The 7th Most Important Financial Fraud Issue Of 2009: Bribery And The Foreign Corrupt Practices Act

The word "bribe" is known throughout the world. In the U.S., it has been called a pay-off, a kickback, hush money, payola, and a sweetener. It is sometimes concealed behind what is called a commission, a reward, a finder's fee, a gratuity, or a "thank you." Other countries have even more colorful language, as in India where it is known

as a "backhander," the Middle East where it is known as "baksheesh," or in Nigeria where it is sometimes called "dash." One of the most pointed, and accurate, word for bribe comes from Mexico where it is often called mordida, or "the bite."  Whatever it is called, it is under attack.

The other week, Assistant U.S. Attorney General Lanny A. Breuer told the 22nd National Forum on the Foreign Corrupt Practices Act that 2009 “was probably the most dynamic single year in the more than 30 years since the FCPA was enacted.” Breuer noted that there has been a “record number of trials, a record number of individuals charged with FCPA violations, and record corporate fines, including $1.6 billion in global penalties in the Siemens matter and $579 million in penalties in Halliburton/KBR.”
 
In our view, the strong upward trend in enforcement makes the FCPA the 7th most significant Financial Fraud Law issue of 2009.
 
For background on the FCPA, see, FCPA Violations Expected To Increase In Coming Years (at http://www.financialfraudlaw.com/content/fcpa-violations-expected-increase-coming-years); Both History and Recent Trends Indicate That Strong FCPA Enforcement Likely to Continue During Economic Downturn (at http://www.financialfraudlaw.com/fraudreport/both-history-and-recent-trends-indicate-strong-fcpa-enforcement-likely-continue-during-e); Engaging Foreign Agents: Heeding the Lessons from the Halliburton FCPA Enforcement Action (at http://www.financialfraudlaw.com/content/engaging-foreign-agents-heeding-lessons-halliburton-fcpa-enforcement-action); and The Emerging Trend to Prosecute Individuals: Connecticut Investor Convicted of Conspiracy to Bribe Azerbaijan Officials (at http://www.financialfraudlaw.com/fraudreport/emerging-trend-prosecute-individuals-connecticut-investor-convicted-conspiracy-bribe-aze).