Of them, 54 have been prosecuted or subjected to enforcement actions. Only 32 cases were brought over the previous three years, making the crackdown a record, according to Corporate Board Member magazine.
More cases are on the way since 100 other firms are under investigation.
Some highlights:
- Bristol-Myers Squibb is under investigation by the SECfor possible violations by the firm’s German subsidiaries.
- A senior vice president of InVision Technologies, a California firm that makes bomb detection gear, was fined $65,000 for irregularities regarding the firm’s representatives in China and the Philippines.
- Faro Technologies, a Florida firm that makes measurement equipment, paid a $1.1 million criminal penalty for payments to Chinese officials.
- Baker Hughes has agreed to pay $44 million to settle a case involving bribery to officials in six countries including Kazakhstan, Indonesia and Russia.
FCPA has long been controversial because many other countries with firms that compete in global markets with U.S. firms do not have such strict rules regarding making payments to foreign officials. Consequently, some foreign competitors win business from U.S. firms.
Yet, top executives and directors of American companies are personally at risk if their firm is implicated in bribery. They should make sure they are covered against charges in their Directors’ & Officers’ insurance policies and should make anti-bribery statements part of their corporate policies.
