Law Commons^™

Conspiracy Liability And The Fcpa: The Second Circuit's Rare Interpretation Of The Fcpa In United States V. Hoskins And Its Potential Implications, Morgan R. Knudtsen

William & Mary Business Law Review

The scope of the Foreign Corrupt Practices Act (FCPA) is inherently difficult to ascertain. Over time, the SEC and DOJ have privately settled claims under the FCPA, leaving most interpretation to government agencies. Though agency interpretation happens frequently, there has been little interpretation over major questions such as who is subject to the FCPA’s jurisdiction and how far that jurisdiction extends. United States v. Hoskins, which was decided in August 2018, involved the FCPA, conspiracy, and foreign corporate officials. The Second Circuit in its decision subsequently limited the scope of the FCPA, holding that liability cannot extend to foreign …

Voluntary Disclosure Fostering Overenforcement And Overcriminalization Of The Fcpa, Karen E. Woody

Karen Woody

Professor Peter Reilly’s article, Incentivizing Corporate America to Eradicate Transnational Bribery Worldwide: Federal Transparency and Voluntary Disclosure Under the Foreign Corrupt Practices Act, 67 Fla. L. Rev. 1683 (2015), challenges the notion that voluntary disclosure of potential Foreign Corrupt Practices Act (FCPA) violations to the government is always the best course of action for a company. In a world where whistleblowers can receive a bounty for information provided to the Securities and Exchange Commission (SEC),2 self-reporting is a critical, high-pressure decision that each company must undertake when faced with potential FCPA liability.

This Article takes a broader look at …

No Smoke And No Fire: The Rise Of Internal Controls Absent Anti-Bribery Violations In Fcpa Enforcement, Karen E. Woody

Karen Woody

The Foreign Corrupt Practices Act (FCPA) prohibits bribery of foreign public officials in order to obtain or retain business. It is, for all intents and purposes, an anti-bribery statute. To detect bribery, the FCPA contains accounting provisions related to bookkeeping and internal controls. The books and records provision requires issuers to make and maintain accurate books, records, and accounts; likewise, the internal controls provision requires that issuers devise and maintain reasonable internal accounting controls aimed at preventing and detecting FCPA violations. If one considers the analogy that bribery is the “fire” in FCPA enforcement actions, and books and records violations …

Fcpa Enforcement Against U.S. And Non-U.S. Companies, Michael S. Diamant, Christopher W.H. Sullivan, Jason H. Smith

Michigan Business & Entrepreneurial Law Review

This Article explores how U.S. authorities have enforced the FCPA against non-U.S. companies and tests the perception that the FCPA disproportionately impacts U.S. businesses. After briefly discussing the FCPA, its enforcement, and its reach, this Article examines corporate FCPA enforcement activity since the statute’s enactment in 1977. It finds that foreign firms have actually fared worse under the FCPA despite the fact that DOJ and the SEC have brought more enforcement actions against domestic companies in absolute terms. The average cost of resolving an FCPA enforcement action to non-U.S. corporations of resolving an FCPA enforcement action has been more than …

Equitable Relief For Private Rico Plaintiffs: Using Donziger To Remedy Courthouse Corruption, Anna Hanke

Journal of Law and Policy

In Chevron Corp. v. Steven Donziger, the Southern District of New York granted Chevron an injunction against Donziger under the Racketeer Influenced and Corrupt Organizations (RICO) Act, preventing the enforcement of an Ecuadorean judgment against it in the United States. This Note discusses the circuit court split on whether injunctive relief may be granted in a civil RICO suit, arguing that injunctive relief is an available remedy within the statute’s plain meaning, legislative intent, and evolving jurisprudence of civil RICO. The Note applies the Donziger interpretation of RICO to a case of a similarly corrupted judgment, Caperton v. A.T. Massey …

No Smoke And No Fire: The Rise Of Internal Controls Absent Anti-Bribery Violations In Fcpa Enforcement, Karen E. Woody

Scholarly Articles

The Foreign Corrupt Practices Act (FCPA) prohibits bribery of foreign public officials in order to obtain or retain business. It is, for all intents and purposes, an anti-bribery statute. To detect bribery, the FCPA contains accounting provisions related to bookkeeping and internal controls. The books and records provision requires issuers to make and maintain accurate books, records, and accounts; likewise, the internal controls provision requires that issuers devise and maintain reasonable internal accounting controls aimed at preventing and detecting FCPA violations. If one considers the analogy that bribery is the “fire” in FCPA enforcement actions, and books and records violations …

Equitable Relief For Private Rico Plaintiffs: Using Donziger To Remedy Courthouse Corruption, Anna Hanke

Journal of Law and Policy

In Chevron Corp. v. Steven Donziger, the Southern District of New York granted Chevron an injunction against Donziger under the Racketeer Influenced and Corrupt Organizations (RICO) Act, preventing the enforcement of an Ecuadorean judgment against it in the United States. This Note discusses the circuit court split on whether injunctive relief may be granted in a civil RICO suit, arguing that injunctive relief is an available remedy within the statute’s plain meaning, legislative intent, and evolving jurisprudence of civil RICO. The Note applies the Donziger interpretation of RICO to a case of a similarly corrupted judgment, Caperton v. A.T. Massey …

Private Actors And Public Corruption: Why Courts Should Adopt A Broad Interpretation Of The Hobbs Act, Megan Demarco

Michigan Law Review

Federal prosecutors routinely charge public officials with “extortion under color of official right” under a public-corruption statute called the Hobbs Act. To be prosecuted under the Hobbs Act, a public official must promise official action in return for a bribe or kickback. The public official, however, does not need to have actual authority over that official action. As long as the victim reasonably believed that the public official could deliver or influence government action, the public official violated the Hobbs Act. Private citizens also solicit bribes in return for influencing official action. Yet most courts do not think the Hobbs …

Voluntary Disclosure Fostering Overenforcement And Overcriminalization Of The Fcpa, Karen E. Woody

Scholarly Articles

Professor Peter Reilly’s article, Incentivizing Corporate America to Eradicate Transnational Bribery Worldwide: Federal Transparency and Voluntary Disclosure Under the Foreign Corrupt Practices Act, 67 Fla. L. Rev. 1683 (2015), challenges the notion that voluntary disclosure of potential Foreign Corrupt Practices Act (FCPA) violations to the government is always the best course of action for a company. In a world where whistleblowers can receive a bounty for information provided to the Securities and Exchange Commission (SEC),2 self-reporting is a critical, high-pressure decision that each company must undertake when faced with potential FCPA liability.

This Article takes a broader look at …

The Good American Legislator: Some Legal Process Perspectives And Possiblilities, Robert F. Blomquist

Akron Law Review

In this Article, I intend to sketch some theoretical attributes of the good American legislator...In Part I of the Article, I will discuss the original legal process jurisprudence of the 1940s and 1950s, and will attempt to tease out of this body of thought concepts that bear on defining the good American legislator. In Part II, I turn, successively, to the three offshoots of the original legal process material, written over the last twenty years: process formalists, process progressives and process pragmatists. I do this in order to uncover insights that might further our understanding of the good American legislator. …

Recent Changes In U.S. And U.K. Overseas Anti-Corruption Enforcement Under The Fcpa And The U.K. Bribery Law: Private Equity Compliance, Isaac A. Binkovitz

Michigan Business & Entrepreneurial Law Review

The following discussion provides a preliminary guide for those tasked with steering private equity firms through the shifting obstacle course of overseas anti-corruption compliance. Section I briefly reviews the centrality of overseas anti-corruption enforcement and its role in creating a more hospitable business climate in emerging markets. Section I also examines the American and British enforcement regimes in general before analyzing the most recent changes–specifically, changes as to the scope of liability and expansion of their jurisdiction. This section is designed to help determine whether investments or acquisitions fall within the purview of either enforcement regime. Section II discusses various …

Reviving The Federal Crime Of Gratuities, Sarah N. Welling

Law Faculty Scholarly Articles

The federal crime of gratuities prohibits people from giving gifts to federal public officials if the gift is tied to an official act. Both the donor and the donee are liable. The gratuities crime is dysfunctional in two main ways. It is overinclusive in that it covers conduct indistinguishable from bribery. It is underinclusive in that it does not cover conduct that is clearly dangerous: gifts to public officials because of their positions that are not tied to a particular official act.

This Article argues that Congress should extend the crime of gratuities to cover gifts because of an official’s …

The Gratuities Debate And Campaign Reform – How Strong Is The Link?, George D. Brown

George D. Brown

The federal gratuities statute, 18 USC § 201(c), continues to be a source of confusion and contention. The confusion stems largely from problems of draftsmanship within the statute, as well as uncertainty concerning the relationship of the gratuities offense to bribery. Both offenses are contained in the same statute; the former is often seen as a lesser-included offense variety of the latter. The controversy stems from broader concerns about whether the receipt of gratuities by public officials, even from those they regulate, should be a crime. The argument that such conduct should not be criminalized can be traced to, and …

Skilling: More Blind Monks Examining The Elephant, Julie R. O'Sullivan

Georgetown Law Faculty Publications and Other Works

Most academics and practitioners with whom the author has discussed the result in Skilling v. United States believe that it is a sensible decision. That is, the Supreme Court did the best it could to limit the reach of 18 U.S.C. § 1346, which all nine justices apparently believed—correctly—was, on its face, unconstitutionally vague. Congress responded quickly and with little consideration with the supremely under-defined § 1346. In the over twenty years since the statute's enactment, the Courts of Appeals have been unable to come up with any unified limiting principles to contain its reach. The Skilling Court, evidently reluctant …

Balancing Judicial Cognizance And Caution: Whether Transnational Corporations Are Liable For Foreign Bribery Under The Alien Tort Statute, Matt A. Vega

Michigan Journal of International Law

In the process of applying the ATS to foreign bribery, this Article will examine several unresolved issues surrounding this statutory grant. It will seek to (1) determine what constitutes a "violation of the law of nations," (2) refute the proposition that private defendants may be prosecuted under the ATS for only the most shocking and egregious jus cogens violations, (3) determine when and to what extent state action is required in ATS litigation, and (4) examine the limitations of the fundamental principles of international law on ATS litigation.

The Foreign Corrupt Practices Act, Sec Disgorgement Of Profits, And The Evolving International Bribery Regime: Weighing Proportionality, Retribution, And Deterrence, David C. Weiss

Michigan Journal of International Law

This Note uses examples such as Titan Corp. to support the argument that there are reasons to question the United States' increasing reliance on disgorgement to enforce the FCPA. Despite obvious deterrence benefits, the SEC's quest for disgorgement of ill-gotten gains raises significant questions regarding extraterritoriality, proportionality, and evidentiary uncertainty. This Note looks to the history of the FCPA and both international anti-bribery agreements and foreign statutes implementing those agreements in arguing that U.S. and foreign regulators need to create a more certain, predictable enforcement climate as the number of foreign bribery enforcement actions continue to explode.

Are Extraterritorial Restrictions On Bribery A Viable Policy Goal Under The Global Conditions Of The Late Twentieth Century? Increasing Global Security By Controlling Transnational Bribery, Philip M. Nichols

Michigan Journal of International Law

This paper argues that global security can no longer be evaluated in the realist terms of the sovereignty of nations, and that global insecurity does not arise merely from a handful of relatively straightforward issues. As an analytical tool, this paper turns instead to the concept of "complex interdependence" put forward by Robert Keohane and Joseph Nye. This paper then demonstrates how transnational bribery damages the quality of transnational relationships, thus endangering global security. The paper concludes by examining empirical observations. Empirically, transnational bribery has contributed significantly to global instability. On the other hand, no empirical observations suggest that extraterritorial …

The Foreign Corrupt Practices Act As A Threat To Global Harmony, Steven R. Salbu

Michigan Journal of International Law

Focusing primarily on the pragmatic and moral perils of cultural imperialism, I also alluded very briefly to a "political peril" that arises from the FCPA. This peril consists of the added risk of cross-national hostility that is attributable to officious and overreaching legislation across national borders. This article will examine the political hazard in greater detail, explaining why the proliferation of FCPA-style legislation unjustifiably increases the threat to global harmony.

Policing Illicit U.S. Business Actions Overseas, Paula Stern, Alexander W. Koff

Michigan Journal of International Law

Review of The Foreign Corrupt Practices Act: Coping with Corruption in Transitional Economies by Jeffrey P. Bialos & Gregory Husisian

The Emerging Role Of The Quid Pro Quo Requirement In Public Corruption .Prosecutions Under The Hobbs Act, Peter D. Hardy

University of Michigan Journal of Law Reform

This Note discusses the quid pro quo requirement under the Hobbs Act, a federal criminal statute which applies to bribery by public officials. The author first describes two recent decisions by the Supreme Court, McCormick v. United States and Evans v. United States, which established slightly different versions of a quid pro quo requirement in public corruption prosecutions under the Hobbs Act. The author then explains that the lower federal courts interpreting McCormick and Evans have molded the quid pro quo requirement so that a prosecutor must prove in all public corruption cases under the Hobbs Act that the …

The Federal Bribery Statute: An Argument For Cautious Revision, Susan Daunhauer Phillips

Kentucky Law Journal

No abstract provided.

Corruption And The Foreign Corrupt Practices Act Of 1977, Fredric Bryan Lesser

University of Michigan Journal of Law Reform

This article first discusses the business activities and competing interests which prompted congressional action. Part II analyzes the FCPA and attempts to solve the ambiguities inherent in the criminalization provisions, thereby clarifying which activities are proscribed by the FCPA and what is meant by the Act's corruption requirement. Finally, Part III examines the possibilities for multinational agreements prohibiting bribery.

Bribery And Brokerage: An Analysis Of Bribery In Domestic And Foreign Commerce Under Section 2 ( C ) Of The Robinson-Patman Act, Michigan Law Review

Michigan Law Review

This Note first analyzes the substantive and jurisdictional criteria of section 2(c) to evaluate the possible and the desirable scope of its applicability to commercial bribery. The Note next asks whether this statute reaches bribery of domestic and foreign government officials and concludes that where the requirements of section 2(c) are otherwise met and where the person accepting the bribe is acting administratively rather than politically, the statute could be applied to bribery of agents of domestic governments. However, a wholesale application of section 2( c) to bribery of foreign government agents would leave American competitors in foreign commerce defenseless …

Penalizing Bribery Of Foreign Officials Through The Tax Laws: A Case For Repealing Section 162 (C)(1), Christopher Alan Lewis

University of Michigan Journal of Law Reform

Most commentary on these congressional attempts to use tax laws to control the ethics of overseas enterprises has centered either on the effectiveness of these provisions or on the burdens and difficulties involved with their implementation. This article, while discussing these issues, is concerned primarily with the conceptual justifications and the direct economic effects of these tax provisions. The article contends that section 162(c)(1) and the pertinent provisions of the Tax Reform Act of 1976 are disguised penalties which often operate arbitrarily and unfairly and concludes that they should be repealed in favor of more equitable and effective deterrents.

Foreign Bribes And The Securities Acts' Disclosure Requirements, Michigan Law Review

Michigan Law Review

The Securities Act of 1933 and the Securities Exchange Act of 1934 require most major corporations to disclose to investors all material information concerning company operations. Although they were not intended to regulate the conduct of business, these disclosure obligations can have a deterrent effect upon improper corporate activities. The recent revelation that a significant number of corporations have been making bribes and similar payments abroad has created interest in the feasibility of employing the disclosure requirements to curtail this practice. This Note will show that, despite recent pressures for change, the Securities and Exchange Commission has continued to view …

Criminal Law

Indiana Law Journal

Indiana Legislation, 1947