Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Second Circuit Ruling Offers Ways to Mitigate FCPA Risk Through Corporate Structure
The Foreign Corrupt Practices Act (FCPA) is an unusual beast. It is used by the Department of Justice (DOJ) and the U.S. Securities and Exchange Commission to extract eye-watering sanctions from companies after years of investigation — millions on the lower end and billions on the higher. The DOJ employs the FCPA to indict defendants who live outside the United States, engage in purported misconduct outside the United States, and cause the alleged harm outside the United States. And when those defendants are employed or affiliated with U.S. companies, then those companies can be on the hook too.
Yet despite the statute's breadth and its aggressive enforcement, it has largely escaped judicial scrutiny. Individuals and companies are reluctant to test the bounds of the law and risk federal prison or crippling penalties. They cut the best deals they can get and move on. But one man, Lawrence Hoskins, has refused to fall in line and has almost single-handedly shaped recent FCPA jurisprudence, which could be a boon to corporate counsel and compliance officers.
The Hoskins Story
Hoskins' story is quintessentially FCPA: The conduct occurred almost entirely abroad, many years ago. From 2002 to 2009, he worked for a corporation headquartered in Europe, and though he was technically employed by its UK subsidiary, he was assigned to work in France. Hoskins was not a U.S. citizen and did not participate in the bribery scheme while on U.S. soil. Hoskins' only connection to the United States was that the department in which he worked performed functions for the corporation's various subsidiaries, including for one based in Connecticut. That subsidiary used consultants to bribe foreign officials to secure a contract. The company resolved the case with the DOJ in late 2014, for a then-record setting $772 million in penalties (barely cracking the top 10 today). Hoskins fought the case, and ultimately prevailed on the FCPA charges.
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.
The Stranger to the Deed Rule
In 1987, a unanimous Court of Appeals reaffirmed the vitality of the "stranger to the deed" rule, which holds that if a grantor executes a deed to a grantee purporting to create an easement in a third party, the easement is invalid. Daniello v. Wagner, decided by the Second Department on November 29th, makes it clear that not all grantors (or their lawyers) have received the Court of Appeals' message, suggesting that the rule needs re-examination.