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Reducing Adverse Legal Consequences Through FCPA Remediation

BY Jonny Frank
March 28, 2013

In last month's issue, we observed that both the Department of Justice (DOJ) and the Securities Exchange Commission (SEC) have placed what they term a “high premium” on remediation efforts made by companies that discover or are accused of violations of the Foreign Corrupt Practices Act (FCPA). In many cases, the punishments meted out for such violations will be diminished if a company is proactive in working to limit an FCPA violation's effects and ensure that future breaches will not occur. We continue our discussion herein.

Other Misconduct

Imagine the embarrassment and severe legal consequences if, subsequent to learning of and dealing with a bribery or fraud situation, the company, or worse, the government, discovers that the perpetrators engaged in other wrongdoing or that the misconduct the company claimed was isolated actually pervades' across the organization. With this in mind, companies must make every effort to flush out other misconduct by the perpetrators of fraud or bribery, or similar misconduct by others in the organization.'

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