Saturday, October 24, 2020

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Disregard Compliance at Your Peril: Compliance Officer Paid As Whistleblower

Medical device manufacturer Merit Medical Systems has paid $18 million to settle a False Claims Act lawsuit brought by its own former compliance officer. DOJ alleged that Merit’s “Local Advertising Program” was a front for illegal kickbacks to healthcare providers. The program offered millions of dollars in purported educational grants and other support designed to […]
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Companies Raise Inability-to-Pay Claims Amid Pandemic, Justice Department Official Says

The COVID-19 pandemic has provided a new way for the targets of criminal fraud prosecution to claim an inability to pay fines: the pandemic-related recession. However, Brian Rabbitt, the acting assistant attorney general in charge of the criminal division, says DOJ isn’t deviating from its recent guidance on how prosecutors should handle such claims, and […]
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Brazil, Bribes, and Banks: Brazilian Investment Company Pays $265M Fine in FCPA SEC and...

Ropes & Gray identifies several key points about the J&F Investimentos case, in which the Brazilian meat-producing giant pled guilty and agreed to $265 million in fines: Anti-Corruption Enforcement Continues to Be a Global Affair: J&F settled with Brazilian authorities in May 2017 for $3.2 billion for related conduct, receiving partial credit from DOJ for […]
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The J&F FCPA Resolution

In the first of a series of blog posts, Tom Fox writes about the criminal Foreign Corrupt Practices Act action involving, J&F Investimentos SA, a Brazil-based investment company that owns and controls companies involved in multiple industries, including the meat and agriculture industry. More at FCPA Compliance Report
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With J&F, 2020 Becomes the Biggest Year in FCPA History

With J&F Investimentos paying $285 million to settle corruption charges, the FCPA has reached two milestones: 1) 2020 has already edged out 2019 as the largest year for FCPA settlements, with resolutions worth $2.94 billion, and 2) total penalties since the FCPA went into effect in 1977 now exceed $20 billion. For reference, the entire […]
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Actual Medical Necessity Irrelevant When Medicare Guidelines Not Followed; United States District Court for...

The district court mostly denied the defendants’ motion to dismiss the government’s complaint it violated the Anti-Kickback Statute and False Claims Act. The government...

DOL Needs to Improve Debarment Processes to Ensure Foreign Labor Program Violators are Held...

The Department needs to improve its debarment processes to ensure the full protection of U.S. and foreign workers and employers who followed laws and regulations and hold violators accountable. The DOL Office of Inspector General found: DOL has not fully used its H-1B investigation process to determine debarment. WHD cannot initiate investigations unless it receives […]
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Letting Third Parties Do the Dirty Work

Michael Volkov writes about a recurring strategy in which companies engage with a corrupt third party for the sole purpose of paying a bribe, citing the recent examples of Cognizant Technology, Sargeant Marine, and World Acceptance Corporation. “A company has to gain transparency into its supply chain and its channel partners to identify risky participants,” […]
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California University To Pay $225,000 For Allegedly Violating Ban On Incentive Compensation

San Diego Christian College, a small evangelical school in the suburb of Santee, will pay $225,000 to resolve allegations it submitted false claims to the Department of Education. The charges related to a federal ban on incentive-based compensation for student recruiters, which incentivizes them to place their financial interests ahead of students’ educational needs. Between […]
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Meat Giant JBS’s Owner Settles U.S. Corruption Charges

J&F Investimentos of Brazil – which controls the world’s largest meatpacker, JBS SA – admitted to paying about $150 million in bribes to Brazilian politicians, and has now agreed to pay $128 million to settle the case. The Justice Department cut the penalty of $256.5 million in half to compensate for fines already paid to […]
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