The Foreign Corrupt Practices Act (FCPA) prohibits bribery of foreign officials by U.S. and foreign companies listed on the U.S. securities exchange.  The FCPA also requires such companies to maintain accurate books and records.  Foreign Corrupt Practices Act Whistleblowers that properly report violations of the FCPA by a U.S. or foreign company listed on the U.S. securities exchanges can recover a large reward for exposing FCPA violations.  If you are aware of a significant Foreign Corrupt Practice Act  violation, please feel free to contact Foreign Corrupt Practices Act Whistleblower Reward Lawyer Jason Coomer via e-mail message or use our submission form 

 Foreign Corrupt Practices Act Whistleblower Rewards 

Foreign Corrupt Practices Act  Whistleblower Laws Apply to All Foreign and U.S. Companies Listed on the U.S. Securities Exchanges as well as their Subsidiaries, Joint Venture Partners, and Agents

The Foreign Corrupt Practices Act (FCPA) applies to “issuers” (U.S. and foreign companies listed on U.S. securities exchanges and their employees); “domestic concerns,” which run the gamut of business entities organized under U.S. laws or with their principal place of business in the United States; the officers, directors, employees, and agents of those U.S. business entities (irrespective of nationality); U.S. citizens; U.S. resident aliens; “any person,” including all foreign persons, who commit an act in furtherance of a foreign bribe while in the United States, and U.S. businesses and nationals acting abroad. A Company must require all of its affiliated companies and all of their employees to comply with the Foreign Corrupt Practices Act.

Foreign Corrupt Practices Act Prohibitions

The Foreign Corrupt Practices Act (FCPA) prohibits the offer or making of payments or giving anything of value, either directly or indirectly, to any foreign official, political party or political candidate, or public international organization to obtain or maintain business when the offer, payment or gift is intended to influence a desired action; induce an act in violation of a lawful duty; cause a person to refrain from acting in violation of a lawful duty; secure any improper advantage; or influence the decision of a government or instrumentality.  These prohibitions preclude payments were unlawful under the laws of the country in which payment was made; payments that are not legitimate expenses directly related to the promotion, demonstration or explanation of the company’s product or services; and payments that are not made in accordance with a contract between the company and a foreign entity.  These prohibitions also include third party actions where the company knows that a payment or a gift will be provided to a government official or agency for the purpose of obtaining a contract or business. 

Violations of the Foreign Corrupt Practices Act (FCPA) are particularly common when a new market is opening up because of the intense interaction with a foreign government during the opening of the market; in markets that are under heightened government scrutiny or regulation; in markets where foreign investors including U.S. businesses operate through foreign consultants and contractors; and in markets where foreign companies are acting through  partners in joint ventures.

International businesses and large corporations that are conducting business in a new market which is opening up; in markets that are under heightened government scrutiny or regulation; in markets where foreign investors operate through foreign consultants and contractors; and in markets where foreign companies are acting through  partners in joint ventures should have strong compliance departments and anti bribery policies fail to properly prohibit illegal kickbacks, bribery, and other violations of the Foreign Corrupt Practices Act.  These compliance departments and anti bribery policies should including strong and clear policies regarding suppliers in the supply chain and mandate that third party business partners such as agents, distributors and joint venture partners comply with the Foreign Corrupt Practices Act. 

 Foreign Corrupt Practices Act  Exceptions

Under the Foreign Corrupt Practices Act (FCPA), the only exception to the prohibition of making payments to do business in another country are qualified facilitating payments. Qualified facilitating payments made in accordance with local custom or to expedite or secure the performance of routine government action that the payor is entitled to receive, such as government action to obtain licenses or permits, process government papers such as visas and work orders, or obtain government provided services such as police protection, mail, power or phone services may be exempted from coverage by the FCPA.

Government Official Bribes by Country and Bribery of Government Public Officials by Country (Russian, Chinese, Mexican, Brazilian, and Indian Government Bribes Are Most Common)

Of the countries that the US does business, bribery of government officials and kickbacks to government officials appear to be most common in Russia, China, Mexico, Brazil, and India.  These countries appear to have long standing traditions of bribery of government officials and many corporations that are wanting to do business in these countries are willing to pay bribes to government officials or provide kickbacks to government officials.  These bribes and kickbacks to government officials can be to key high level political government officials as well as to low level government officials in key government offices.

The companies that are making bribes to Russian, Chinese, Mexican, Brazilian, and Indian government officials are becoming more likely to be found to have violated the Foreign Corrupt Practices Act and be subject to large SEC sanctions.  Whistleblowers that properly report illegal bribes and kickbacks to the government officials of these countries are eligible to receive large financial rewards including not only a portion of the amount of the bribe, but also a portion of the contract that was obtained through the illegal bribe or kickback.

Government Official Bribes by Region and Bribery of Government Officials by Region (Government Bribes in  Africa, The Middle East, Eastern Europe, and Asia Are Most Common)

In looking at different regions of the World, bribes to government officials are most common in Africa,  the Middle East, Eastern Europe, and Asia.  In doing business in these areas, some countries are more likely to offer illegal bribes and illegal kickbacks than others.  For example companies from India and South Africa appear to offer more illegal bribes to African government officials than companies from other countries.  Whereas in the Asia Pacific and Latin America regions, companies from China are more likely to pay bribes and offer illegal kickbacks to public officials.  Interestingly, Italian companies are the most likely companies to offer illegal bribes and kickbacks in Europe and the United States.

It should be kept in mind that these foreign companies that are offering illegal bribes to public officials, can be brought to justice under SEC bounty actions, if they are listed on the U.S. securities exchanges or have sufficient ties to the United States.  It is important the regulation of companies operating in different regions of the World be prevented from obtaining unfair advantages by bribing public officials or offering kickbacks to public officials.  These companies with long standing traditions of bribery of government officials and public officials, often have many violations of paying bribes and kickbacks to government officials at key high level political government offices as well as to low level government officials in key government offices.  By obtaining evidence of these bribes and properly reporting these illegal bribes and kickbacks, whistleblowers can not only prevent illegal acts, but make large financial recoveries.

The companies that are making bribes to the government officials in Russia, China, Mexico, Brazil and India are becoming more likely to be found to have violated the Foreign Corrupt Practices Act and be subject to large SEC sanctions.  Whistleblowers that properly report illegal bribes and kickbacks to the government officials of these countries are eligible to receive large financial rewards including not only a portion of the amount of the bribe, but also a portion of the contract that was obtained through the illegal bribe or kickback.

Government Official Bribes by Business Sector and Region, (Contract bribes to Government officials in the Public Works, Construction, Oil & Gas, Heavy Manufacturing, Mining, Pharmaceutical, and Health Care Industries Are Most Common)

In addition to specific countries and regions where government official bribery and public official kickbacks are more common, there are specific business sectors where  public official bribery and government official kickbacks are more common.  These more corrupt business sectors include Public Works, Construction, Oil & Gas, Heavy Manufacturing, Mining, Pharmaceuticals, and Health Care.  By offering  bribes, foreign corporations are often able to secure large government contracts that can be worth millions and billions of dollars.

Further, it should be remembered that a whistleblower that properly reports a contract bribe in one of these industries, can receive a portion of the entire illegally obtained contract if the SEC decides.

 SEC Whistleblower Incentive Program Information

Corporations that pay illegal kickbacks and bribes to government officials and former government officials in exchange for contracts including large building projects can be brought to justice and made to pay large penalties under the Foreign Corrupt Practices Act and whistleblowers that bring these corporations to justice may be able to collect large economic rewards under the  Securities Exchange Act (SEC Whistleblower Bounty Actions) and the Commodity Exchange Act (CFTC Whisteblower Bounty Actions).

The Illegal Bribe Whistleblower or Illegal Kickback Whistleblower may be entitled to not only the amount of the illegal bribe or kickback, but the benefit of the illegal bribe or kickback.  In cases where $100,000.00 bribe is made to obtain a $100 million building project, the Illegal Bribe Whistleblower or Illegal Kickback Whistleblower may be entitled to 10 to 30% of the $100,000,000.00 and the $100,000.00 translating into a $10 million to $30 million award.

Johnson & Johnson Bribery Lawsuit

According to Bloomberg news, "Johnson & Johnson (JNJ), the world’s second-biggest seller of medical products, will pay $70 million after admitting that the company bribed doctors in Europe and paid kickbacks in Iraq to win contracts and sell drugs and artificial joints." Johnson & Johnson Will Pay $70 Million Over Bribery Claims By Joshua Gallu and Alex Nussbaum - Apr 8, 2011 2:09 PM CT 

The SEC Complaint alleges that Johnson & Johnson through subsidiaries paid bribes to key health care provider decision makers including doctors and hospital administrators in several countries to win large contracts under the U.N. oil-for-food program. Further, the SEC alleged that Johnson & Johnson used slush funds, sham contracts and off-shore companies to carry out large bribes to key medical decision makers to secure large contracts and reward these decision makers for selecting Johnson & Johnson.

"The company agreed to pay $48.6 million in disgorgement and interest to settle the SEC’s claims and a $21.4 million fine to settle criminal charges filed by the Justice Department. As part of a deferred prosecution agreement with Justice, J&J admitted to the allegations and agreed to report on remediation and compliance measures every six months for three years." Johnson & Johnson Will Pay $70 Million Over Bribery Claims By Joshua Gallu and Alex Nussbaum - Apr 8, 2011 2:09 PM CT 

Siemens AG Bribes Lawsuit

"In December 2008, Siemens AG, Europe’s largest engineering firm, agreed to pay $800 million to the U.S. and $814 million to German authorities to settle claims that units of the company paid bribes to win contracts from Iraq’s government in the U.N. oil-for-food program and for projects including commuter rail in Venezuela, mobile-phone networks in Bangladesh, power plants in Israel and traffic-control systems in Russia." Johnson & Johnson Will Pay $70 Million Over Bribery Claims By Joshua Gallu and Alex Nussbaum - Apr 8, 2011 2:09 PM CT 

 

Panalpina World Transport Holding Ltd Bribery Lawsuit

"In November, Panalpina World Transport Holding Ltd., a Swiss freight-forwarding company, Royal Dutch Shell Plc, and five oil-services firms agreed to pay $237 million to settle civil and criminal claims that they paid thousands of bribes to African, Asian and South American officials on behalf of customers in the oil and gas industry." Johnson & Johnson Will Pay $70 Million Over Bribery Claims By Joshua Gallu and Alex Nussbaum - Apr 8, 2011 2:09 PM CT 

"The SEC this year launched an inquiry into whether investment firms have made improper payments ranging from kickbacks to lavish gifts and entertainment to get business from sovereign wealth funds." Johnson & Johnson Will Pay $70 Million Over Bribery Claims By Joshua Gallu and Alex Nussbaum - Apr 8, 2011 2:09 PM CT 

Foreign Corrupt Practices Act Lawyer Jason S. Coomer

As an International Whistleblower Foreign Corrupt Practices Act Lawyer and SEC International Business Whistleblower Reward Lawyer, Jason S. Coomer commonly works with other powerful international business lawyers to handle large International Lawsuits dealing with whistleblowers and illegal bribes, kickbacks, fraud and other SEC Foreign Corrupt Practices Act Lawsuits  He also works on Medicare Fraud Whistleblower Lawsuits, Defense Contractor Fraud Whistleblower Lawsuits, Stimulus Fraud Whistleblower Lawsuits, Government Contractor Fraud Whistleblower Lawsuits, Medicare Illegal Kickback Lawsuits, Confidential Financial Analyst Whistleblower Reward Lawsuits and other whistleblower recovery lawsuits.

If you are the original source with special knowledge of fraud and are interested in learning more about a potential lawsuit please feel free to contact  Lawyer Jason Coomer via e-mail message or use our submission form