The Foreign Corrupt Practices Act (FCPA) is a federal law that was established to prohibit individuals and companies alike from engaging in illegal or corrupt practices in business dealings with foreign entities, officials, or organizations.
It’s unlawful for any American individual or business entity to make a corrupt payment to any foreign business or official for the purpose of securing business. An FCPA defense attorney in Houston can help you.
Any company that trades publicly in the United States is required to maintain an accurate internal count of their records to ensure they are compliant with FCPA regulations. If they fail to maintain these records for any reason, they may violate these regulations. Book and record violations may be considered separate offenses alongside anti-bribery provisions.
At Hilder & Associates, P.C., we provide sophisticated, strategic defense for individuals and corporations caught in the crosshairs of FCPA investigations. Led by Philip Hilder, a former federal prosecutor with deep experience in white-collar and international criminal defense, our firm is known for handling high-profile, high-stakes cases with discretion, precision, and results.
If you or your business is under FCPA scrutiny, call us now at 713-655-9111 to schedule a confidential consultation. Early legal intervention is critical.
Violating FCPA Regulations
If you are found to be violating FCPA regulations, you could end up facing serious penalties, including substantial fines and reputational damage that may never be undone. The last thing you want is to find yourself dealing with the downfall of your company because you were found guilty of violating federal FCPA regulations. The right lawyer can help you figure out the appropriate way forward for your case and ensure that you can defend yourself.
There are many ways you could be found guilty of violating FCPA regulations. You may not be aware of some violations, but you could still be found guilty of committing them. Largely, any actions taken to influence a foreign official’s decision regarding your business in an unethical, immoral, or illegal way could be considered a violation of the FCPA. These violations may include multiple actions, such as the following:
Bribery
One of the most common forms of FCPA violation is bribery. Bribery is the act of offering somebody something of value in exchange for performing an action that benefits you. In the world of global business contracts, bribery may take many forms.
For a payment to a foreign official to be considered a bribe, there must be a clear intent for the bribe’s recipient to misuse their position to wrongfully conduct business. The payment doesn’t even need to succeed. Whether a payment is considered a bribe or a grease payment should also be addressed.
Third Parties
Many times, to hide the true nature of their business dealings, individuals and companies alike may arrange a bribe or kickback through a third party. This third party is generally a shell company or consultant who secretly funnels bribe payments to the intended recipient, thus allowing the original party to have no obvious involvement in the action. Regardless of how the bribe is made, it may still be considered an FCPA violation.
Concealment
Most of the time, bribes are not openly given, and they are not listed in accounting records. Bribes are typically concealed, as the act itself violates FCPA regulations and is illegal. Companies that engage in fraudulent business practices are often also engaged in fraudulent accounting practices to conceal bribery. This may also be seen as a violation of FCPA regulations.
Failure to Maintain Records
Every business around the world must maintain accurate records of transactions, payments, and other business practices. Otherwise, their records would be chaotic, and it would be next to impossible to do business. Failure to maintain accurate records of business practices may be seen as a violation or at least a sign that they may be trying to conceal something.
Defenses Against an FCPA Violation
Though it is strictly illegal to bribe a foreign official to help with your business, there are multiple defenses you may use to defend yourself against such charges. The right lawyer can help you put together a strong defense with one or more of the following possible options:
· Local Law Defense
If you attempt to use the Local Law Defense, your lawyer will need to prove that while the payment in question may be considered an illegal bribe under United States law, it is completely legal under the written laws of the foreign country in which it was made. To use this defense, you will need to prove the legality of that payment under the country’s specific laws. It is not sufficient to show that the country lacks strong anti-corruption laws.
· Legitimate Business Expenditures
This defense focuses on the exact nature of the payment in question and its connection to legitimate business efforts. The payment must be directly related to a business expense, such as travel, meals, entertainment, or other legitimate services related to conducting business.
· Payment Facilitation
This defense applies to payments made to expedite routine actions from foreign governments, such as permit fees or paperwork processing fees. This does not apply to payments made to influence governmental decisions or gain an undue advantage over other companies by bribing a foreign official.
Speak with a Proven FCPA Defense Attorney Today
In the past decade, Hilder & Associates, P.C. has represented countless individuals who have been accused of violating FCPA regulations or have been targeted by the federal government on suspicion of violating said regulations. Every situation is unique, but you should work with someone who has a proven track record of handling cases similar to yours in the past.
Our team of white collar crime lawyers can help you put together a solid defense strategy. Our Houston FCPA lawyers can guide you in responding to allegations, developing an effective compliance response, and addressing potential penalties.
You may have to face multiple agencies at once, such as the Justice Department and the SEC. The team at Hilder & Associates, P.C. can help you protect your company’s reputation and ensure your compliance with the FCPA. Reach out to us at 713-655-9111 to learn more and schedule a free consultation.
Once you engage our legal team, you can rest assured that you will get the quality legal representation you deserve. We can help you explore the full extent of your legal options.
