Posts Tagged ‘Foreign Corrupt Practices Act’

Thank goodness this sort of thing doesn’t happen in politics or the media

“The Securities and Exchange Commission today announced that BNY Mellon has agreed to pay $14.8 million to settle charges that it violated the Foreign Corrupt Practices Act (FCPA) by providing valuable student internships to family members of foreign government officials affiliated with a Middle Eastern sovereign wealth fund.” [SEC press release, WSJ] The SEC said at least three offspring from influential families lacked “the requisite academic or professional credentials” for the internships and proved to be “less than exemplary employees.” [Business Insider] While publicly shaming the bank, the commission did not see fit to name the foreign country involved. Similar probes on intern hiring have been aimed at other big financial institutions including J.P. Morgan, accused of hiring the children of Chinese officials [Reuters]

Banking and finance roundup

  • In banking and FCPA cases, targets of DOJ prosecution are disproportionately firms domiciled abroad, and other countries do notice that [Jesse Eisinger, NYT “DealBook”]
  • “Los Angeles’ Confused Suit against Mortgage Lenders” [Mark Calabria, Cato] Providence also using disparate impact suits in hopes of making banks pay for its housing failures [Funnell]
  • Podcast discussion on Operation Chokepoint with Charles J. Cooper, Iain Murray, and Todd J. Zywicki [Federalist Society, earlier]
  • New round of suits against banks based on ATMs’ imperfect wheelchair accessibility [ABA Journal, earlier here]
  • Walgreen’s could save billions in taxes if it moved to Switzerland from U.S. Whose fault if anyone’s is that? [Tax Foundation]
  • “Left unmentioned: how fed regulation and trial lawyers deter banks from protecting themselves with overdraft fees.” [@tedfrank on NYT report about banks’ use of databases to turn down business from persons with records of overdrawing accounts, a practice that now itself is being targeted for regulation]
  • Scheme to seize mortgages through eminent domain stalling as cities decline to come on board [Kevin Funnell]

Police and prosecution roundup

February 3 roundup

  • “Class counsel in Facebook ‘Sponsored Stories’ case seeks to impose $32,000 appeal bond on class-action objectors” [Public Citizen, Center for Class Action Fairness]
  • The best piece on bar fight litigation I’ve ever read [Burt Likko, Ordinary Gentlemen]
  • Casino mogul Adelson campaigns to suppress online gaming; is your state attorney general among those who’ve signed on? [PPA, The Hill]
  • Foreign Corrupt Practices Act (FCPA): “Anyone who values the rule of law should be alarmed by the ADM enforcement action.” [Mike Koehler]
  • New FMCSA rules on length of workweek make life difficult for long-haul truckers [Betsy Morris, WSJ via Lee Habeeb and Mike Leven, National Review and more]
  • “It takes a remarkable amount of nerve to cobble together publicly available facts, claim you’ve uncovered a fraud on the government, and file a lawsuit from which you could earn substantial financial benefits.” [Richard Samp, WLF] Whistleblower-law lobby tries to get its business model established in West Virginia [W.V. Record]
  • Pittsburgh readers, hope to see you tomorrow at Duquesne [law school Federalist Society]

Coming soon: Washington, D.C. starts investigating itself

“News crossed this weekend that U.S. bank JP Morgan is being investigated by U.S. regulators for hiring well-connected people in China. Specifically, the bank is said to be under investigation for hiring two bankers whose fathers ran big Chinese companies that later hired JP Morgan for several assignments.” [Henry Blodget, Business Insider]

Using NSA spy data to go after…FCPA violators?

The implications are mind-boggling [Houston Chronicle/Connecticut Post via NACDL via Americans for Forfeiture Reform, earlier] On paper, NSA is supposed to turn over spy-collected data only if evidence of serious unrelated crime turns up while investigating terrorist threats or other specified matters. However, as Reuters shows in an important new investigation, in drug investigations (and probably other types as well) “law enforcement agents have been directed to conceal how such investigations truly begin — not only from defense lawyers but also sometimes from prosecutors and judges” Thus the common little white lie about how such-and-such was discovered “during a routine traffic stop,” when in fact the traffic stop was intended to intercept something or someone known by previous investigation to be aboard the vehicle. With the origins of investigation routinely “phonied up” in this way, however, it becomes virtually impossible to know how many handoffs of spy information fall into gray areas beyond the clear intent of the authorizing law. [Julian Sanchez, Cato] Our coverage of the Foreign Corrupt Practices Act is here; earlier on surveillance here.

August 2 roundup

Police and prosecution roundup

  • Arkansas: “‘Corruption of Blood’ Amendment Withdrawn After House Supporter Is Reminded What Century It Is” [Above the Law]
  • George Zimmerman-Trayvon Martin case heads for trial [TalkLeft, Doug Mataconis, and Richard Hornsby via Megan McArdle on evidentiary standards, earlier]
  • Is New Hampshire citizens’ group harassing town parking meter enforcers, or monitoring their work? [Union Leader, ABA Journal, Reason]
  • New York politicos quarrel over Hank Greenberg suit, overbroad Martin Act is to blame [Bainbridge]
  • Enforcement grabs higher-ups in Ralph Lauren Argentine customs bribery case [FCPA Professor, earlier]
  • Who stole the tarts? “Mom has son arrested for stealing Pop-Tarts” [Lowering the Bar; Charlotte, N.C.] Tip from Georgia cops: avoid situations where you might have to cling to hood of moving car [same]
  • “Omaha officers told: Don’t interfere with citizens’ right to record police activity” [Omaha World-Herald via @radleybalko (“Good work, Omaha.”)]

You were wrong to pay out that money. Now disgorge it.

On Ralph Lauren’s agreement with prosecutors to settle charges under the Foreign Corrupt Practices Act that its agents improperly bribed officials in Argentina to allow goods to move through trade channels: “Disgorge is a curious description. The $593,000 is the amount they paid out in bribes, not the amount they took in. Disgorge usually refers to the fruits of crime, but instead refers here to the perverse perspective of our government in keeping American corporations pure as the driven snow while minor warlords elsewhere demand their piece of the pie. Whether it’s money in or out, gained or lost, or even neither existing nor realized, it’s all money the government demands be disgorged.” [Scott Greenfield] More on the case: Lawrence Cunningham, FCPA Professor.