The Foreign Corrupt Practices Act and Whistleblowers
What does the SEC Whistleblower Program have to do with the Foreign Corrupt Practices Act?
If you have evidence of foreign bribery or accounting violations, you could be eligible for a reward under the Foreign Corrupt Practices Act (“FCPA”) provision of the Securities and Exchange Commission’s (“SEC”) Whistleblower Program. The Dodd-Frank Act breathed new life into the FCPA by offering whistleblowers up to 30% of the recoveries for submitting complaints to the SEC of FCPA violations.
What is a FCPA Violation?
A FCPA violation is a violation of either the anti-bribery provisions or the accounting practices provisions of the FCPA. Specifically, the FCPA prohibits any United States individual or business, foreign business that trades on a United States stock exchange, or certain other foreign businesses or persons from bribing a foreign official to obtain business in the foreign country. Further, the FCPA requires accurate accounting records.
What is a Foreign Official?
A foreign official is an individual who works as an officer or employee of a government department or an employee of a government run company.
What are some real life examples of FCPA Violations?
Major companies around the world have paid hundreds of millions of dollars to settle FCPA violations including:
- Siemens AG ($800 million for bribing foreign officials in Venezuela, Israel, Mexico, Bangladesh, Argentina, Vietnam, China, and Russia to obtain business and for inadequate internal accounting controls);
- Alstom SA ($772 million for bribing foreign officials all across the world in order to obtain billions of dollars in projects and for inadequate internal accounting controls);
- KBR/Halliburton ($579 million for bribing Nigerian government officials to gain construction contracts and for false accounting records and inadequate internal accounting controls).
What can I do to stop the violations of the FCPA?
If you have knowledge and proof of Foreign Corrupt Practices Act violations, then give us a call today for a free consultation and case review with an experienced whistleblower attorney.
This information is for educational purposes. It is not offered as and does not constitute legal advice or legal opinions. You should not act or rely upon this information without seeking the advice of an attorney.