start coming after you, and they want to put an individual’s name next to a fined corporation and say “we got the one who did it!”
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February 22, 2016
By Matthew Richardson

91% of Ghanaians believe that the police are corrupt – higher than the percentage for politicians. That’s really saying something. But what’s most surprising is that new research shows that when the salaries of Ghanaian cops were raised, so were the bribes they demanded. The long-standing theory that petty corruption is a response to under-resourcing of enforcement officers looks much weaker in the face of results like this. For those interested in the public policy tools available for anti-corruption, appealing to the better nature of crooked cops by providing a living wage may not be the panacea so many expected.
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February 10, 2016
By Matthew Richardson

International investigators and enforcement institutions often receive an outsized share of coverage and interest in the anti-corruption field. However, it is worth remembering that national authorities, particularly in the developing world, are on the frontlines of the world’s anti-corruption efforts. These institutions and individuals are entrusted with significant power and responsibility, so the sting is particularly intense when the misappropriations investigator in Nigeria is itself subject to investigation for misappropriation of funds, potentially “diverting” as much as $5 billion in the course of its operating activities.
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November 23, 2015
By Matthew Richardson

Unlike other countries, such as the UK, American real estate agents are not required to report suspicious activities to relevant authorities. Given that real estate is a popular vehicle for stashing illicit financial gains, perhaps it would have been wiser for this undercover journalist paying for property in cash to pretend to be “Boris” the corrupt health minister in New York rather than London.   
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October 16, 2015
By Matthew Richardson

A recent report by KPMG indicates that corrupt activates are migrating away from sanctionable international companies. As more countries begin to police the misconduct of commercial enterprises abroad, there are strong incentives for companies to find partners willing to engage in corrupt activities on their behalf. Particularly given the relative rareness of “right-to-audit clauses” such third-party sheltering can be highly effective.
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September 18, 2015
By Matthew Richardson

If you can’t get people to stop walking on grass, you might as well pave the path. That appears to be the mentality in Romania, where the suggestion has arisen that, by requiring rather than prohibiting bribes to doctors, legal magic converts this common illicit exchange of money from corruption into legitimate payment for services. Beyond the interesting governmental and philosophical questions presented by this idea, within the realm of sanctions, a thoughtful observer might raise two questions. First, whether this constitutes legitimization within the sanctions regimes of foreign actors such as the United States (FCPA) or multilateral development banks (World Bank, IADB, etc.). Second, how any system can distinguish between misconduct and fair dealing when an individual can discreetly pass a few bills to a physician and receive immediate care, while someone else watches the minutes go by helplessly in the waiting room.
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September 17, 2015
By Matthew Richardson

The United States and developed countries have long struggled to fashion robust and comprehensive international anti-corruption programs, though the U.S. FCPA was a strong early attempt. However, the scale of corruption in China is on another scale entirely. Even Wang Jiarui, head of the Chinese Communist Party’s international department, admits that the lack of a sanctions regime is a huge challenge. With so many officials involved and so many assets now overseas, whether the Party can even hope to create an independent investigative body is an open question.
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September 16, 2015

By Matthew Richardson

United States FCPA prosecutions for extraterritorial misconduct are most attention grabbing when large corporations engage in corrupt activities. Few would first think of a Thai film festival as the cutting edge of anti-corruption efforts. Nevertheless, Thai tourism boss Juthamas Siriwan may now escape extradition to the United States, despite alleged receipt of bribes from a Hollywood producer. Her recent indictment in Thailand will likely preclude extradition due to existing treaty obligations between the two countries. This is another reminder that the reach of the FCPA in terms of either specific countries or conduct can remain surprising, and inconsistent. One could even imagine well-connected officials seeking domestic indictment to avoid potential extradition. Maybe there’s a Hollywood movie in it somewhere?
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September 10, 2015
By Sam Willie

The Wall Street Journal reports on an announcement that the FBI will triple the number of agents it devotes to Foreign Corrupt Practices Act (FCPA) Enforcement from 10 to 30 agents. Joseph Campbell, Assistant Director of the FBI’s Criminal Division justifies this move by arguing that “the growing global economy and the growing nature of international commerce with globalization of more companies and economies, … creat[es] more opportunities for the potential of FCPA and corruption.” The Bureau’s colleagues at the Securities and Exchange Commission and the U.S. Department of Justice will likely welcome this news as they often utilize the FBI to conduct investigations of potential FCPA violations. FBI Agents will also be expected to play a role in assisting other nations claw back funds paid to corrupt officials.
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March 26, 2015
By Rick Mendenhall

Although domestic news is abuzz with New Jersey Senator Menendez’s pending corruption charges, the legal community is looking abroad this month toward combatting international corruption through legal frameworks.

Please join George Washington University Law School this March 25th when they host a conference on institutional responses to international corruption. Speakers include lawyers from the World Bank, professors and senior officials from the Departments of Commerce and State.

For those interested in international safeguards against corruption, Professor Susan Aaronson, one of the conference’s speakers, explains here how the WTO fosters anti-corruption governance in developing countries.
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March 25, 2015
By Rick Mendenhall

Remember that time I wrote about the sex appeal of corruption in blogposts? Well DC’s international legal events community must be following The Summit because we have a cavalcade of corruption events this month.

Please join the American Society of International Law this April when they host a conference on corruption in international arbitration. Speakers include partners from Sidley Austin, White & Case, and local professors. Panelists will address domestic remedies for corrupt international arbitration decisions, and how corruption claims might alter the jurisdictions of arbitration panels.

For those interested in international arbitration, Inside Counsel has a good run down here of the main differences between international arbitration and domestic litigation. If you just want to read about corruption, The Economist has a tremendous follow-up on the Chinese official I wrote about in November who stashed ten semi-trailer truckloads of gold, jade and cash in his basement.
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March 23, 2015
By Rick Mendenhall

There’s something sexy about the word corruption. I’m sure you’ve all scanned through your GAoogle news feed at one time or another and clicked a link just because it had corruption in the title. Because of this, I’m going to try and say corruption as often as possible in this post. Even when it might be unnecessary to say corruption. For instance, The Departed is an academy award winning movie about corruption.

Speaking of corruption, this Friday, November 13, 2014, the American Bar Association is hosting a talk on corruption risks for the United States defense and aerospace industry as they agree to more and more deals with foreign countries, especially with Asian countries. If you’re interested in the defense arms race in Asia, click here for the Summit’s coverage of it (sorry it’s not about corruption). If you’re interested in the defense industry in general, the PR Newswire has a thorough defense market forecast through 2020.

But if you’re actually just attracted to corruption, check out this BBC article about a Chinese official who stashed so many cash-bribes in his home that money-counting machines broke while tallying the illegal treasure trove.
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November 12, 2014
By Matt Klinger

Enforcement of anti-corruption laws remains a top priority in the U.S. and abroad. Learn how to avoid violations of the U.S. Foreign Corrupt Practices Act (FCPA) at the AmericanBar Association's Sixth Annual National Institute on the FCPA from September 18 to 20.

The panelists will include senior officials from FCPA enforcement units at both the Securities and Exchange Commission and Department of Justice, as well as a senior counsel at the World Bank.

The keynote speaker at the event is slated to be Keir Starmer, QC, Director of Public Prosecutions for the U.K.'s Crown Prosecution Service.
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August 31, 2013
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