Anderson FCPA Lawyer

U.S. companies operating globally must navigate a vast regulatory and legal landscape that includes domestic and foreign laws. Domestic companies doing business overseas must adhere to specific business practice standards when dealing with foreign governments and their representatives.

The Foreign Corrupt Practices Act prohibits U.S. companies from paying bribes to foreign officials to attain business or other benefits. If you or your company were contacted by government officials investigating FCPA violations, hiring a knowledgeable Anderson FCPA lawyer is in your best interest. Speak with our skilled federal defense attorneys today to discuss your case.

Overview of the FCPA

Enacted in 1977, the FCPA is codified in 15 U.S.C. § 78dd-3. The regulations prohibit willfully making payments or promising to pay anything of value to a foreign official to coerce them to take certain actions. The prohibitions also apply to foreign political party officials, candidates for foreign political office, and their representatives.

The FCPA’s anti-bribery provisions prohibit making such payments to influence the foreign official to take certain actions or inactions in their official capacity. These actions can include:

  • Inducing the foreign official to violate their lawful duty
  • Securing an improper advantage to obtain or retain business
  • Directing business to a particular person or entity

One common misconception is that the FCPA’s anti-bribery prohibitions only apply to publicly traded companies. The regulations apply to all U.S. persons and companies, certain foreign securities issuers, and foreign firms or persons that help facilitate corrupt payments.

The FCPA also requires that public companies comply with specific accounting rules found in 15 U.S. Code § 78m, which work in tandem with the anti-bribery provisions.

If a person or company is found to have violated the FCPA, they could face investigations, enforcement action, and civil penalties imposed by the Securities and Exchange Commission or the Department of Justice.

A defendant may also have to pay disgorgement and prejudgment interest in connection with illegal profits obtained through bribes. Our seasoned lawyers in Anderson could explain the FCPA in more detail during a private consultation.

How Companies Violate the FCPA’s Anti-Bribery Provisions

Bribery in violation of the FCPA does not always involve a cash payment. A covered person or company can illegally provide valuable benefits to obtain or retain business in various ways.

To prove a violation of the FCPA’s anti-bribery provisions, a prosecutor must show that:

  • A company or its employee paid or arranged to pay something of value
  • The payment was made to a foreign official
  • The payment was made for a corrupt purpose to influence them in their official duty

It is important to note that the definition of a foreign official is relatively broad under the FCPA. Foreign officials include any officer or employee of a foreign government, department, agency, or instrumentality thereof. The term also includes an officer or employee of a public international organization.

To violate the FCPA, a company or its employee does not have to pay money directly to a foreign official. The statute also prohibits companies from making bribery payments through third-party intermediaries.

In addition to cash payments, some examples of benefits that could bring about FCPA violations in Anderson are:

  • Gifts of tangible goods
  • Paying travel expenses
  • Paying for unreasonable meals or lodging
  • Certain political donations
  • Employing the child of a foreign official

In addition, the purpose of the bribe is not limited to obtaining or retaining business. A corrupt purpose can also include goals such as securing favorable tax treatment or evading a foreign country’s regulations, such as environmental laws.

Violations of the FCPA’s Accounting Provisions

When public companies violate the FCPA’s anti-bribery provisions, they are often penalized for violating the regulation’s accounting provisions. These accounting provisions provide that public companies must:

  • Maintain accurate and fair books and records reflecting the company’s business and transactions
  • Design and maintain a sufficient system of internal accounting controls

Public companies that make illegal bribe payments must also account for those payments in their books and records. To disguise the illegal payments, companies often record the bribes in their books and records as legitimate business expenses.

Additionally, public companies have an obligation to implement a system of internal accounting controls to prevent and detect illegal bribe payments. When companies are found to have paid illegal bribes, this is often due to insufficient internal controls. If you have additional questions about FCPA violations and your specific charges, reach out to our Anderson lawyers, Sloan Ellis and Brandi Hinton, today.

Talk to an Anderson Attorney About FCPA Investigations

If a federal agency contacts you or your company about FCPA violations, you should engage an Anderson FCPA lawyer. We take a direct, honest, and personalized approach to dealing with clients.

Our credible criminal defense attorneys have experience as former federal prosecutors, allowing us to understand the potential penalties you could face under federal law. Call Ellis Hinton today for more information. Based in Greenville, we serve SC and beyond.