United States Department Of Justice And The Securities And...

The United States Department of Justice and the Securities and Exchange Commission rarely enforced the Foreign Corrupt Practices Act, enacted in 1977, until 2010— over a decade since its modern reform in 1998. This surge in penalization of unethical acts such as bribery and other methods used to ensure foreign business ventures has been called a â€Å"new era of FCPA enforcement† by the DOJ, resulting in $1.8 billion in payments accrued from domestic firms and their foreign partners, compared to $300,000 in 2000 (Kohler). Because of ambiguity within the legislation, especially the undefined terms â€Å"foreign official† and â€Å"obtain or retain business,† the U.S. government is able to manipulate the FCPA for monetary gain, as well as shape foreign economies based upon their own values. The FCPA was composed with good intentions: to end corrupt trade and to create a more even playing field for American businesses. With that goal in mind, the Act is seemingly viewed as a normative standard to promote fairness, asserting that transparency and accountability are essential to building an honest and open global society. However the unclear articulation of the texts have developed inconsistencies in the way the FPCA is enforced, allowing organizations such as the SEC to utilize its broadness to target businesses, namely through the agencies’ interpretation of who a foreign official is and what it means to obtain or retain business. Firstly, according to the SEC, a foreign official is anyoneShow MoreRelatedForeign Corrupt Practices Act :836 Words   |  4 Pagescitizen of United State and certain foreign issuers of security and foreign companies. The Minor changes were made in the year 1988 and in 1998.Foreign Corrupt Practices Act has two main Provision (a)Accounting Transparency under Securities Exchange Commission, 1934. (b)Bribery of Foreign Officials. Department of Justice (DOJ)and Securities Exchange Commission(SEC) are responsible for enforcement of Foreign Corrupt Practices Act. Powerful influence of both Department of Justice and Securities ExchangeRead MoreThe Foreign Corrupt Practices Act1551 Words   |  7 Pagesforeign officials for the purpose of obtaining or keeping a business. The FCPA was enacted by congress in 1977 due to various reports that were made by the Security and Exchange Commission (SEC). The Security and Exchange Commission (SEC) reported different issues concerning bribery and illegal payments by United Sates companies. The FCPA states that it’s unlawful to make payments to foreign officials; having a corrupt intend that will make a foreign official to misuse his or her position in directingRead MoreThe Scandal Of Healthsouth Corporation Scandal1419 Words   |  6 Pagescorporation participation in actions during a scandal are corrupt, unethical, and illegal. In the United States, the Securities and Exchange Commission (SEC) is typically the government agency that investigates such scandals. One of the most notorious corporate accounting scandals in the United States is the HealthSouth Corporation scandal of 2003. HealthSouth Corporation is one of the United States largest healthcare providers with locations nationwide. A deeper inspection of the HealthSouth scandalRead MoreThe Scandal Of Healthsouth Corporation Scandal1391 Words   |  6 Pagesexecutives of the corporation participation in actions during a scandal are corrupt and illegal. In the United States, the Securities and Exchange Commission (SEC) is typically the government agency that investigates such scandals. One of the most notorious corporate accounting scandals in the United States is the HealthSouth Corporation scandal of 2003. HealthSouth Corporation is one of the United States largest health care providers with locations nationwide. A deeper inspection of the HealthSouth scandalRead MoreDeutsche Bank : A Leading Client Centric Global Universal Bank Essay1629 Words   |  7 Pagesfined a multitude of times. In 2002 the Security Exchange Commission, the New York Stock Exchan ge and National Association of Securities Dealers (who are now known as FINRA) issued Deutsche Bank in total of $1.65 million for noncompliance to observe the requirements relating to the storage of email archives so that they may be reviewed and examined by authorities (Financial Industry Regulatory Authority, FINRA.ORG). In 2003 the security exchange commission fined Deutsche Bank $750,000 due to a violationRead MoreStopping Fraud and Illegal Activities in Organizations that Conduct Their Business Internationally1415 Words   |  6 Pagesa few acts and documents that have been enabled. The Foreign Corrupt Practices Act (FCPA) is a law that congress primarily passed in 1977. This act prohibits businesspersons from bribing foreign officials to secure advantageous contracts. The United States also regulates payments to foreign officials. Giving cash or kind benefits to foreign government officials to obtain business contracts and other favors, this is actually often considered a no rmal practice to do. To reduce such bribery among representativesRead MoreEssay On Foreign Corrupt Practices Act1323 Words   |  6 PagesForeign Corrupt Practices Act (FCPA) was enacted in 1977 to control widespread bribery of foreign officials. Foreign officials are being bribed by United States companies to win business with them. The Foreign Corrupt Practices Act is enforced by the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC). The Department of Justice has a special unit call FCPPA that is within the Criminal Division’s Fraud Section. They have criminal enforcement authority of the business issuingRead MoreThe Black Diamond Ponzi Scheme904 Words   |  4 Pageseleven individuals and a few companies linked to the Black Diamond Ponzi Scheme. According to an U.S. Commodity Futures Trading Commission complaint, Deanna Ray Salazar and her companies Life Plus Group, LLC and Black Diamond Holdings, LLC worked closely with Keith Simmons to make the Ponzi scheme expand (U.S.C.F.T.C, 2015). According to the United States Department of Justice, Federal Bureau of Investigation, Deanna Salazar is 55 year-old woman from Yucca Valley, California (FBI, 2013). Salazar is theRead MoreMain Provisions Of The Foreign Corrupt Policy Act1473 Words   |  6 Pagesof President Jimmy Carter an d is codified at 15 U.S.C. Sections 78-dd-1 et. seq.. During the 1970s the Security and Exchange Commission (SEC) commenced numerous investigations of American businesses and their questionable payments to foreign governmental officials. As a result of these investigations, the Foreign Corrupt Policy Act was proposed. The SEC is the equivalent to police departments, but for corporations. The FCPA was enacted as legislation so as to prevent American corporations from bribingRead MoreWhite Collar Crime: Ponzi Scheme with a Focus on Bernard Madoff1652 Words   |  7 Pagestype of investment scheme, and Bernard Madoff. Madoff is probably one of the most known offenders when it comes to the Ponzi scheme. The U.S. Securities and Exchange Commission (SEC) defines a Ponzi scheme as â€Å"an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors† (U.S. Securities, n.d.). In another words, a person gains the trust of people and asks them to invest money into opportunities that this person claims will produce