FCPA Settlement Shows Gov't Going After All Sides



In this article, Amelia Hairston-Porter and Nina Gupta discuss the $2 million criminal penalty paid by Transport Logistics International Inc. (TLI) to the Department of Justice (DOJ) to settle one charge of conspiring to violate the anti-bribery provisions of the U.S. Foreign Corrupt Practices Act (FCPA). "[T]he DOJ's investigation into TLI has resulted in charges against not only the company itself, but also against Lambert, Condrey, Mikerin and Rubizhevsky. This means that the DOJ has brought charges against all sides of the covered corrupt transactions — the bribe payers [Lambert and Condrey], the bribe recipient [Mikerin] and a middleman [Rubizhevsky]. The DOJ accomplished this result with FCPA and wire fraud charges for the bribe payers, as well as money-laundering charges for the bribe recipient and the intermediary," Hairston-Porter and Gupta wrote. They also highlighted the fact that documents provided by the company were used to build a case against its former executives, which aligns with the FCPA Corporate Enforcement Policy's focus on enforcement efforts against such individuals while offering leniency to companies in exchange for cooperation. "TLI's case is an excellent example of this policy in practice, with the DOJ bringing an 11-count indictment against Lambert but offering the company a significant discount in penalties, in part for 'voluntarily organizing, identifying and producing documents that assisted the government's prosecution of individuals,'" the authors wrote.