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So your probably reading this Civil Investigative Demand about Foreign Corrupt Practices Act violations and your stomach is in knots. Maybe a competitor reported your overseas business practices. Maybe a whistleblower claimed you bribed foreign officials. Or maybe your just caught up in there latest international corruption sweep. Look, we get it. Your ABSOLUTELY TERRIFIED. And you should be! Because FCPA violations carry criminal fines up to $25 MILLION and executives face 5 YEARS in federal prison!
Let me explain the international nightmare your facing. The SEC and DOJ jointly enforce the FCPA, which means your getting attacked from two directions simultaneously! The FCPA prohibits bribing foreign officials, but its interpreted so broadly that normal international business becomes criminal!
Here’s what’s really scary – “foreign official” includes ANYONE working for state-owned enterprises! That businessman from China’s state oil company? Foreign official. The doctor at Brazil’s public hospital? Foreign official. Even employees of partially government-owned companies count! We’ve seen executives prosecuted for taking clients to lunch because the client worked for a company that was 20% government-owned!
The FCPA also has accounting provisions that criminalize poor recordkeeping. Didn’t properly document that business dinner in Dubai? Criminal violation! Mischaracterized a payment in your books? CRIMINAL VIOLATION! Your facing prison time for accounting errors that have nothing to do with actual bribery!
Sit down and prepare yourself because these numbers will destroy your entire company. FCPA penalties are absolutely devastating:
Companies face criminal fines up to $2 million per violation PLUS disgorgement of ALL profits from the entire business relationship! Got a $100 million contract through supposed bribery? Disgorge the ENTIRE $100 million plus interest! Civil penalties add another $16,000 per violation. And “per violation” means each payment, each false entry, each email!
But individuals? Your facing personal criminal fines up to $250,000 and 5 years in federal prison PER VIOLATION! Prison sentences average 30 months but we’ve seen executives get 10+ years when multiple counts stack up!
In 2019 alone, companies paid $2.6 BILLION in FCPA penalties! Ericsson paid $1.06 billion! Siemens paid $800 million! These aren’t slaps on the wrist – they’re company-destroying nuclear bombs!
Your probably wondering “How did they find out about my international business?” Let me tell you the common triggers that destroy companies:
Whistleblowers get massive rewards – up to 30% of penalties collected! That disgruntled employee who knows about your foreign dealings? They could make $10 million by reporting you! Competitors routinely report each other to eliminate competition in foreign markets.
Due diligence in M&A transactions exposes past violations. Buy a company with FCPA issues? Now YOUR liable! Routine audits uncover suspicious payments that trigger self-reporting obligations. Even random compliance reviews by your own company can force disclosure! We’ve seen companies destroy themselves by “doing the right thing” and self-reporting minor issues that exploded into criminal prosecutions!
This is where the FCPA becomes absolutely insane – EVERYTHING counts as potential bribery! DOJ’s Resource Guide shows incredibly broad interpretation:
Charitable donations to organizations connected to officials? Bribery! Hiring relatives of foreign officials? Bribery! Paying for travel or entertainment? Bribery! Even legitimate business expenses get twisted into criminal violations! We had a client prosecuted for paying a foreign official’s taxi fare to a meeting – $20 became a federal crime!
“Anything of value” is interpreted to include: jobs, internships, golf outings, restaurant meals, hotel stays, even LinkedIn recommendations! One executive got prosecuted for writing a college recommendation letter for an official’s daughter. A RECOMMENDATION LETTER became bribery!
Here’s something that’ll keep you up at night – your criminally liable for what third parties do on your behalf! Using agents, consultants, or partners doesn’t protect you!
That local consultant who “knows how business is done” in Nigeria? If they bribe someone, YOUR going to prison! Joint venture partner makes improper payments? Your liable! Even if you specifically told them not to bribe anyone, if you “should have known” (and prosecutors say you always should have known), your guilty!
The “willful blindness” doctrine means you can’t escape by not asking questions. Didn’t investigate why your consultant’s fees were so high? Willful blindness! Didn’t audit your distributor’s expenses? Willful blindness! We’ve seen executives imprisoned for bribes they genuinely didn’t know about because they “should have investigated more”!
ABSOLUTELY! And it happens FAST! FCPA investigations frequently result in criminal charges for both companies and individuals!
The typical progression is terrifying: CID seeking documents, parallel criminal investigation by DOJ Fraud Section, FBI raids on offices and homes, arrest of executives (often at airports!), asset freezes and seizures, indictment with multiple counts stacking decades of prison time!
We’ve seen C-suite executives go from boardrooms to handcuffs in under six months! One CEO was arrested at JFK Airport returning from a business trip – in front of his family! Another had FBI agents raid his daughter’s wedding reception to arrest him! The government loves making examples of FCPA violators!
This is the hidden killer in FCPA cases! The accounting provisions are strict liability – no proof of intent needed!
Mischaracterizing any payment in your books is criminal, even if no bribery occurred! Called a bribe a “consulting fee”? Books and records violation! Recorded entertainment expenses as “marketing”? VIOLATION! Even accurate but vague descriptions like “miscellaneous expenses” can be criminal!
Companies must maintain internal controls to prevent violations. System fails? Criminal liability! We’ve seen CFOs imprisoned because there accounting systems didn’t catch improper payments by low-level employees in foreign subsidiaries. The CFO never knew about the payments but went to prison anyway!
Buckle up for YEARS of expensive hell! FCPA investigations are notoriously long and complex:
Initial CID response (60-90 days), document translations and foreign evidence gathering (6-12 months), employee interviews across multiple countries (12-18 months), forensic accounting review (12-24 months), parallel criminal investigation (running simultaneously), DOJ/SEC coordination and prosecution decision (6-12 months). Your looking at 3-5 years MINIMUM!
During this time, your international business is paralyzed! Foreign partners flee. Government contracts get cancelled. Banks freeze international transactions. Stock price crashes. Legal fees? Expect $5-10 MILLION for a serious FCPA defense! We’ve seen companies spend $50 million on legal fees and STILL get criminally prosecuted!
This is the ultimate trap! DOJ claims self-reporting brings leniency but look at reality:
Companies that self-report still pay hundreds of millions in penalties! They still get monitors imposed for years! Executives still go to prison! “Cooperation credit” might reduce your penalty from $500 million to $400 million – your still destroyed!
Even worse, self-reporting opens you up to qui tam lawsuits, shareholder litigation, and foreign prosecutions! We’ve seen companies self-report minor violations only to face criminal prosecution in multiple countries. One client self-reported $50,000 in questionable payments and ended up paying $300 million in global penalties!
Look, we’re not your typical white-collar defense firm that’s never left the country. We specialize in international corruption defense because FCPA cases require understanding of both U.S. law and foreign business practices.
We know how DOJ and SEC coordinate FCPA prosecutions and there pressure points. We understand cultural business norms that prosecutors mischaracterize as corruption. We can challenge there interpretations of “foreign official” and “anything of value.” Most importantly, we know how to prevent accounting errors from becoming criminal charges!
Other firms tell you to cooperate fully and hope for leniency. That’s EXACTLY how companies pay billions and executives go to prison! We fight strategically, challenging the government’s cultural ignorance and forcing them to prove actual corrupt intent, not just different business practices!
Call us RIGHT NOW at 212-300-5196
FCPA investigations destroy companies overnight!
International defense experience – Former DOJ prosecutors – Available 24/7!
Don’t wait another second! FCPA investigations move at lightning speed once DOJ decides to prosecute. Your foreign partners are probably already cooperating. Your employees are being approached by FBI agents. The walls are closing in from every direction!
Remember – the FCPA is the government’s favorite tool for destroying international businesses. One questionable payment can trigger billions in penalties and decades in prison. You need someone who understands both international business AND criminal defense. Call us NOW before that business dinner in Shanghai becomes a federal felony!
Very diligent, organized associates; got my case dismissed. Hard working attorneys who can put up with your anxiousness. I was accused of robbing a gemstone dealer. Definitely A law group that lays out all possible options and best alternative routes. Recommended for sure.
- ROBIN, GUN CHARGES ROBIN
NJ CRIMINAL DEFENSE ATTORNEYS