FCPA Update — the government’s $48m ATM withdrawal: is it time to start sweating again?
On 22 October, Diebold, an Ohio manufacturer of ATMs and bank security systems that is listed on the NYSE, entered into a deferred prosecution agreement with the US Department of Justice and a settlement with the US Securities and Exchange Commission (SEC), agreeing to a $25.2m (£16m) fine and an 18-month monitorship as part of its deferred prosecution agreement and $22.9m in disgorgement and prejudgment interest as part of its SEC settlement.
The Information and the Complaint alleged that Diebold conferred approximately $1.75m in improper travel, entertainment and gifts upon ‘foreign officials’ between 2005 and 2010 in China and Indonesia and an additional approximately $1.2m in bribes to private persons in Russia and the Ukraine during the same period, in violation of the Foreign Corrupt Practices Act’s (FCPA’s) books and records and internal controls provisions.
Although there are significant aggravating factors that might explain imposing $48m in penalties and disgorgement on a company that voluntarily disclosed what are, unfortunately, common improprieties in China, combined with wholly unrelated commercial bribery in Russia, the size of the financial resolution — apart from the substantial burdens of the monitorship — raises questions about future enforcement of the FCPA, as well as the incentives for companies to self-report…
If you are registered and logged in to the site, click on the link below to read the rest of the Debevoise & Plimpton briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from The Lawyer
Briefings from Debevoise & Plimpton
This client update focuses on the examination priorities that are most relevant to investment advisers to private equity and hedge funds.
Debevoise & Plimption has published its FCPA Update for January 2013. The lead article concerns anti-corruption compliance in 2013.
Analysis from The Lawyer
Shell legal director Peter Rees is switching litigation control away from external counsel to a unified global team of in-housers