Материал: guide

55 See International Anti-Bribery and Fair Competition Act of 1998, Pub. L. 105-366, 112 Stat. 3302 (1998); 15 U.S.C. § 78dd-3(a); see also U.S. Dept. of Justice, Criminal Resource Manual § 9-1018 (Nov. 2000) (the Department “interprets [Section 78dd-3(a)] as conferring jurisdiction whenever a foreign company or national causes an act to be done within the territory of the United States by any person acting as that company’s or national’s agent.”). This interpretation is consistent with U.S. treaty obligations. See S. Rep. No. 105-2177 (1998) (expressing Congress’ intention that the 1998 amendments to the FCPA “conform it to the requirements of and to implement the OECD Convention.”); Anti-Bribery Convention at art. 4.1, supra note 19 (“Each Party shall take such measures as may be necessary to establish its jurisdiction over the bribery of a foreign public official when the offence is committed in whole or in part in its territory.”).

56 15 U.S.C. § 78dd-3(a); see, e.g., Criminal Information, United States v. Alcatel-Lucent France, S.A., et al., No. 10-cr-20906 (S.D. Fla. Dec. 27, 2010), ECF No. 1 [hereinafter United States v. Alcatel-Lucent France] (subsidiary of French publicly traded company convicted of conspiracy to violate FCPA), available at http://www.justice.gov/criminal/fraud/ fcpa/cases/alcatel-lucent-sa-etal/12-27-10alcatel-et-al-info.pdf; Criminal Information, United States v. DaimlerChrysler Automotive Russia SAO, No. 10-cr-64 (D.D.C. Mar. 22, 2010), ECF No. 1 (subsidiary of

German publicly traded company convicted of violating FCPA), available at http://www.justice.gov/criminal/fraud/fcpa/cases/daimler/03-22- 10daimlerrussia-info.pdf; Criminal Information, United States v. Siemens S.A. (Argentina), No. 08-cr-368 (D.D.C. Dec. 12, 2008), ECF No. 1 (subsidiary of German publicly traded company convicted of violating FCPA), available at http://www.justice.gov/criminal/fraud/fcpa/cases/ siemens/12-12-08siemensargen-info.pdf.

57See 15 U.S.C. §§ 78dd-2(h)(5) (defining “interstate commerce”), 78dd- 3(f )(5) (same); see also 15 U.S.C. §78c(a)(17).

5815 U.S.C. §§ 78dd-2(h)(5), 78dd-3(f )(5).

59See 15 U.S.C. § 78dd-3.

60Criminal Information, United States v. JGC Corp., No. 11-cr-260 (S.D. Tex. Apr. 6, 2011), ECF No. 1 [hereinafter United States v. JGC

Corp.], available at http://www.justice.gov/criminal/fraud/fcpa/cases/ jgc-corp/04-6-11jgc-corp-info.pdf; Criminal Information, United States v. Snamprogetti Netherlands B.V., No. 10-cr-460 (S.D. Tex. Jul. 7, 2010), ECF No. 1 [hereinafter United States v. Snamprogetti], available at http://www.justice.gov/criminal/fraud/fcpa/cases/snamprogetti/07-07- 10snamprogetti-info.pdf.

61See 15 U.S.C. §§ 78dd-1(g) (“irrespective of whether such issuer or such officer, director, employee, agent, or stockholder makes use of the mails or any means or instrumentality of interstate commerce in furtherance of such offer, gift, payment, promise, or authorization”), 78dd-2(i)

(1) (“irrespective of whether such United States person makes use of the mails or any means or instrumentality of interstate commerce in furtherance of such offer, gift, payment, promise, or authorization”).

62S. Rep. No. 105-277 at 2 (“[T]he OECD Convention calls on parties to assert nationality jurisdiction when consistent with national legal and constitutional principles. Accordingly, the Act amends the FCPA to provide for jurisdiction over the acts of U.S. businesses and nationals in furtherance of unlawful payments that take place wholly outside

the United States. This exercise of jurisdiction over U.S. businesses and nationals for unlawful conduct abroad is consistent with U.S. legal and constitutional principles and is essential to protect U.S. interests abroad.”).

63Id. at 2-3.

6415 U.S.C. §§ 78dd-1(a), 78dd-2(a), 78dd-3(a).

65See H.R. Rep. No. 95-831, at 12 (referring to “business purpose” test).

66See, e.g., Complaint, SEC v. Siemens AG, supra note 48; Criminal Information, United States v. Siemens AG, supra note 48.

67In amending the FCPA in 1988, Congress made clear that the business purpose element, and specifically the “retaining business” prong, was meant to be interpreted broadly:

The Conferees wish to make clear that the reference to corrupt payments for “retaining business” in present law is not limited to the renewal of contracts or other business, but also includes a prohibition against corrupt payments related to the execution or performance of contracts or the carrying out of existing business, such as a payment to a foreign

official for the purpose of obtaining more favorable tax treatment. The term should not, however, be construed so broadly as to include lobbying or other normal representations to government officials.

H.R. Rep. No. 100-576, at 1951-52 (internal citations omitted).

68 See, e.g., Complaint, SEC v. Panalpina, Inc., No. 10-cv-4334 (S.D. Tex. Nov. 4, 2010), ECF No. 1 [hereinafter SEC v. Panalpina, Inc.], available at http://www.sec.gov/litigation/complaints/2010/comp21727.pdf; Criminal Information, United States v. Panalpina, Inc., No. 10-cr-

765 (S.D. Tex. Nov. 4, 2010), ECF No. 1 [hereinafter United States v. Panalpina, Inc.], available at http://www.justice.gov/criminal/fraud/ fcpa/cases/panalpina-inc/11-04-10panalpina-info.pdf; Criminal Information, United States v. Panalpina World Transport (Holding) Ltd., No. 10-cr-769 (S.D. Tex. Nov. 4, 2010), ECF No. 1, available at http://www.justice.gov/criminal/fraud/fcpa/cases/panalpina- world/11-04-10panalpina-world-info.pdf; see also Press Release, U.S. Sec. and Exchange Comm., SEC Charges Seven Oil Services and Freight Forwarding Companies for Widespread Bribery of Customs Officials (Nov. 4, 2010) (“The SEC alleges that the companies bribed customs officials in more than 10 countries in exchange for such perks as avoiding applicable customs duties on imported goods, expediting

the importation of goods and equipment, extending drilling contracts, and lowering tax assessments.”), available at http://www.sec.gov/ news/press/2010/2010-214.htm; Press Release, U.S. Dept. of Justice, Oil Services Companies and a Freight Forwarding Company Agree to Resolve Foreign Bribery Investigations and to Pay More Than $156 Million in Criminal Penalties (Nov. 4, 2010) (logistics provider and its

subsidiary engaged in scheme to pay thousands of bribes totaling at least $27 million to numerous foreign officials on behalf of customers in oil and gas industry “to circumvent local rules and regulations relating to the import of goods and materials into numerous foreign jurisdictions”), available at http://www.justice.gov/opa/pr/2010/November/10- crm-1251.html.

69United States v. Kay, 359 F.3d 738, 755-56 (5th Cir. 2004).

70Id. at 749. Indeed, the Kay court found that Congress’ explicit exclusion of facilitation payments from the scope of the FCPA was evidence that “Congress intended for the FCPA to prohibit all other

illicit payments that are intended to influence non-trivial official foreign action in an effort to aid in obtaining or retaining business for some person.” Id. at 749-50 (emphasis added).

71Id. at 750.

72Id. at 749-55.

73Id. at 756 (“It still must be shown that the bribery was intended to produce an effect—here, through tax savings—that would ‘assist in obtaining or retaining business.’”).

74The FCPA does not explicitly define “corruptly,” but in drafting the statute Congress adopted the meaning ascribed to the same term in the domestic bribery statute, 18 U.S.C. § 201(b). See H.R. Rep. No. 95-640, at 7.

75The House Report states in full:

The word “corruptly” is used in order to make clear that the offer, payment, promise, or gift, must be intended to induce the recipient to misuse

his official position; for example, wrongfully to direct business to the payor or his client, to obtain preferential legislation or regulations, or to induce a foreign official to fail to perform an official function. The word “corruptly” connotes an evil motive or purpose such as that required under 18 U.S.C. 201(b) which prohibits domestic bribery. As in

18 U.S.C. 201(b), the word “corruptly” indicates an intent or desire wrongfully to influence the recipient. It does not require that the act [be] fully consummated or succeed in producing the desired outcome.

Id. The Senate Report provides a nearly identical explanation of the meaning of the term:

The word “corruptly” is used in order to make clear that the offer, payment, promise, or gift, must be intended to induce the recipient to misuse

his official position in order to wrongfully direct business to the payor or his client, or to obtain

preferential legislation or a favorable regulation. The word “corruptly” connotes an evil motive or purpose, an intent to wrongfully influence the recipient.

S. Rep. No. 95-114, at 10.

76See 15 U.S.C. §§ 78dd-1(a), 78dd-2(a), 78dd-3(a).

77See, e.g., Complaint, SEC v. Monsanto Co., No. 05-cv-14 (D.D.C.

Jan. 6, 2005) (among other things, the company paid a $50,000 bribe to influence an Indonesian official to repeal an unfavorable law, which was not repealed despite the bribe), available at http://www.sec.gov/ litigation/complaints/comp19023.pdf; Criminal Information, United States v. Monsanto Co., No. 05-cr-8 (D.D.C. Jan. 6, 2005), available at

http://www.justice.gov/criminal/fraud/fcpa/cases/monsanto-co/01-06- 05monsanto-info.pdf.

78Jury instructions in FCPA cases have defined “corruptly” consistent with the definition found in the legislative history. See, e.g., Jury Instructions at 22-23, United States v. Esquenazi, supra note 44; Jury Instructions at 10, United States v. Green, supra note 44; Jury Instructions at 35, United States v. Jefferson, supra note 44; Jury Instructions at 25,

United States v. Bourke, supra note 44; Jury Instructions at 17, United States v. Kay, supra note 44; Jury Instructions at 5, United States v. Mead, supra note 44.

79See Complaint, SEC v. Innospec, Inc., No. 10-cv-448 (D.D.C. Mar.

18, 2010), ECF No. 1 [hereinafter SEC v. Innospec], available at http:// www.sec.gov/litigation/complaints/2010/comp21454.pdf; Criminal Information at 8, United States v. Innospec Inc., No. 10-cr-61 (D.D.C. Mar. 17, 2010), ECF No. 1 [hereinafter United States v. Innospec], available at http://www.justice.gov/criminal/fraud/fcpa/cases/innospec- inc/03-17-10innospec-info.pdf.

80See Complaint, SEC v. Innospec, supra note 79; Criminal Information,

United States v. Innospec, supra note 79.

81See 15 U.S.C. §§ 78dd-2(g)(2)(A), 78dd-3(e)(2)(A), 78ff(c)(2)(A).

82Compare 15 U.S.C. § 78ff(c)(1)(A) (corporate criminal liability under issuer provision) with § 78ff(c)(2)(A) (individual criminal liability under issuer provision); compare 15 U.S.C. § 78dd-2(g)(1)(A) (corporate

criminal liability under domestic concern provision) with § 78dd-2(g) (2)(A) (individual criminal liability under issuer provision); compare 15 U.S.C. § 78dd-3(e)(1)(A) (corporate criminal liability for territorial provision) with § 78dd-3(e)(2)(A) (individual criminal liability for territorial provision). However, companies still must act corruptly. See Section 30A(a), 15 U.S.C. § 78dd-1(a); 15 U.S.C. §§ 78dd-2(a), 78dd-3(a).

83United States v. Kay, 513 F.3d 432, 448 (5th Cir. 2007); see also Jury Instructions at 38, United States v. Esquenazi, supra note 44; Jury

Instructions at 10, United States v. Green, supra note 44; Jury Instructions at 35, United States v. Jefferson, supra note 44; Jury Instructions at 25,

United States v. Bourke, supra note 44; Jury Instructions at 5, United States v. Mead, supra note 44.

84Bryan v. United States, 524 U.S. 184, 191-92 (1998) (construing “willfully” in the context of 18 U.S.C. § 924(a)(1)(A)) (quoting Ratzlaf v. United States, 510 U.S. 135, 137 (1994)); see also Kay, 513 F.3d at 446-

51 (discussing Bryan and term “willfully” under the FCPA).

85Kay, 513 F.3d at 447-48; Stichting Ter Behartiging Van de Belangen Van Oudaandeelhouders In Het Kapitaal Van Saybolt Int’l B.V. v. Schreiber, 327 F.3d 173, 181 (2d Cir. 2003).

86The phrase “anything of value” is not defined in the FCPA, but the identical phrase under the domestic bribery statute has been broadly construed to include both tangible and intangible benefits. See, e.g.,

United States v. Moore, 525 F.3d 1033, 1048 (11th Cir. 2008) (rejecting defendant’s objection to instruction defining sex as a “thing of value,” which “unambiguously covers intangible considerations”); United States v. Gorman, 807 F.2d 1299, 1304-05 (6th Cir. 1986) (holding that loans and promises of future employment are “things of value”); United States v. Williams, 705 F.2d 603, 622-23 (2d Cir. 1983) (approving jury instruction that stock could be a “thing of value” if defendant believed it had value, even though the shares had no commercial value, and noting that “[t]he phrase ‘anything of value’ in bribery and related statutes has consistently been given a broad meaning”).

87Section 30A(a), 15 U.S.C. § 78dd-1(a); 15 U.S.C. §§ 78dd-2(a), 78dd- 3(a) (emphasis added).

88Like the FCPA, the domestic bribery statute, 18 U.S.C. § 201, prohibits giving, offering, or promising “anything of value.” Numerous domestic

APPENDIX

Endnotes

bribery cases under Section 201 have involved “small” dollar bribes. See, e.g., United States v. Franco, 632 F.3d 880, 882-84 (5th Cir. 2011) (affirming bribery convictions of inmate for paying correctional officer $325 to obtain cell phone, food, and marijuana, and noting that 18 U.S.C. § 201 does not contain minimum monetary threshold); United States v. Williams, 216 F.3d 1099, 1103 (D.C. Cir. 2000) (affirming bribery conviction for $70 bribe to vehicle inspector); United States v. Traitz, 871 F.2d 368, 396 (3rd Cir. 1989) (affirming bribery conviction for $100 bribe paid to official of Occupational Health and Safety Administration); United States v. Hsieh Hui Mei Chen, 754 F.2d 817, 822 (9th Cir. 1985) (affirming bribery convictions including $100 bribe to immigration official); United States v. Bishton, 463 F.2d 887, 889

(D.C. Cir. 1972) (affirming bribery conviction for $100 bribe to division chief of District of Columbia Sewer Operations Division).

89Complaint, SEC v. Daimler AG, supra note 48; Criminal Information,

United States v. Daimler AG, supra note 48.

90Complaint, SEC v. Halliburton Company and KBR, Inc., No. 09-cv-

399(S.D. Tex. Feb. 11, 2009), ECF No 1 [hereinafter SEC v. Halliburton

and KBR], available at http://www.sec.gov/litigation/complaints/2009/ comp20897.pdf; Criminal Information, United States v. Kellogg

Brown & Root LLC, No. 09-cr-71, ECF No. 1 (S.D. Tex. Feb. 6, 2009) [hereinafter United States v. KBR], available at http://www.justice.gov/ criminal/fraud/fcpa/cases/kelloggb/02-06-09kbr-info.pdf.

91Complaint, SEC v. Halliburton and KBR, supra note 90; Criminal Information, United States v. KBR, supra note 90.

92See, e.g., Complaint, SEC v. RAE Sys. Inc., No. 10-cv-2093 (D.D.C. Dec. 10, 2010), ECF No. 1 [hereinafter SEC v. RAE Sys., Inc.] (fur coat, among other extravagant gifts), available at http://www.sec.gov/

litigation/complaints/2010/comp21770.pdf; Non-Pros. Agreement, In re RAE Sys. Inc. (Dec. 10, 2010) [hereinafter In re RAE Sys. Inc.] (same), available at http://www.justice.gov/criminal/fraud/fcpa/cases/ rae-systems/12-10-10rae-systems.pdf; Complaint, SEC v. Daimler AG, supra note 48 (armored Mercedes Benz worth €300,000); Criminal Information, United States v. Daimler AG, supra note 48 (same).

93 See Complaint, SEC v. ABB Ltd, No. 04-cv-1141 (D.D.C. July 6, 2004), ECF No. 1, available at http://www.sec.gov/litigation/

complaints/comp18775.pdf; Criminal Information, United States v. ABB Vetco Gray Inc., et al., No. 04-cr-279 (S.D. Tex. June 22, 2004), ECF No. 1 [hereinafter United States v. ABB Vetco Gray], available at http://www.justice.gov/criminal/fraud/fcpa/cases/abb/06-22- 04abbvetco-info.pdf.

94 Complaint, SEC v. UTStarcom, Inc., No. 09-cv-6094 (N.D. Cal. Dec. 31, 2009), ECF No. 1 [hereinafter SEC v. UTStarcom], available at http://www.sec.gov/litigation/complaints/2009/comp21357.pdf; Non- Pros. Agreement, In re UTStarcom Inc. (Dec. 31, 2009) [hereinafter In re UTStarcom], available at http://www.justice.gov/criminal/fraud/fcpa/ cases/utstarcom-inc/12-31-09utstarcom-agree.pdf.

95Complaint, SEC v. UTStarcom, supra note 94; Non-Pros. Agreement,

In re UTStarcom, supra note 94.

96Complaint, SEC v. UTStarcom, supra note 94; Non-Pros. Agreement,

In re UTStarcom, supra note 94.

97Complaint, SEC v. Lucent Technologies Inc., No. 07-cv-2301 (D.D.C. Dec. 21, 2007), ECF No.1 [hereinafter SEC v. Lucent], available at

http://www.sec.gov/litigation/complaints/2007/comp20414.pdf; Non- Pros. Agreement, In re Lucent Technologies (Nov. 14, 2007) [hereinafter In re Lucent], available at http://www.justice.gov/criminal/fraud/fcpa/ cases/lucent-tech/11-14-07lucent-agree.pdf.

98Complaint, SEC v. Lucent, supra note 97; Non-Pros. Agreement, In re Lucent, supra note 97.

99The company consented to the entry of a final judgment permanently enjoining it from future violations of the books and records and internal

controls provisions and paid a civil penalty of $1,500,000. Complaint, SEC v. Lucent, supra note 97. Additionally, the company entered into a non-prosecution agreement with DOJ and paid a $1,000,000 monetary penalty. Non-Pros. Agreement, In re Lucent, supra note 97.

100United States v. Liebo, 923 F.2d 1308, 1311 (8th Cir. 1991).

101Judgment, United States v. Liebo, No. 89-cr-76 (D. Minn. Jan. 31, 1992), available at http://www.justice.gov/criminal/fraud/fcpa/cases/ liebor/1992-01-31-liebor-judgment.pdf.

102Complaint, SEC v. Schering-Plough Corp., No. 04-cv-945 (D.D.C. June 9, 2004), ECF No. 1, available at http://www.sec.gov/litigation/

complaints/comp18740.pdf; Admin. Proceeding Order, In the Matter of Schering-Plough Corp., Exchange Act Release No. 49838 (June 9, 2004) (finding that company violated FCPA accounting provisions and imposing $500,000 civil monetary penalty), available at http://www.sec. gov/litigation/admin/34-49838.htm.

103 FCPA opinion procedure releases can be found at http://www. justice.gov/criminal/fraud/fcpa/. In the case of the company seeking to contribute the $1.42 million grant to a local MFI, DOJ noted that it had undertaken each of these due diligence steps and controls, in addition to others, that would minimize the likelihood that anything of value would be given to any officials of the Eurasian country. U.S. Dept. of Justice, FCPA Op. Release 10-02 (July 16, 2010), available at http://www. justice.gov/criminal/fraud/fcpa/opinion/2010/1002.pdf.

104U.S. Dept. of Justice, FCPA Op. Release 95-01 (Jan. 11, 1995), available at http://www.justice.gov/criminal/fraud/fcpa/ opinion/1995/9501.pdf.

105Id.

106Id.

107U.S. Dept. of Justice, FCPA Op. Release 97-02 (Nov. 5, 1997), available at http://www.justice.gov/criminal/fraud/fcpa/

opinion/1997/9702.pdf; U.S. Dept. of Justice, FCPA Op. Release 06-01 (Oct. 16, 2006), available at http://www.justice.gov/criminal/

fraud/fcpa/opinion/2006/0601.pdf.

108U.S. Dept. of Justice, FCPA Op. Release 06-01 (Oct. 16, 2006).

109Id.

110Id.

111See Section 30A(a)(1)-(3) of the Exchange Act, 15 U.S.C. § 78dd-1(a)

(1)-(3); 15 U.S.C. §§ 78dd-2(a)(1)-(3), 78dd-3(a)(1)-(3).

112Section 30A(f )(1)(A) of the Exchange Act, 15 U.S.C. § 78dd-1(f )(1) (A); 15 U.S.C. §§ 78dd-2(h)(2)(A), 78dd-3(f )(2)(A).

113Under the FCPA, any person “acting in an official capacity for

or on behalf of ” a foreign government, a department, agency, or instrumentality thereof, or a public international organization, is a foreign official. Section 30A(f )(1)(A), 15 U.S.C. § 78dd-1(f )(1)(A); 15 U.S.C. §§ 78dd-2(h)(2)(A), 78dd-2(f )(2)(A). See also U.S. Dept. of Justice, FCPA Op. Release No. 10-03, at 2 (Sept. 1, 2010), available at http://www.justice.gov/criminal/fraud/fcpa/opinion/2010/1003.pdf (listing safeguards to ensure that consultant was not acting on behalf of foreign government).

114But see Sections 30A(b) and f(3)(A) of the Exchange Act, 15 U.S.C. § 78dd-1(b) & (f )(3); 15 U.S.C. §§ 78dd-2(b) & (h)(4), 78dd-3(b) & (f )

(4) (facilitating payments exception).

115Even though payments to a foreign government may not violate the anti-bribery provisions of the FCPA, such payments may violate other U.S. laws, including wire fraud, money laundering, and the FCPA’s accounting provisions. This was the case in a series of matters brought by DOJ and SEC involving kickbacks to the Iraqi government through the United Nations Oil-for-Food Programme. See, e.g., Complaint, SEC v. Innospec, supra note 79; Criminal Information, United States v. Innospec, supra note 79; Complaint, SEC v. Novo Nordisk A/S, No. 09-cv-862 (D.D.C. May 11, 2009), ECF No. 1, available at http://www.sec.gov/

litigation/complaints/2009/comp21033.pdf; Criminal Information, United States v. Novo Nordisk A/S, No. 09-cr-126 (D.D.C. May 11, 2009), ECF No. 1, available at http://www.justice.gov/criminal/ fraud/fcpa/cases/nordiskn/05-11-09novo-info.pdf; Complaint, SEC v. Ingersoll-Rand Company Ltd., No. 07-cv-1955 (D.D.C. Oct. 31, 2007), ECF No. 1, available at http://www.sec.gov/litigation/

complaints/2007/comp20353.pdf; Criminal Information, United States v. Ingersoll-Rand Italiana SpA, No. 07-cr-294 (D.D.C. Oct. 31, 2007), ECF No. 1, available at http://www.justice.gov/criminal/fraud/fcpa/ cases/ingerand-italiana/10-31-07ingersollrand-info.pdf; Complaint, SEC v. York Int’l Corp., No. 07-cv-1750 (D.D.C. Oct. 1, 2007), ECF

No. 1 [hereinafter SEC v. York Int’l Corp.], available at http://www.sec. gov/litigation/complaints/2007/comp20319.pdf; Criminal Information, United States v. York Int’l Corp., No. 07-cr-253 (D.D.C. Oct. 1, 2007), ECF No. 1 [hereinafter United States v. York Int’l Corp.], available at http://www.justice.gov/criminal/fraud/fcpa/cases/york/10-01-07york- info.pdf; Complaint, SEC v. Textron Inc., No. 07-cv-1505 (D.D.C. Aug. 23, 2007), ECF No. 1 [hereinafter SEC v. Textron], available at http:// www.sec.gov/litigation/complaints/2007/comp20251.pdf; Non-Pros. Agreement, In re Textron Inc. (Aug. 23, 2007), available at http://www. justice.gov/criminal/fraud/fcpa/cases/textron-inc/08-21-07textron- agree.pdf. DOJ has issued opinion procedure releases concerning payments (that were, in essence, donations) to government agencies or departments. See U.S. Dept. of Justice, FCPA Op. Release 09-01 (Aug. 3, 2009) (involving donation of 100 medical devices to foreign government), available at http://www.justice.gov/criminal/fraud/ fcpa/opinion/2009/0901.pdf; U.S. Dept. of Justice, FCPA Op. Release 06-01 (Oct. 16, 2006) (involving contribution of $25,000 to regional customs department to pay incentive rewards to improve local enforcement of anti-counterfeiting laws), available at http://www.justice. gov/criminal/fraud/fcpa/opinion/2006/0601.pdf.

116The United States has some state-owned entities, like the Tennessee Valley Authority, that are instrumentalities of the government. McCarthy v. Middle Tenn. Elec. Membership Corp., 466 F.3d 399, 411 n.18

(6th Cir. 2006) (“[T]here is no question that TVA is an agency and instrumentality of the United States.”) (internal quotes omitted).

117During the period surrounding the FCPA’s adoption, state-owned entities held virtual monopolies and operated under state-controlled price-setting in many national industries around the world. See generally

World Bank, Bureaucrats in Business: The Economics and Politics of Government Ownership, World Bank Policy Research Report at 78 (1995); Sunita Kikeri and Aishetu Kolo, State Enterprises, The World Bank Group (Feb. 2006), available at http://rru.worldbank.org/documents/ publicpolicyjournal/304Kikeri_Kolo.pdf.

118Id. at 1 (“[A]fter more than two decades of privatization, government ownership and control remains widespread in many regions—and in many parts of the world still dominates certain sectors.”).

119To date, consistent with the approach taken by DOJ and SEC, all district courts that have considered this issue have concluded that this is an issue of fact for a jury to decide. See Order, United States v. Carson, 2011 WL 5101701, No. 09-cr-77 (C.D. Cal. May 18, 2011), ECF No.

373[hereinafter United States v. Carson]; United States v. Aguilar, 783 F. Supp. 2d 1108 (C.D. Cal. 2011); Order, United States v. Esquenazi, supra note 44, ECF No. 309; see also Order, United States v. O’Shea, No.

09-cr-629 (S.D. Tex. Jan. 3, 2012), ECF No. 142; Order, United States v. Nguyen, No. 08-cr-522 (E.D. Pa. Dec. 30, 2009), ECF No. 144. These district court decisions are consistent with the acceptance by district courts around the country of over 35 guilty pleas by individuals who admitted to violating the FCPA by bribing officials of state-owned or state-controlled entities. See Government’s Opposition to Defendants’ Amended Motion to Dismiss Counts One Through Ten of the Indictment at 18, United States v. Carson, supra note 119, ECF No. 332; Exhibit I, United States v. Carson, supra note 119, ECF No. 335 (list of examples of enforcement actions based on foreign officials of state-owned entities).

120Jury Instructions, United States v. Esquenazi, supra note 44, ECF No. 520; Order at 5 and Jury Instructions, United States v. Carson, supra note 119, ECF No. 373 and ECF No. 549; Aguilar, 783 F. Supp. 2d at 1115.

121Criminal Information, United States v. C.E. Millier Corp., et al.,

No. 82-cr-788 (C.D. Cal. Sept. 17, 1982), available at http://www. justice.gov/criminal/fraud/fcpa/cases/ce-miller/1982-09-17-ce-miller- information.pdf.

122 See Complaint, SEC v. Sam P. Wallace Co., Inc., et al., No. 81-cv- 1915 (D.D.C. Aug. 31, 1982); Criminal Information, United States v. Sam P. Wallace Co., Inc., No. 83-cr-34 (D.P.R. Feb. 23, 1983), available at http://www.justice.gov/criminal/fraud/fcpa/cases/sam-wallace- company/1983-02-23-sam-wallace-company-information.pdf; see also Criminal Information, United States v. Goodyear Int’l Corp., No. 89- cr-156 (D.D.C. May 11, 1989) (Iraqi Trading Company identified as “instrumentality of the Government of the Republic of Iraq”), available at http://www.justice.gov/criminal/fraud/fcpa/cases/goodyear/1989- 05-11-goodyear-information.pdf.

123 See Complaint, SEC v. ABB, supra note 48; Criminal Information at 3, United States v. ABB Inc., No. 10-cr-664 (S.D. Tex. Sept. 29, 2010), ECF No. 1 [hereinafter United States v. ABB], available at http:// www.justice.gov/criminal/fraud/fcpa/cases/abb/09-20-10abbinc-info. pdf; Constitución Política de los Estados Unidos Mexicanos [C.P.], as amended, art. 27, Diario Oficial de la Federación [DO], 5 de Febrero de 1917 (Mex.); Ley Del Servicio Publico de Energia Electrica, as amended, art. 1-3, 10, Diario Oficial de la Federación [DO], 22 de Diciembre de 1975 (Mex.).

124See Indictment at 2, United States v. Esquenazi, supra note 44, ECF No. 3; Affidavit of Mr. Louis Gary Lissade at 1-9, id., ECF No. 417-2.

125Criminal Information at 30-31, United States v. Alcatel-Lucent France, supra note 56, ECF No. 10.

126Id.

127See International Anti-Bribery and Fair Competition Act of 1998, Pub. L. 105-366 § 2, 112 Stat. 3302, 3303, 3305, 3308 (1998).

128Section 30A(F)(1)(B) of the Exchange Act, 15 U.S.C. § 78dd-1(f )(1) (B); 15 U.S.C. §§ 78dd-2(h)(2)(B), 78dd-3(f )(2)(B).

129Third parties and intermediaries themselves are also liable for FCPA violations. Section 30A(a) of the Exchange Act, 15 U.S.C. § 78dd-1(a);

15U.S.C. §§ 78dd-2(a), and 78dd-3(a).

130Section 30A(a)(3) of the Exchange Act, 15 U.S.C. § 78dd-1(a)(3); 15 U.S.C. §§ 78dd-2(a)(3), 78dd-3(a)(3).

131See, e.g., Complaint, SEC v. Johnson & Johnson, No. 11-cv-686 (D.D.C. Apr. 8, 2011) [hereinafter SEC v. Johnson & Johnson] (bribes paid through Greek and Romanian agents)), available at http://www.sec.

gov/litigation/complaints/2011/comp21922.pdf; Criminal Information, United States v. DePuy, Inc., No. 11-cr-99 (D.D.C. Apr. 8, 2011), ECF No. 1 [hereinafter United States v. DePuy] (bribes paid through Greek agents), available at http://www.justice.gov/criminal/fraud/fcpa/cases/ depuy-inc/04-08-11depuy-info.pdf; Complaint, SEC v. ABB, supra note 48 (bribes paid through Mexican agents); Criminal Information, United States v. ABB, supra note 123 (same); Criminal Information, United States v. Int’l Harvester Co., No. 82-cr-244 (S.D. Tex. Nov. 17, 1982) (bribes paid through Mexican agent), available at http://www.justice. gov/criminal/fraud/fcpa/cases/international-harvester/1982-11-17- international-harvester-information.pdf.

132 See Criminal Information, United States v. Marubeni Corp., No. 12- cr-22 (S.D. Tex. Jan. 17, 2012), ECF No. 1 [hereinafter United States v. Marubeni], available at http://www.justice.gov/criminal/fraud/fcpa/ cases/marubeni/2012-01-17-marubeni-information.pdf; Criminal Information, United States v. JGC Corp., supra note 60, ECF No. 1; Criminal Information, United States v. Snamprogetti, supra note 60, ECF No. 1; Complaint, SEC v. ENI, S.p.A. and Snamprogetti Netherlands B.V., No. 10-cv-2414 (S.D. Tex. July 7, 2010), ECF No. 1, available at http://www.sec.gov/litigation/complaints/2010/comp-pr2010-119.pdf; Criminal Information, United States v. Technip S.A., No. 10-cr-439 (S.D. Tex. June 28, 2010), ECF No. 1 [hereinafter United States v. Technip], available at http://www.justice.gov/criminal/fraud/fcpa/cases/technip- sa/06-28-10-technip-%20information.pdf; Complaint, SEC v. Technip, No. 10-cv-2289 (S.D. Tex. June 28, 2010), ECF No. 1 [hereinafter SEC v. Technip], available at http://www.sec.gov/litigation/complaints/2010/ comp-pr2010-110.pdf; Indictment, United States v. Tesler, supra note 50; Complaint, SEC v. Halliburton and KBR, supra note 90; Criminal Information, United States v. KBR, supra note 90; Criminal Information, United States v. Stanley, No. 08-cr-597 (S.D. Tex. Sept. 3, 2008), ECF No. 1, available at http://justice.gov/criminal/fraud/fcpa/cases/stanleya/08- 29-08stanley-info.pdf.

133 See Criminal Information, United States v. AGA Medical Corp., No. 08-cr-172, ECF No. 1 (D. Minn. June 3, 2008), available at http://www. justice.gov/criminal/fraud/fcpa/cases/agamedcorp/06-03-08aga-info. pdf.

134 Complaint, SEC v. Innospec, supra note 79; Criminal Information,

United States v. Innospec, supra note 79; Superseding Criminal Information, United States v. Naaman, supra note 50, ECF No. 15, available at http://www.justice.gov/criminal/fraud/fcpa/cases/ naamano/06-24-10naaman-supsersed-info.pdf; Complaint, SEC v. Turner, supra note 50.

135See sources cited supra note 68.

136See sources cited supra note 68.

137Section 30A(a)(3) of the Exchange Act, 15 U.S.C. § 78dd-1(a)(3); 15 U.S.C. §§ 78dd-2(a)(3), 78dd-3(a)(3).

ENDIX notes

138See Section 30A(f )(2)(A) of the Exchange Act, 15 U.S.C. § 78dd-1(f ) (2)(A); 15 U.S.C. §§ 78dd-2(h)(3)(A), 78dd-3(f )(3)(A).

139See Section 30A(f )(2)(B) of the Exchange Act, 15 U.S.C. § 78dd-1(f ) (2)(B); 15 U.S.C. §§ 78dd-2(h)(3)(B), 78dd-3(f )(3)(B). The “knowing” standard was intended to cover “both prohibited actions that are taken with ‘actual knowledge’ of intended results as well as other actions

that, while falling short of what the law terms ‘positive knowledge,’ nevertheless evidence a conscious disregard or deliberate ignorance of known circumstances that should reasonably alert one to the high

probability of violations of the Act.” H.R. Rep. No. 100-576, at 920; see also Omnibus Trade and Competitiveness Act of 1988, Pub. L. No. 100418, § 5003, 102 Stat. 1107, 1423-24 (1988).

140H.R. Rep. No. 100-576, at 920 (1988).

141Section 30A(c)(1) of the Exchange Act, 15 U.S.C. § 78dd-1(c)(1); 15 U.S.C. §§ 78dd-2(c)(1), 78dd-3(c)(1).

142H.R. Rep. No. 100-576, at 922. The conferees also noted that “[i]n interpreting what is ‘lawful under the written laws and regulations’ . . . the normal rules of legal construction would apply.” Id.

143See United States v. Kozeny, 582 F. Supp. 2d 535, 537-40 (S.D.N.Y. 2008). Likewise, the court found that a provision under Azeri law that relieved bribe payors of criminal liability if they were extorted did not make the bribe payments legal. Azeri extortion law precludes the

prosecution of the payor of the bribes for the illegal payments, but it does not make the payments legal. Id. at 540-41.

144Section 30A(c)(2)(A), (B) of the Exchange Act, 15 U.S.C. § 78dd-1(c) (2); 15 U.S.C. §§ 78dd-2(c)(2), 78dd-3(c)(2).

145For example, the Eighth Circuit Court of Appeals found that providing airline tickets to a government official in order to corruptly influence that official may form the basis for a violation of the FCPA’s anti-bribery provisions. See Liebo, 923 F. 2d at 1311-12.

146See generally U.S. Dept. of Justice, FCPA Op. Release 11-01

(June 30, 2011) (travel, lodging, and meal expenses of two foreign officials for two-day trip to United States to learn about services of U.S. adoption service provider), available at http://www.justice.gov/criminal/ fraud/fcpa/opinion/2011/11-01.pdf; U.S. Dept. of Justice, FCPA Op. Release 08-03 (July 11, 2008) (stipends to reimburse minimal travel expenses of local, government-affiliated journalists attending press conference in foreign country), available at http://www.justice.gov/ criminal/fraud/fcpa/opinion/2008/0803.pdf; U.S. Dept. of Justice, FCPA Op. Release 07-02 (Sept. 11, 2007) (domestic travel, lodging, and meal expenses of six foreign officials for six-week educational program), available at http://www.justice.gov/criminal/fraud/fcpa/ opinion/2007/0702.pdf; U.S. Dept. of Justice, FCPA Op. Release 07-01 (July 24, 2007) (domestic travel, lodging, and meal expenses

of six foreign officials for four-day educational and promotional tour of U.S. company’s operations sites), available at http://www.justice. gov/criminal/fraud/fcpa/opinion/2007/0701.pdf; U.S. Dept. of Justice, FCPA Op. Release 04-04 (Sept. 3, 2004) (travel, lodging, and modest per diem expenses of five foreign officials to participate in nine-day study tour of mutual insurance companies), available at http://www.justice.gov/criminal/fraud/fcpa/opinion/2004/0404. pdf; U.S. Dept. of Justice, FCPA Op. Release 04-03 (June 14, 2004) (travel, lodging, meal, and insurance expenses for twelve foreign officials and one translator on ten-day trip to three U.S. cities to meet with U.S. public sector officials), available at http://www.justice.gov/

criminal/fraud/fcpa/opinion/2004/0403.pdf; U.S. Dept. of Justice, FCPA Op. Release 04-01 (Jan. 6, 2004) (seminar expenses, including receptions, meals, transportation and lodging costs, for one-and-a-half day comparative law seminar on labor and employment law in foreign country), available at http://www.justice.gov/criminal/fraud/fcpa/ opinion/2004/0401.pdf; U.S. Dept. of Justice, FCPA Op. Release

96-01 (Nov. 25, 1996) (travel, lodging, and meal expenses of regional government representatives to attend training courses in United States), available at http://www.justice.gov/criminal/fraud/fcpa/ opinion/1996/9601.pdf; U.S. Dept. of Justice, FCPA Op. Release 92-01 (Feb. 1992) (training expenses so that foreign officials could effectively perform duties related to execution and performance of jointventure agreement, including seminar fees, airfare, lodging, meals, and ground transportation), available at http://www.justice.gov/criminal/ fraud/fcpa/review/1992/r9201.pdf.

147U.S. Dept. of Justice, FCPA Op. Release 11-01 (June 30, 2011); U.S. Dept. of Justice, FCPA Op. Release 07-02 (Sept. 11, 2007); U.S. Dept. of Justice, FCPA Op. Release 07-01 (July 24, 2007); U.S. Dept. of Justice, FCPA Op. Release 04-04 (Sept. 3, 2004); U.S. Dept. of Justice, FCPA Op. Release 04-03 (June 14, 2004); U.S. Dept. of Justice, FCPA Op. Release 04-01 (Jan. 6, 2004).

148U.S. Dept. of Justice, FCPA Op. Release 96-01 (Nov. 25, 1996).

149U.S. Dept. of Justice, FCPA Op. Release 11-01 (June 30, 2011); U.S. Dept. of Justice, FCPA Op. Release 07-02 (Sept. 11, 2007); U.S. Dept. of Justice, FCPA Op. Release 07-01 (July 24, 2007); U.S. Dept. of Justice, FCPA Op. Release 04-04 (Sept. 3, 2004); U.S. Dept. of Justice, FCPA Op. Release 04-01 (Jan. 6, 2004) .

150U.S. Dept. of Justice, FCPA Op. Release 04-01 (Jan. 6, 2004).

151U.S. Dept. of Justice, FCPA Op. Release 08-03 (July 11, 2008).

152U.S. Dept. of Justice, FCPA Op. Release 11-01 (June 30, 2011); U.S. Dept. of Justice, FCPA Op. Release 92-01 (Feb. 1992).

153U.S. Dept. of Justice, FCPA Op. Release 08-03 (July 11, 2008).

154Id.

155Id.; U.S. Dept. of Justice, FCPA Op. Release 04-03 (June 14, 2004); U.S. Dept. of Justice, FCPA Op. Release 04-01 (Jan. 6, 2004); U.S. Dept. of Justice, FCPA Op. Release 07-01 (July 24, 2007).

156U.S. Dept. of Justice, FCPA Op. Release 11-01 (June 30, 2011); U.S. Dept. of Justice, FCPA Op. Release 07-02 (Sept. 11, 2007); U.S. Dept. of Justice, FCPA Op. Release 07-01 (July 24, 2007); U.S. Dept. of Justice, FCPA Op. Release 04-04 (Sept. 3, 2004); U.S. Dept. of Justice, FCPA Op. Release 04-03 (June 14, 2004); U.S. Dept. of Justice, FCPA Op. Release 04-01 (Jan. 6, 2004).

157U.S. Dept. of Justice, FCPA Op. Release 07-01 (July 24, 2007); U.S. Dept. of Justice, FCPA Op. Release 08-03 (July 11, 2008).

158For example, DOJ has previously approved expenditures on behalf of family members or for entertainment purposes under certain, limited circumstances. See, e.g., U.S. Dept. of Justice, FCPA Rev. P. Release 83-02 (July 26, 1983) (declining to take enforcement action against company seeking to provide promotional tour for foreign official and wife, where both had already planned a trip to the United States at their own expense and company proposed to pay only for all reasonable and necessary actual domestic expenses for the extension of their travel to allow the promotional tour, which would not exceed $5,000), available at

http://www.justice.gov/criminal/fraud/fcpa/review/1983/r8302.pdf.

159Unlike the local law and bona fide expenditures defenses, the facilitating payments exception is not an affirmative defense to the FCPA. Rather, payments of this kind fall outside the scope of the FCPA’s bribery prohibition. Prior to 1988, the “facilitating payments” exception was incorporated into the definition of “foreign official,” which excluded from the statute’s purview officials whose duties were primarily ministerial or clerical. See Foreign Corrupt Practices Act of 1977, Pub. L. No. 95-213, § 104(d)(2), 91 Stat. 1494, 1498 (1977) (providing that the term foreign official “does not include any employee of a foreign government or any department, agency, or instrumentality thereof whose duties are essentially ministerial or clerical”). The original exception thus focused on the duties of the recipient, rather than the purpose of the payment. In practice, however, it proved difficult to determine whether a foreign official’s duties were “ministerial or clerical.” S. Rep. No. 10085, at 53. Responding to criticism that the statutory language “does not clearly reflect Congressional intent and the boundaries of the prohibited conduct,” Congress revised the FCPA to define the exception in terms of

the purpose of the payment. H. Rep. No. 100-40, pt. 2, at 77. In doing so, Congress reiterated that while its policy to exclude facilitating payments reflected practical considerations of enforcement, “such payments should not be condoned.” Id. The enacted language reflects this narrow purpose.

160In exempting facilitating payments, Congress sought to distinguish them as “payments which merely move a particular matter toward an

eventual act or decision or which do not involve any discretionary action,” giving the examples of “a gratuity paid to a customs official to speed the processing of a customs document” or “payments made to secure permits, licenses, or the expeditious performance of similar duties of an essentially ministerial or clerical nature which must of necessity be performed in any event.” H.R. Rep. No. 95-640, at 8.

161Section 30A(f )(3)(B) of the Exchange Act, 15 U.S.C. § 78dd-1(f )(3) (B); 15 U.S.C. §§ 78dd-2(h)(4)(B), 78dd-3(f )(4)(B).

162In a 2004 decision, the Fifth Circuit emphasized this precise point, commenting on the limited nature of the facilitating payments exception: A brief review of the types of routine governmental

actions enumerated by Congress shows how limited Congress wanted to make the grease exceptions. Routine governmental action, for instance, includes “obtaining permits, licenses, or other official documents to qualify a person to do business in

a foreign country,” and “scheduling inspections associated with contract performance or inspections related to transit of goods across country.” Therefore, routine governmental action does not include the issuance of every official document or

every inspection, but only (1) documentation that qualifies a party to do business and (2) scheduling an inspection—very narrow categories of largely nondiscretionary, ministerial activities performed by midor low-level foreign functionaries.

United States v. Kay; 359 F.3d 738, 750-51 (5th Cir. 2004) (internal footnote omitted) (emphasis in original).

163 Non-Pros. Agreement, In re Helmerich & Payne, Inc. (July 29, 2009) [hereinafter In re Helmerich & Payne], available at http://www.justice. gov/criminal/fraud/fcpa/cases/helmerich-payne/06-29-09helmerich- agree.pdf; Admin. Proceeding Order, In the Matter of Helmerich & Payne, Inc., Exchange Act Release No. 60400 (July 30, 2009) [hereinafter

In the Matter of Helmerich & Payne], available at http://www.sec.gov/ litigation/admin/2009/34-60400.pdf.

164 Criminal Information, Vetco Gray Controls Inc., et al., No. 07- cr-4 No. (S.D. Tex. Jan. 5, 2007), ECF Nos. 1-2, available at http:// www.justice.gov/criminal/fraud/fcpa/cases/vetco-controls/02-06- 07vetcogray-info.pdf.

165 Complaint, SEC v. Noble Corp., No. 10-cv-4336 (S.D. Tex. Nov. 4, 2010), ECF No. 1, available at http://www.sec.gov/litigation/ complaints/2010/comp21728.pdf; Non-Pros. Agreement, In re Noble Corp. (Nov. 4, 2010), available at http://www.justice.gov/criminal/ fraud/fcpa/cases/noble-corp/11-04-10noble-corp-npa.pdf; see also sources cited supra note 68.

166 Working Group on Bribery, 2009 Recommendation of the Council for Further Combating Bribery of Foreign Public Officials in International Business Transactions, at § VI (recommending countries should periodically review their policies and approach to facilitation payments and should encourage companies to prohibit or discourage facilitation payments “in view of the corrosive effect of small facilitation payments, particularly on sustainable economic development and the rule of law”); Working Group on Bribery, United States: Phase 3, at 24 (Oct. 15, 2010), available at http://www.oecd.org/dataoecd/10/49/46213841. pdf (commending United States for steps taken in line with 2009 recommendation to encourage companies to prohibit or discourage facilitation payments).

167 Facilitating payments are illegal under the U.K. Bribery Act 2010, which came into force on July 1, 2011, and were also illegal under prior U.K. legislation. See Bribery Act 2010, c.23 (Eng.), available at http://www.legislation.gov.uk/ukpga/2010/23/contents; see also

U.K. Ministry of Justice, The Bribery Act 2010: Guidance About Procedures Which Relevant Commercial Organisations Can Put into Place to Prevent Persons Associated with Them from Bribing (Section 9 of the Bribery Act 2010), at 18 (2011), available at http://www.justice.gov.uk/ guidance/docs/bribery-act-2010-guidance.pdf.

168See, e.g., Non-Pros. Agreement, In re Helmerich & Payne, supra note 163; Admin. Proceeding Order, In the Matter of Helmerich & Payne, supra note 163.

169In order to establish duress or coercion, a defendant must demonstrate that the defendant was under unlawful, present, immediate, and impending threat of death or serious bodily injury; that the defendant did