The Securities and Exchange Commission (SEC) continues to ramp up its enforcement of the Federal Corrupt Practices Act (FCPA). In 2010, the SEC’s Enforcement Division created a specialized unit dedicated to enforcement of the FCPA, which prohibits U.S. companies from bribing foreign officials for government contracts and other business. To date, the agency has brought and settled nine separate enforcement actions in 2015.
Bristol-Myers Squibb Co. (BMS) is the most recent company to resolve FCPA charges. The company will pay nearly $14.7 million to settle allegations that its joint venture in China bribed health care providers at state-controlled hospitals in an effort to boost drug sales.
“Certain sales representatives of the joint venture improperly generated funds that were used to provide corrupt inducements [to health care providers] in the form of cash payments, gifts, meals, travel, entertainment, and sponsorships for conferences and meetings in order to secure new sales and increase existing sales,” the SEC stated. “BMS falsely recorded the relevant transactions as legitimate business expenses in its books and records.”
Additional enforcement actions
More enforcement actions are expected in the coming months. In addition to resolved cases, at least 78 companies reported that they are subject to an ongoing FCPA investigation in SEC filing as of September 30, according to Corporate Counsel.
In several cases, the FCPA violations did not involve outright bribes, suggesting that the SEC is making good on its “broken windows” policy in the FCPA arena. As we have previously mentioned on this blog, under the leadership of SEC Chair Mary Jo White, the agency’s enforcement policy is to “pursue even the smallest infractions” as a means of deterring more serious violations.
In its case against Hyperdynamics Corporation, the SEC alleged that the energy company committed books and records and internal controls offenses. Notably, the Department of Justice concluded its FCPA investigation without bringing charges. According to the SEC, Hyperdynamics failed to accurately record certain payments made by its subsidiary based in the Republic of Guinea and also failed to determine whether the company’s subsidiary paid related parties. Last month, Hyperdynamics resolved the FCPA charges by agreeing to pay the SEC $75,000.
In light of the SEC’s increased attention on the FCPA, corporations should focus on strengthening their internal controls and compliance efforts. As the latest enforcement actions highlight, even small violations can lead to costly legal headaches.
Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Businesses Are Facing Financial Headwinds—A Practical Guide
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
President Trump's Termination of Member Gwynne Wilcox
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
Breach of Contract Explained: Types and Consequences
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Gross Lease vs. Net Lease: Understanding the Key Differences
Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
