Shook Partner Discusses “Pros” and “Cons” of Self-Reporting Potential FCPA Violations in DRI Publication

Shook, Hardy & Bacon White Collar Defense & Government Investigations Practice Co-Chair David Maria provides a detailed discussion of typical issues that companies doing business internationally face in deciding whether to self-report to the U.S. government potential criminal conduct under the Foreign Corrupt Practices Act (FCPA) in the winter 2015 issue of DRI’s In-House Defense Quarterly.

According to Maria, a former prosecutor in the Criminal Division of the Department of Justice, a “corporate defendant starts with a significant strike against it if it seeks to cooperate after the government is informed of the conduct through independent means. Once the government learns of the conduct through a source other than the corporation (most likely a whistleblower), assuming that the corporation was aware of the conduct but opted not to disclose it (or had not yet disclosed it), even the most energetic cooperation may result in little credit given by the government.”

He explains various “pros” and “cons” of self-disclosure and concludes, among other things, that the financial incentive provided under the Dodd-Frank Act for individuals to report potential FCPA violations will continue to fuel the growing number of whistleblower complaints against companies. He also opines that “it’s only a matter of time before plaintiffs’ attorneys begin advertising their services and this whistleblower provision in foreign countries, especially in those countries that rank highest on the corruption index.”

Issue 552