Author: Joshua L. Ray 2 September 2021
Rahman Ravelli’s Joshua Ray has had his in-depth analysis of US Foreign Corrupt Practices Act (FCPA) enforcement published by the New York University Journal of Law and Business.
In his 66-page article, “The Continuing Façade of FCPA Enforcement: A Critical Look at the Telia DPA’’, Josh examines in detail the theory put forward by Professor Mike Koehler.
Professor Koehler has argued that most FCPA allegations are resolved through private negotiation, which leads companies to accept liability for charges – some of which may be weak or unsupported – in order to bring an end to the investigation. Professor Koehler calls this the façade of enforcement, and says it prompts many companies to base their compliance policies on the resolution of FCPA investigations; even though those resolutions may not be based on the evidence available or proper interpretation of the Act.
In his analysis, Josh focuses on the 2017 deferred prosecution agreement (DPA) that was concluded between the US Department of Justice and the Swedish telecommunications firm Telia Company AB. The DPA was notable because the facts at the heart of it were subject to challenge in the Swedish courts and because the company released the full details of an investigative report it had commissioned into the allegations.
Josh argues that the Telia case appears to be a clear example of a company accepting a DPA based on largely unsupported allegations in order to bring it to a swift end, for business reasons. Such settlements, he says, do not match either the facts available or the law and can have potentially negative consequences.
Josh's article can be accessed by following this link.
Joshua Ray represents individuals and corporates in complex investigations, prosecutions and regulatory actions regarding market manipulation and multijurisdictional matters involving fraud, bribery and money laundering.