It looks like there have been five corporate investigations added to the FCPA Blog’s April 2015 list. The Foreign Corrupt Practices Act investigations are being conducted by Akamai, Bilfinger, BNY Mellon, Nortek and Xylem. There are roughly 25 to 30 companies in addition to the 109 on the list that may be undergoing an investigation but there is insufficient public information to identify them on the list.
Here’s what we know:
Akamai is a cloud computing services firm that has advised the SEC and the DOJ it is conducting an internal investigation into sale practices for compliance with the anti-bribery law. The country wasn’t named and reportedly represents less than 1% of revenues.
Bilfinger is a German engineering firm. At the end of March, it confirmed employees of a subsidiary (Mauell) bribed public officials for contracts related to the supply of monitor walls for security control centers used in the 2014 World Cup. The company is covered by the FCPA due to a deferred prosecution agreement entered into in 2013 in connection with FCPA violations in Nigeria.
The SEC issued a Wells notice to the bank related to its hiring of interns related to officials operating sovereign wealth funds. A Wells notice indicates that the SEC intends to bring charges against the company and gives the company an opportunity to respond. According to the Wall Street Journal, the regulator drops 20% of its investigations after issuing a Wells notice.
Nortek is a manufacturer of home security and thermostat systems. It discovered questionable payments and expenses by its Chinese subsidiary, Linear Electronics, during an internal audit. It disclosed the investigation to the DOJ and the SEC.
Xylem is a global water technology provider. During an investigation into bid-rigging allegations by the Korea Fair Trade Commission, the company broadened its investigation to include the FCPA following allegations made by employees of its subsidiary in South Korea. The company disclosed the investigation to the SEC and the DOJ in January.
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