James Tillen Comments on Quad/Graphics SEC Settlement in Anti-Corruption Report
"Quad/Graphics Self-Reports FCPA and Sanctions Violations, Earning a DOJ Declination and Small SEC Fine"
James Tillen commented on Quad/Graphics, Inc.'s recent Department of Justice (DOJ) declination and Securities and Exchange Commission (SEC) settlement regarding U.S. Foreign Corrupt Practices Act (FCPA) and sanctions violations, and language in the SEC’s cease-and-desist order indicating that the SEC regards an anti-corruption compliance program as an internal control and failure to have one may lead to an FCPA violation. "The SEC's interpretation is aggressive as the legislative history suggests that the controls language in the FCPA was intended to apply to accounting controls related to the preparation of financial statements not compliance programs," Tillen said. "Regardless, anti-corruption compliance programs are essential for companies to prevent FCPA violations and increase the chances that the DOJ and SEC will decline to prosecute or reduce fines if violations do occur."