This month, Layne Christensen Company ("Layne Christensen") agreed to pay $5.1 million to the U.S. Securities and Exchange Commission ("SEC") to resolve allegations that the company's subsidiaries in Africa and Australia violated the anti-bribery and books and records provisions of the U.S. Foreign Corrupt Practices Act ("FCPA").  Layne Christensen's subsidiaries allegedly paid nearly $800,000 to foreign officials in Mali, Guinea, and the Democratic Republic of the Congo to reduce its tax liability and avoid associated penalties for delinquent payment.  The company also allegedly made improper payments to local authorities and customs officials to obtain border entry and clearance for its equipment and employees without paying customs duties or penalties for violating immigration laws.  The SEC investigation found that the company allegedly received $3.9 million in unlawful benefits during a five-year period.  The Chief of the SEC Enforcement Division's FCPA Unit cited the fact that Layne Christensen self-reported the violations, cooperated fully with the investigation, and revamped its FCPA program as factors that lessened the amount of the company's penalty.  The U.S. Department of Justice ("DOJ") previously declined to prosecute Layne Christensen on August 15, 2014. 

GlaxoSmithKline PLC ("GlaxoSmithKline"), which paid $490 million to Chinese officials for improper payments last month, began an investigation into allegations of corrupt payments in the United Arab Emirates following a whistleblower complaint.  The company confirmed the investigation following the receipt of an email alleging improper payments, which was purportedly from a GlaxoSmithKline sales manager in the United Arab Emirates.

Meanwhile, another pharmaceutical company, Sanofi SA ("Sanofi") self-reported allegations of improper payments to the SEC and DOJ.  The allegations stemmed from an anonymous whistleblower complaint and relate to possible illegal payments in the Middle East and Africa from 2007 to 2012.

Ebola health epidemic highlights corruption problems in West African countries - As health officials struggle to contain the spread of the recent outbreak in West Africa's Sierra Leone, Guinea and Liberia, some are pointing to corruption as a major exacerbating factor in the outbreak, including reports of shipments of medical supplies delayed in port

SEC defendant challenges agency's powers to bring charges before administrative law judges - The head of a Delaware investment fund is challenging the SEC's powers under Section 929P of the Dodd-Frank Act to impose civil penalties in an administrative proceeding.  The case, which is before the federal district court for the southern district of New York, comes amidst criticism

UK takes major step to require large companies to disclose efforts taken to avoid supply chain slavery - A proposed new measure going through parliament in the UK would require disclosure of the steps companies have taken to ensure their supply chains are "slavery free."  If passed, the law would be notably broader than President Obama's 2012 executive order , which imposes transparency measures for trafficking and forced labor on federal U.S. contractors.

Layne Christensen pays $5.1 million to resolve FCPA charges with the SEC - Layne Christensen, the U.S.-based global water management, construction and drilling company, agreed to pay a $5.1 million fine this month to the SEC to resolve allegations that the company's subsidiaries in Africa and Australia violated the anti-bribery and books and records provisions of the FCPA.  The complete Compendium summary for this case may be accessed here.

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Israel

Horn & Co. Law Offices

NautaDutilh

In Netherlands, a legislative proposal, which eliminates the distinction between acting in violation of his obligations as an official and acting without violation of his obligations as an official, was adopted by the House of Representatives on 1 July 2014. This is a codification of case law, according to which bribery of an official is always considered to be 'in violation of his obligations.' 

21 October 2014

PR Newswire