Thursday, February 6, 2014 | 11:30 AM - 12:30 PM

Speakers:Dan Boylan, Kelvin Dickenson, Paul Pelletier, Hillary Rosenberg

FCPA Enforcement Enters the Banks

The key elements of a good anti-corruption program for financial institutions and others

MemberMintz, Levin, Cohn, Ferris, Glovsky & Popeo

Washington, DC

Paul Pelletier

Senior Vice President and Audit DirectorBank of America

Charlotte

Dan Boylan, CFCS

Global Risk Management SolutionsD&B

New York

Kelvin Dickenson

CounselLewis Baach

New York

Hillary Rosenberg

MemberMintz, Levin, Cohn, Ferris, Glovsky & Popeo

Washington, DC

Paul Pelletier

DOJ and SEC Announce Financial Institution Focus

• 2008 - Fraud Section Chief Tyrrell noted "boom of sovereign wealth funds (SWFs) is area at top of Justice Department's hit list“

• 2011 - WSJ reported SEC sought documents from 10 financial institutions, PE funds related to dealings with sovereign wealth funds

• 2011 - FINRA issued guidance to issuers regarding their FCPA obligations

United States v. Garth Peterson (EDNY 2012)• DOJ/EDNY criminal prosecution of Morgan Stanley Managing

Director in Singapore

• Transferred interest in Chinese RE deal secretly to himself and Chinese official thru shell company

• Peterson convinced MS that Chinese government entity was acquiring interest in transaction

• Petersen, Chinese official would receive bribes thru equity distributions via shell company

• Petersen pled guilty to conspiring to evade MS' accounting controls

United States v. Maria Gonzalez, et al. (SDNY 2013)

• DOJ/SDNY criminal prosecution of employees of Miami broker/dealer, VZ bank official

• 3 Miami BD employees paid millions of dollars in "kickbacks" to VZ Banking official, who directed bond trades toward Miami BD

• Bribe payments made to Swiss, Panamanian bank A/C via wire transfers, checks from Miami BOA A/C

• Activity first discovered during SEC BD exam

Diebold, Inc.• November 3013 Diebold entered into DPA

• Paid $48 million in fines, agreed to a compliance monitor for 18 months

• Separate settlement with SEC for books and records violations regarding bribes paid to officials of privately owned Russian banks

Barclays PLC

• August 2012 Barclays announced corruption investigation by SFO,DOJ,SEC

• Investigation involves use of 3rd parties to obtain banking license in Saudi Arabia

Sovereign Wealth Fund Investigations

• Jan. 2011 - WSJ reported SEC launched industry-wide investigation of US financial service firms for improper payments to SWFs

• 2012 - Goldman Sachs disclosed it was responding

to FCPA compliance inquiry

• WSJ reported SEC investigating Goldman's relationship with LIA, possible offer of payment of a $50 million fee

Whistleblower Risk

• 2013 - SEC says they received 3328 tips

• Nov. 2013 – In report to Congress, SEC says tips are increasing

• Some firms alleged to be cold calling employees at financial institutions

NCR

• Nov 2013 NCR disclosed it made a presentation to DOJ/SEC re: a whistleblower's allegations of FCPA violations in China

• WSJ reported FCPA investigation involves NCR paying for travel, hotel expenses for "training event" for 60 employees of Chinese Bank

• WSJ had access to internal emails provided by "tipster"

Your Questions

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