The Top Foreign Corrupt Practice Act (FCPA) Cases in 2016

March 30, 2017 Chris Doxey

An article dated February 25, 2017 in the Whistleblower News Review states that 2016 set new records for Foreign Corrupt Practices Act (FCPA) enforcement, with 27 companies paying over $2.48 billion in fines for 2016, the most significant Foreign Corrupt Practices Act.

Chris Doxey presents the top FCPA cases of 2016

What is the Foreign Corrupt Practices Act (FCPA)?

The Foreign Corrupt Practices Act (FCPA) is a federal law enacted in 1977. Part of the law requires accounting transparency and record keeping procedures as stated under the Securities Exchange Act of 1934. The FPCA is enforced by both the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC).

The FCPA also has clear restrictions against the bribery of foreign officials. Foreign officials are defined differently in specific countries. The FCPA, then, defines a foreign official as: "any officer or employee of a foreign government or any department, agency, or instrumentality thereof, or of a public international organization, or any person acting in an official capacity for or on behalf of any such government or department, agency, or instrumentality, or for or on behalf of any such public international organization.”

The Top 10 FCPA violations of 2016

According to Whistleblower News Review, the top 10 FCPA violations of 2016 are listed below in order of magnitude:

FCPA Case Amount Levied in Fines
1. VimpelCom Limited and its Uzbek subsidiary, Unitel LLC $795M
2. Teva Pharmaceuticals Industries Ltd. $519M
3. Odebrecht SA and Braskem SA $419.8M
4. Och-Ziff Capital Management Group LLC $412.1M
5. VimpelCom Ltd. $397.6M
6. JPMorgan Chase & Co. and a Hong Kong Subsidiar $264M
7. Embraer SA $205.5M
8. General Cable Corporation $75.75M
9. PTC Inc. $28M
10. Novartis AG $25M

 

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About the Author

Chris Doxey

Chris Doxey, CAPP, CCSA, CICA is an independent management consultant providing Internal Controls and Business Process Best Practice Solutions. She has extensive experience in procurement, accounts payable, internal auditing, internal controls, Sarbanes-Oxley compliance, payroll, logistics, financial systems strategy, and financial integration at Digital, Compaq, Hewlett Packard, MCI, APEX Analytix, and Business Strategy, Inc. She was recruited to assist MCI (formally WorldCom) recover from their internal control challenges. She has a bachelor's degree in English, a bachelor's in accounting, a master's in business administration, and a graduate certificate in project management. Chris has written numerous articles and published two handbooks: AP Leadership Skills and Implementing a Controls Self Assessment Program for Your Accounts Payable Department.

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