Fraud the Act on Corrupt Practices Abroad week 1
docx
keyboard_arrow_up
School
Keiser University *
*We aren’t endorsed by this school
Course
1240
Subject
Law
Date
Feb 20, 2024
Type
docx
Pages
2
Uploaded by HighnessOxideAlpaca23
BIZ LAW WEEK ONE PROFESSOR WHITE
LAURALEE CONKLIN BUSINESS LAW
The Act on Corrupt Practices Abroad: A General Look; including case scenario.
Bribing in the corporate world is detrimental. In a free market system, product sales must be determined based on their price, quality, and service. The act of corporate bribery undermines this principle. Companies resort to bribing foreign officials primarily to secure business opportunities, disrupting international commerce's stability. Moreover, the domestic competitive environment is affected by the occurrence of bribery among domestic firms, which replaces fair competition in pursuing foreign business opportunities. (1)
A Fundamental Overview: The aim of the Foreign Corrupt Practices Act (FCPA) of 1977, with subsequent
revisions such as 15 U.S.C. §§ 78dd-1, et seq, is to outlaw payments made by certain individuals and entities to foreign government officials to gain or keep business opportunities. Specifically, the FCPA's anti-bribery provisions prevent the intentional use of the mail or any form of interstate commerce to corruptly further any offer, payment, promise to pay, or authorization of monetary value to any individual, while being aware that some or all of that money or value will be given, promised, or indirectly provided to a foreign official. Those recognized as guilty by the FCPA undergo criminal or civil prosecution by the DOJ, found in the fourth chapter 9-28.000 of the U.S. Attorney’s Manual to guide the resolution of corporate fraud as does The Principles of Federal Prosecution of Business Organizations. (2)
These fraudulent acts are done to influence foreign officials in their official role, encourage them to act unlawfully, or gain unfair advantages in obtaining, retaining, or directing business towards certain individuals or entities (3). For example, Tyson Foods which also has 3 locations in Mexico, called Tyson de Mexico (“TdM”). They (TdM) ultimately bribed the on-site state veterinarians to alter reports and TdM
deposited funds in the veterinarian’s wife's names (multiple were involved), who had nothing to do with the state-issued Veterinarians or Tdm. TdM’s payouts greatly enlarged the financials of the wives & vets. (4).
Starting in 1977, every U.S. individual and specific foreign companies selling securities have been subject
to the anti-corruption rules stated in the FCPA. In 1998, after certain modifications were implemented, the anti-corruption regulations of the FCPA were extended to foreign companies and individuals who, either directly or through intermediaries, engage in corrupt acts within the United States (5). The U.S. Securities and Exchange “SEC”, (Division of Enforcement) if warranted, investigations are conducted to see if there were violations of the federal securities law in civil law enforcement proceedings (6).
BIZ LAW WEEK ONE PROFESSOR WHITE
LAURALEE CONKLIN BUSINESS LAW
1)
https://www.justice.gov/criminal/criminal-fraud/file/1292051/dl?inline
2)
https://www.justice.gov/criminal/about-criminal-division
3)
https://www.sec.gov/spotlight/fcpa/fcpa-resource-guide.pdf
4)
https://www.justice.gov/sites/default/files/criminal-fraud/legacy/2013/05/06/02-10-
11tyson_foods_info.pdf
5)
https://www.justice.gov/criminal/criminal-fraud/foreign-corrupt-practices-act
6)
https://www.sec.gov/enforce/Article/enforce-about
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help