Whistleblowers can expose FCPA violations and stop corruption
What is the Foreign Corrupt Practices Act (FCPA)?
The Foreign Corrupt Practices Act (FCPA) is a powerful anti-bribery law that prohibits U.S. companies and individuals from paying money or any other sort of inducement to a foreign official to influence a decision or action affecting that company’s business.
Congress passed the FCPA in 1977, partially as a result of two separate cases against Northrop Corp. and Phillips Petroleum brought by one of Phillips & Cohen’s founding partners and his public interest law firm that exposed the use of corporate funds to pay bribes in foreign countries.
“. . . Offshore does not mean off-limits,” said Robert Khuzami, the former SEC enforcement director, in a statement issued about an FCPA case.
What are the incentives for whistleblowers who report FCPA violations?
The US welcomes whistleblowers with information about companies that are involved in the bribery of foreign officials and will reward whistleblowers through the US Securities and Exchange Commission (SEC) whistleblower reward program, if the information results in monetary sanctions exceeding $1 million.
The SEC and the Department of Justice, which jointly enforce the FCPA anti-bribery law, have become much more aggressive in recent years about pursuing foreign bribery cases. Under the provisions of the Dodd-Frank Act, whistleblowers are entitled to 10 percent to 30 percent of the amount recovered in FCPA cases and cases involving other SEC violations.
US and international corporations have paid huge penalties to the US to settle FCPA cases. Telia Company AB, a Sweden-based telecommunications provider, set a record when it paid $965 million in 2017 to settle an FCPA case. (Read Phillips & Cohen partner Erika Kelton’s comments about continued enforcement of the FCPA on Forbes.com.)
How can FCPA whistleblowers report misconduct?
If you would like to discuss your potential whistleblower case involving an FCPA violation or other securities law violations, please use our encrypted whistleblower contact form for a free, confidential review of your case.
With our extensive experience with the SEC whistleblower program, Phillips & Cohen knows how to evaluate and present whistleblower claims to the SEC in the most effective way.