Foreign Corrupt Practices Act Compliance Guidebook E-Book

Martin T. Biegelman

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Serie: Wiley Corporate F&A
• Sprache: Englisch

Seitenzahl: 585

Veröffentlichungsjahr: 2010

Beschreibung

Foreign Corrupt Practices Act Compliance Guidebook shows readers how the Foreign Corrupt Practices Act (FCPA) has grown to critical importance to any U.S. company that does business in a global environment, as well as foreign companies that supply or have agency agreements with U.S. companies. It provides an overview of the business risks and guidance on spotting potential red flags regarding FCPA violation. Business professionals are provided with practical guidance on managing FCPA requirements as part of an overall compliance program.

Leseprobe

Table of Contents

Praise

Title Page

Copyright Page

Dedication

Foreword

Preface

Acknowledgements

CHAPTER 1 - Bribery, Corruption, and the Foreign Corrupt Practices Act

GLOBAL CRACKDOWN

DEVASTATING COST OF CORRUPTION

GOVERNMENT’S COMMITMENT TO FCPA ENFORCEMENT

WATERGATE AND THE BIRTH OF THE FCPA

SECURITIES AND EXCHANGE COMMISSION ENTERS THE FIGHT

SENATE INVESTIGATIONS

KISSINGER’S RESISTANCE

LOCKHEED’S DEFIANCE

QUESTIONABLE CORPORATE PAYMENTS TASK FORCE

FCPA ENACTMENT

CRITICISM OF THE FCPA

A CULTURE OF COMPLIANCE

NOTES

CHAPTER 2 - Overview of the Foreign Corrupt Practices Act

FCPA PROVISIONS

LEVELING THE PLAYING FIELD

ANTIBRIBERY PROVISIONS

BOOKS, RECORDS, AND INTERNAL CONTROLS PROVISION

SARBANES-OXLEY AND THE FCPA

OPINION PROCEDURE

PENALTIES

THIRD-PARTY AND SUCCESSOR LIABILITY

WHY CORRUPTION MATTERS

INCREASED ENFORCEMENT

NOTES

CHAPTER 3 - Government Guidance and Significant Cases

FILIP MEMORANDUM

FCPA COMPLIANCE PROGRAMS: CASE LAW GUIDANCE

COLD CASH: U.S. V. JEFFERSON

VOLUNTARY DISCLOSURE

EVALUATING THE SEABOARD CRITERIA IN MITIGATING ENFORCEMENT ACTIONS

SELECTING A MONITOR: THE MORFORD MEMO STANDARDS

GOVERNMENT PROCUREMENT FRAUD AND THE FCPA

NOTES

CHAPTER 4 - Global Anti-Corruption Efforts

GLOBALIZATION OF LAW ENFORCEMENT COOPERATION

INTERNATIONAL ANTIBRIBERY EFFORTS

INTERNATIONAL ANTI-CORRUPTION ORGANIZATIONS

GLOBAL ANTI-CORRUPTION ENFORCEMENT TRENDS

THE GOOD FIGHT AGAINST CORRUPTION

NOTES

CHAPTER 5 - Siemens: A New Commitment to a Culture of Compliance

COMPANY OVERVIEW AND HISTORY

THE ROAD TO CORRUPTION

MUNICH PUBLIC PROSECUTOR’S OFFICE INVESTIGATION

SELF-DISCLOSURE AND SUBSEQUENT INTERNAL INVESTIGATION

CRIMINAL CHARGES, PLEA AGREEMENTS, AND FINES

NEW CORPORATE COMPLIANCE PROGRAM

CORPORATE COMPLIANCE MONITOR

SIEMENS’ REMEDIAL EFFORTS

PARTNERING WITH THE WORLD’S ANTI-CORRUPTION COMMUNITY

THE ROAD FORWARD

NOTES

CHAPTER 6 - Worldwide Hotspots for Corruption: UK, Russia, Africa, the Middle ...

OVERVIEW

THE NATURAL RESOURCE-CORRUPTION LINK

UK TACKLES INTERNATIONAL CORRUPTION

RUSSIA

AFRICA

MIDDLE EAST

LATIN AMERICA

NOTES

CHAPTER 7 - Worldwide Hotspots for Corruption and Bribery: China, Central Asia, ...

CHINA

HEIGHTENED ANTI-CORRUPTION ENFORCEMENT EFFORTS IN CHINA

CHINA ENFORCEMENT AGENCIES

THE DANGERS OF DOING BUSINESS IN CHINA

CENTRAL ASIA

INDIA

ASIA PACIFIC

NOTES

CHAPTER 8 - BAE Systems: Past Behavior Haunts the Company

AL YAMAMAH DEAL

FBI SCRUTINY

BAE’s DENIAL

SERIOUS FRAUD OFFICE INQUIRY

TONY BLAIR QUASHES THE INVESTIGATION

DOJ’s HARD-LINE APPROACH

BAE RESPONSE

WOOLF COMMITTEE

BAE FOLLOWS A DIFFERENT PATH

NOTES

CHAPTER 9 - Designing an Effective Anti-Corruption Compliance Program

FEDERAL SENTENCING GUIDELINES FOR ORGANIZATIONS

THE SEVEN STEPS TO AN EFFECTIVE COMPLIANCE PROGRAM

DOJ GUIDANCE ON ANTI-CORRUPTION COMPLIANCE PROGRAMS

COMPLIANCE PROGRAM DESIGN

RED FLAGS AND RISK AREAS

ANTI-CORRUPTION DESIGN NEVER ENDS

NOTES

CHAPTER 10 - Implementing an Effective Anti-Corruption Compliance Program

ANTI-CORRUPTION STANDARDS AND PROCEDURES

TRAINING AND COMMUNICATION

M&A DUE DILIGENCE

RISK ASSESSMENTS

INTERNAL ACCOUNTING CONTROLS

OTHER COMPLIANCE PROGRAM BEST PRACTICES

COMMITMENT TO ANTI-CORRUPTION COMPLIANCE PROGRAMS

NOTES

CHAPTER 11 - Monsanto: Fighting Corruption for a Better World

A COMMITMENT TO AGRICULTURE

DOJ AND SEC FCPA INVESTIGATION

ACCEPTANCE OF RESPONSIBILITY AND REMEDIAL ACTIONS

TONE AT THE TOP AND A REVAMPED CODE OF CONDUCT

BUSINESS CONDUCT OFFICE

TRAINING

REGIONAL WORKING GROUPS

FCPA WORKING GROUP GUIDELINES

GIFTS, ENTERTAINMENT, AND OTHER PROMOTIONAL EXPENDITURES

PER DIEM PAYMENTS

FACILITATING PAYMENTS

POLITICAL DONATIONS

CHARITABLE DONATIONS AND DONATIONS TO GOVERNMENTS

TRADE ASSOCIATIONS

DOING BUSINESS WITH FOREIGN OFFICIALS AND THEIR RELATIVES

DEALING WITH THIRD PARTIES

JOINT VENTURES

AUDIT

OPINION FROM OUTSIDE COUNSEL

LOCAL LAW ADVICE

RESPONSE TO POSSIBLE VIOLATIONS

INTERNAL AND INDEPENDENT INVESTIGATIONS

INTERNAL COORDINATION AND TRAINING

THE MONSANTO PLEDGE

NOTES

CHAPTER 12 - Internal Investigations

CONSEQUENCES OF FAILING TO ACT

PREPARING FOR THE INVESTIGATION

PRESERVING DOCUMENTARY AND ELECTRONIC INFORMATION

ASSEMBLING THE INVESTIGATIVE TEAM

INVESTIGATIVE PLAN

CONDUCTING INTERVIEWS

DETERMINING SYSTEMIC CORRUPTION AND FCPA VIOLATIONS

SELF-DISCLOSURE OF FCPA VIOLATIONS

COMPLIANCE EMERGENCY PREPAREDNESS KIT

NOTES

CHAPTER 13 - Past, Present, and Future of the FCPA

THE PAST

THE PRESENT

ON THE HORIZON

THE FUTURE

NOTES

APPENDIX - Opinion Procedure Releases

About the Authors

Index

Praise for Foreign Corrupt Practices Act Compliance Guidebook

“This book is a must for lawyers and any corporation that deals with global commerce. The chapter on Siemens shows how a large multinational can respond and reform under intense scrutiny. The Siemens chapter represents reform and transparency and will be seen as a model for a very long time.”

—Michael G. Oxley, Of Counsel, Baker & Hostetler LLP

“An excellent FCPA guidebook! The Biegelmans’ book makes it easy to understand the FCPA and includes fascinating case studies and interviews with compliance thought leaders. It should be required reading and a desktop reference for anyone committed to the fight against worldwide corruption or interested in creating a best practice anti-corruption compliance program within their organization.”

—Cynthia Cooper, CEO of The CooperGroup LLC and one ofTimemagazine’s Persons of the Year

“The FCPA Compliance Guidebook is an excellent and easy to use resource for companies doing business abroad and their lawyers. The book is full of practical guidance and compiles in one place an overview of the many issues a company and its counsel may face in effecting compliance and dealing with investigations. The book also provides a good overview of the law and lessons learned from many of the significant cases. A must read!”

—Karen A. Popp, Partner at Sidley Austin LLP, former federal prosecutor, and Associate White House Counsel to President Clinton

“As more organizations go global and the international lines of business blur, companies must understand their obligations under the Foreign Corrupt Practices Act. This book provides a highly relevant and invaluable guide for companies wishing to protect their assets and reputations from the menace of corruption. In addition to presenting a comprehensive discussion of the history, requirements, and importance of the FCPA, Martin and Daniel Biegelman offer insightful, in-depth examples and clear, practical guidance on compliance.”

—James D. Ratley, CFE, President, Association of Certified Fraud Examiners

“Everyone in the compliance community will find what they need in this great new resource. It demystifies the FCPA and what it requires. The writing is crisp and lively, the examples and case studies are vivid and succinct, and the advice is rock solid. This is the best overall presentation of the FCPA between two covers that I have ever seen.”

—Richard L. Cassin, Founding Partner, Cassin Law LLC and creator of the widely read FCPA Blog

“The Biegelmans’ FCPA Compliance Guidebook is a brilliant and crucial addition to FCPA literature. Any American company doing business overseas needs a copy. This will be a standard reference for many years.”

—Mark A. Kirsch, Co-Chair of Litigation, Gibson, Dunn & Crutcher LLP

“Martin and Daniel Biegelman have done it again. While the FCPA has been an issue for decades, it has taken center stage over the past few years and all signs point to it having an even greater impact on businesses going forward. The Biegelmans have built a comprehensive tool for all levels of interest—from the practitioner to the CEO, this is a book that should be mandatory reading for those touching international business.”

—Dan Wachtler, CEO, IPSA International, Inc.

“As the FCPA quickly becomes one of the world’s true International Laws, compliance is essential for corporate accountability and integrity. The FCPA is a critical component of a free market system that rewards hard-working, honest individuals and companies, and strongly pursues violators. The Biegelmans’ FCPA Compliance Guidebook isn’t just about a regulation; it’s about building a successful and compliant global economy.”

—Roy Snell, CEO, Society of Corporate Compliance and Ethics

“Martin, along with his son Daniel, have written the authoritative standard on the Foreign Corrupt Practices Act. It is a must read for Compliance or Ethics personnel looking to better understand this complex issue.”

—John E. McDermott, VP, Corporate Compliance Investigator, CA Inc.

“Foreign Corrupt Practices Act violations are the current focus of regulators, investigators, and prosecutors, here and abroad. This exhaustive text explores the legal nooks and crannies with exacting precision, but it’s most important contribution is the emphasis on compliance and prevention, areas that the authors know well. Through numerous illustrations of extraordinary crimes and splendid compliance and prevention techniques, the authors establish FCPA awareness and compliance as a sine qua non for doing business globally. A must-read for businesses wishing to avoid massive fines and/or imprisonment.”

—George E. Curtis, J.D., Executive Director of the Economic Crime Institute, Utica College

“Martin and Daniel Biegelmans’ work will go down in American corporate and financial lore as a comprehensive history of the series of train wrecks that have yielded the FCPA and its various progeny. It tells the fascinating story of how we got from the Lockheed disclosures of the mid-1970s to the hottest area of white collar practice today. It is required reading for those of us struggling to implement global compliance programs. Those unenlightened ones who remain committed to the dark side would also do well to read it, and take warning.”

—Keith Hennessee, Associate General Counsel, Halliburton Company

“This book is a great compilation of information about the FCPA and practical guide that would have been incredibly useful to me when I was asked to be responsible for FCPA Compliance related matters. It is a much needed resource and it will be extremely valuable as a desk reference for anyone involved in business and who is accountable for FCPA compliance.”

—Flora A. Francis, Counsel, Litigation, GE Oil & Gas

“Tackling corruption and insuring compliance with the Foreign Corrupt Practices Act makes this book a ‘must read’ for both current and future managers of today’s global corporations. Increased global anti-corruption laws and efforts demand that corporate compliance and training programs are in place - this guidebook provides the ‘how’ and the ‘why’! This book provides the ‘wake-up call’ and consequences of ‘failure to act’ that organizations can no longer ignore!”

—Joyce Barden, CPA, CBM, Senior Professor, DeVry University/Keller Graduate School of Management

Copyright © 2010 by John Wiley & Sons. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada.

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Library of Congress Cataloging-in-Publication Data

Biegelman, Martin T.

Foreign corrupt practices act compliance guidebook : protecting your organization from bribery and corruption / Martin T. Biegelman, Daniel R. Biegelman.

p. cm.

Includes index.

eISBN : 978-0-470-62244-5

1. Fraud-Prevention. 2. Bribery-Prevention. 3. International trade-Corrupt practices-Prevention. 4. Corporations-Corrupt practices-Prevention. 5. Compliance auditing. I. Biegelman, Daniel R. II. Title.

HV6691.B474 2010

658.4’7-dc22

2009047251

For Leonard Biegelman

Husband, father, grandfather, Navy veteran, and a very special and good man. His love and devotion, as well as his integrity and character, left an indelible mark on us.

Foreword

The biggest deterrent against unethical behavior is strong leadership. Controls alone do not do enough to create an ethical culture; strong leadership can make up for the absence of formal controls or policies, while weak leadership will amplify the effect of those absences. Nevertheless, controls are critical. Codes of conduct are important. Advice from companies that have failed to implement controls, test-run their controls, and investigate chinks in the armor are valuable lessons for companies and employees that want to make their company a great place to work.

Martin and Daniel have laid out those lessons in Foreign Corrupt Practices Act Compliance Guidebook. In the FCPA arena, fact is more compelling than fiction. Companies doing business outside U.S. shores have to constantly assess leadership, assess policies, and assess their reputation. Think about that for a second: Chief Executive Officers and Chairmen of the Board need to be concerned about the reputation their leaders are creating 12 time zones away at a facility that no executive leader of the company has ever planned to visit.

That is no easy task when you consider that companies are bigger, financially and in terms of headcount, than many developing countries. But companies enter into new markets and partnerships every day. The distributor agreement your team signed across the globe also brought along that agent’s reputation; both good and bad. Moreover, customers will view your company’s reputation through the behavior of the agent. Did your company do enough research into the ethical culture of the new partner? Does the familial relationship of the owner and current foreign government present a conflict of interest? How will success fees be calculated? These are all important questions which Martin and Daniel keenly delve into throughout the book and present practical experience from companies that have embedded “compliance programs” into their “business program” so that employees are speaking the same dialect regardless of their discipline or geography.

Most importantly, employees need to understand a company’s expectations for integrity and for transparency. If the objective is to build a sustainable business, integrity must be at the core of corporate behavior; otherwise you will have a nice glossy Code of Conduct, with matching posters throughout campus, perhaps a few employees whose individual integrity impacts their team but for the vast majority of employees, integrity will be a marketing buzzword with no substance or context. Management has to be committed to integrity in all business operations. The only way to build a compliance culture is for every team to embed compliance into their daily business activity. You cannot depend on compliance officers, HR, lawyers, auditors, or corporate security to build this culture—the culture is built by employees, it is built by managers. Martin and Daniel have laid the blueprint to help you build your company’s compliance program in this Guidebook.

Alfredo Avila Assistant General Counsel Business Conduct Office Monsanto Company December 2009

Preface

Watergate. The mere mention of the word invokes images and memories of a political scandal of huge proportion that brought down a president and left the man and his presidency disgraced. There were break-ins and burglaries, illegal wiretaps, slush funds, money laundering, hush money, and White House cover-ups, leading to the impeachment of Richard Nixon, and the indictment and conviction of his closest advisors and confidants. This was corruption at the highest levels of government. It severely rattled the American psyche and shook people’s faith in government. But there was some good that followed. One beneficial outcome of the Watergate scandal would become a weapon against corruption in the corporate suites: the enactment of the Foreign Corrupt Practices Act (FCPA) in 1977.

In addition to the large-scale illegal contributions to Nixon’s 1972 reelection campaign, the Watergate investigation revealed the existence of slush funds that corporations used for bribery of foreign government officials. The investigation found that this corruption and bribery to obtain and retain business was pervasive throughout corporate America. What’s more, there was nothing illegal about this hidden and seamy practice. The outrage of good and honest public officials spurred Congress to act and the FCPA became law.

Fast forward to today and the FCPA is one of the fastest growing areas of law and corporate enforcement in both the civil and criminal arenas. It is now a major concern of businesses, be they public or private, large or small, foreign or domestic. The FCPA is of even greater importance now due to the globalization of business and the U.S government’s commitment to enforcement. In short, the FCPA makes it a crime for a company in the United States, for U.S. citizens, or their agents, to obtain business by bribery of a government official of another country, or to conspire to do so from the United States, or for a publicly traded U.S. company to fail to record such a payment on the company books. The FCPA also impacts foreign companies that have business connections in the United States. The penalties for violating the FCPA can be severe.

There is a greater focus on corporate compliance and ethics than at any time in the past. The United States has also been joined by numerous other countries in the war on bribery and corruption and holding violators accountable. The fines and penalties for violators, both corporations and individuals, seem to get larger with each new case. All this makes a book on the FCPA both compelling and timely.

We have written about the FCPA in our prior books including Executive Roadmap to Fraud Prevention and Internal Control: Creating a Culture of Compliance and Building a World-Class Compliance Program: Best Practices and Strategies for Success. Our knowledge of the FCPA, the insidious nature of corruption, and the growing enforcement climate around anti-corruption and FCPA prosecution convinced us that a book dedicated to the subject was needed, and needed now.

This book provides an understanding of the critical importance of the FCPA in today’s global environment. Readers will learn about the business, financial, legal, and reputational risks associated with bribery and corruption. An in-depth review of the FCPA statute with explanations of the various elements and how it applies to business operations is included. Throughout the book are lists of non-compliance red flags, mitigating controls, best practices, as well as numerous case studies of FCPA violators. One chapter focuses on a company involved in one of the most serious and large-scale bribery investigations ever conducted. Its recovery from corruption provides lessons and program models. A second chapter details a company that faced an FCPA prosecution as a result of the corrupt activities of a relatively low-level employee outside the United States and how the company subsequently responded by building a world-class anti-corruption compliance program.

Another chapter focuses on a company under investigation for alleged FCPA violations and the unique circumstances it faces while waiting to learn its fate. A discussion of the worldwide hotspots of corruption is included as well as trends, court decisions, government opinions, and guidance. A feature of the book is detailed strategies and insights on implementing an effective FCPA compliance program. We continually reinforce the critical importance of compliance with policies and program examples. Throughout the book are compliance insights that spotlight program enhancements as well as interviews with anti-corruption thought leaders who provide best practices and recommendations. The Appendix provides an overview of key Department of Justice (DOJ) Opinion Procedure Releases for further FCPA guidance.

While we can never completely eliminate corrupt behavior from the corporate suites and the halls of government, knowledge and understanding of the issues are powerful weapons in attaining and maintaining prevention and compliance. As Eleanor Roosevelt said, it’s best to “learn from the mistakes of others.” Use the material in this book, including the FCPA violations and compliance failures of companies and individuals, as powerful lessons to embrace and incorporate in your business planning and operations as well as enterprise risk management.

Let’s not forget the growing impact of the FCPA as a weapon in the arsenal of federal prosecutors. As Seymour Glanzer, a former Watergate prosecutor, DOJ official, and current senior litigation and defense counsel has said, “Mail fraud, money laundering, and RICO were the darlings of federal prosecutors for many years. Now they’re in love with the FCPA. And rightfully so.”

Acknowledgments

With each book we write, the more we realize the arduous task it is to produce a definitive work that meets readers’ expectations. We could not accomplish that without the generous assistance and wise counsel of the many people we acknowledge here. To all of them, we say thank you for sharing your experiences, stories, materials, and thought leadership. We are in your debt.

A special note of thanks to Tim Burgard, our executive editor at John Wiley & Sons, who again gave us a unique writing opportunity. Tim supported us from the initial concept of a book on the FCPA through to the finished product. We also want to acknowledge Helen Cho, Stacey Rivera, and Dexter Gasque at Wiley who have been invaluable in helping us navigate through issues large and small in the production process. They are true professionals.

Our sincere thanks to those who provided ideas, content, interviews, and assistance: George Stamboulidis, Marjorie Doyle, Richard Cassin, Karen Popp, Mark Kirsch, Scott Moritz, Jay Perlman, Joe Spinelli, David Seide, Seymour Glanzer, Leslie McCarthy, James Fitzmaurice, Gareth Elliot, Michael Horowitz, Dan Wachtler, Dennis Lormel, Jane Wexton, Russell Mokhiber, Ed Rial, and Wendy Schmidt.

Our deep appreciation to Dr. Andreas Pohlmann, Joel Kirsch, and Ariel Ramirez from Siemens and Alfredo Avila and Pete Sullivan from Monsanto Company who graciously gave us access to their world-class compliance programs so we could profile them in this book.

A special thank you to Amanda Massucci, Brian Loughman, Christopher Richardson, Ted Acosta, and Paul Harris from Ernst & Young’s Fraud Investigation and Dispute Services Practice. They provided us with their rich knowledge and experience in FCPA and anti-corruption compliance and we are extremely grateful for their guidance.

When we wanted someone to read our draft manuscript and give us honest feedback and ideas, we again turned to our dear friend, DeWayn Marzagalli. DeWayn, a former federal agent extraordinaire, provided the constructive and thoughtful comments we needed. Writing a book without DeWayn’s keen eye and recommendations would not seem right to us. As always, he offered advice and encouragement that was much needed and appreciated.

Although this work is solely ours and does not reflect the views or opinions of Microsoft Corporation or Baker Hostetler, we would like to thank our employers for supporting us in writing this book.

And, last but not least, our gratitude to Lynn, as wife and mother, she was indispensable as she spent countless hours reviewing the manuscript and providing insightful feedback. Lynn’s constant encouragement, wisdom, and attention to detail were essential to our writing. Her patience, as we again spent all our free time engrossed in completing this book, is exceptional and much appreciated.

CHAPTER 1

Bribery, Corruption, and the Foreign Corrupt Practices Act

In the movie Syriana—a politically charged story of greed, self-interest, betrayal, and corruption in the oil and gas industry—one of the characters angrily learns he is under investigation by the U.S. Department of Justice (DOJ) for bribery to obtain drilling rights in Kazakhstan. “Corruption charges! Corruption? Corruption is government intrusion into market efficiencies in the form of regulations. . . . We have laws against it precisely so we can get away with it. Corruption is our protection. Corruption keeps us safe and warm. Corruption is why you and I are prancing around in here instead of fighting over scraps of meat out in the streets. Corruption is why we win.” These contemptuous comments are what one would expect from people who have been caught up in bribery probes and prosecutions under the Foreign Corrupt Practices Act (FCPA).

The FCPA has long been an available weapon in the arsenal of federal prosecutors in the United States. Yet, the specter of the FCPA was one infrequently seen, so much so that companies and their employees came to believe they had nothing to fear. But how the times have changed. Now, the mere utterance of the acronym FCPA is enough to instill deep concern, and even fear, in corporate suites throughout the world. The FCPA is the U.S. law that makes bribery of foreign officials to obtain or retain business and the failure to maintain accurate books and records, as well as related internal controls, a very serious crime. The Act’s provisions significantly impact business organizations through criminal and civil prosecutions and the collateral damage that comes with government enforcement of anticorruption laws.

If there is a recent case that exemplifies the strong stance that government authorities are taking in pursuing FCPA violations, it is the prosecution of Control Components, Inc. (CCI). CCI is a California corporation that designs and manufactures control valves for the nuclear, oil and gas, and power generation industries throughout the world. Between 1998 and 2007, CCI, through its officers, employees, and agents, made more than 200 corrupt payments to employees of state-owned enterprises and private companies in 36 countries. These countries included China, Korea, Malaysia, and the United Arab Emirates. The bribes totaled $6.85 million and earned CCI $46.5 million in net profits.

Prosecutors used a variety of tactics to unravel the pervasive conspiracy, a move that is indicative of the new approach to fighting FCPA violations. Both the corporation and individuals were prosecuted. In fact, the eight CCI defendants is the single largest number of individual defendants in an FCPA case. There was cross-border law enforcement cooperation resulting in the prosecution of a UK official implicated in the bribery probe. Both government corruption and private company bribery were charged in this case. The Travel Act was used to charge commercial bribery. The Travel Act prohibits using interstate or foreign commerce to promote unlawful activity including bribery and corruption in violation of state law.