Know Your Investment Partners -- Frederic Bourke, The Pirate of Prague, Omega Advisors and the FCPA

HedgeCo.Net
12.27.11

In this article, Matt Reinhard discusses the recent decision by the Second Circuit Court of Appeals to sustain Frederic Bourke’s conviction on conspiracy to violate the Foreign Corrupt Practices Act and other charges.

In upholding his conviction, the Court of Appeals found the trial court correctly informed the jury it could find Bourke guilty of conspiring to violate the FCPA if it believed he “consciously avoided” gaining knowledge of the corrupt scheme. In rendering its decision, the Court emphasized that Bourke knew he was doing business in a country with a reputation for corruption and that Viktor Kozeny -- who was leading the investment syndicate -- had a reputation for corrupt dealings. This decision only reiterates the importance of conducting anti-corruption due diligence of potential business partners, especially on deals involving countries with a reputation for corruption.

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