A company’s cooperation and remediation efforts recently helped it avoid prosecution for violations of the Foreign Corrupt Practices Act, although it will have to disgorge $17.2 million in profits from the violations.
According to a Department of Justice letter, a DOJ investigation found evidence that over more than 15 years employees and agents of the company’s U.S. and Germany subsidiaries (prior to its acquisition of them) paid millions of dollars to a China-based business consultant who was a close relative of a then-senior Chinese government officials. These payments were designed to obtain contracts with the Chinese government.
However, the DOJ said it has declined prosecution of this matter based on a number of factors, including the company’s timely and voluntary self-disclosure of the conduct, full and proactive cooperation, and timely and full remediation, including efforts to enhance its anti-corruption training and compliance program. The DOJ also acknowledged that the misconduct had ceased before the company acquired the subsidiaries and was identified through post-acquisition due diligence.
For more information on the FCPA and how to ensure your company’s compliance, please contact attorney Kristine Pirnia at (202) 730-4964 or via email.
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