Smaller Businesses are Vulnerable to FCPA Penalties and Sanctions

FARMINGTON, Conn. - June 24, 2013 - PRLog -- The Foreign Corrupt Practices Act (FCPA) has seen an exponential increase in the number of cases being investigated by the Department of Justice (DOJ) and the Securities & Exchange Commission (SEC) in recent years.  The law was passed in 1977, but minimally enforced until recently.  Since 2007, the number of cases being opened has exceeded those in the first 30 years combined.

High-profile cases, such as Walmart and Avon, have attracted attention recently.  Both companies are estimated to have spent over $250 million on legal and professional fees to investigate and attempt to resolve FCPA matters.  But the anti-bribery law applies to all U.S. entities and individuals, and some foreigners as well.  Recently. a number of investigations involving small-to-medium size businesses have been initiated.  And liability for U.S. entities can be inferred from the actions of overseas officers and agents.

“Any firm or individual doing business abroad needs to have an effective policy in place to comply with the FCPA,” says Terry Caldemeyer, an attorney with International Legal Services, a law firm specializing in FCPA matters.  “The sanctions and penalties for firms and individuals can be severe, including civil and criminal fines and jail sentences,” according to Caldemeyer.  In addition, companies can lose their right to do business with agencies of the U.S. government, and possibly to export goods.

Starting in 2011 the DOJ & SEC appear to have begun targeting small firms and individuals. Late that year, in Miami, two individuals, Joel Esquenazi and Carlos Rodriguez were found guilty of bribing officials in Haiti, and ordered to pay over $3 million.  In addition, Esquenazi was sentenced to 15 years in prison, and Rodriguez to seven years.

Caldemeyer, whose firm provides negotiated, flat-fee packages to clients nationwide, emphasizes that the cost of designing and implementing an efficient and effective program to ensure compliance with the FCPA can be a relatively small amount of money well spent, as the DOJ and SEC often look positively at actions taken by companies to monitor and avoid corrupt activities.  For more information about International Legal Services and its FCPA Compliance services, please visit:  http://www.fcpa-law.com.

About International Legal Services

Terry Caldemeyer is an attorney specializing in FCPA Compliance Audits and other FCPA matters.  He is with International Legal Services in Farmington, CT.  They provide FCPA compliance services to companies around the country.  He can be reached at:  terry@fcpa-law.com or 800-824-7912.  http://www.fcpa-law.com.

Contact:
Terry Caldemeyer, Esq.
Tel:  800-995-4422
terry@fcpa-law.com