Criminal Defense Lawyers

FCPA Violation Overview

Last Updated on: 31st March 2025, 01:04 am

FCPA VIOLATION OVERVIEW

We are Spodek Law Group, a premier, and award winning, New York / Federal criminal defense law firm, created by Todd Spodek. If you’re on our website, it’s probably because you’re worried about the Foreign Corrupt Practices Act (FCPA) and how it could upend your entire future. Let’s be very direct: if you violate the FCPA, you face serious criminal liability. Our job here is to help you understand the law, call out any nonsense you might be telling yourself, and push you to take the right steps. We won’t tolerate excuses—this law is too important, and the consequences are huge.

WHAT IS THE FCPA?

The FCPA is a federal law that bans bribing foreign officials to gain a business advantage. It also forces public companies to maintain honest accounting records and effective internal controls. If you’re caught bribing a minister or a government agent in another country—even if it’s through a third party—you might be indicted for violating the FCPA. The Department of Justice (DOJ) handles criminal enforcement, and the Securities and Exchange Commission (SEC) deals with civil enforcement. The DOJ can put you behind bars, and the SEC can bury you in crippling fines. This law applies to US individuals, businesses, and foreign companies that list their securities on US exchanges.

Sometimes, people assume you have to drop a suitcase of cash directly into a foreign official’s lap for it to count as bribery. That’s flat-out wrong. The FCPA covers anything of value—plane tickets, expensive meals, lavish gifts, or even paying off a foreign official’s children’s tuition. If the government believes you acted with corrupt intent, it doesn’t matter if you delivered the bribe personally or used a local consultant to pass along the money. You’re still on the hook.

WHY THIS MATTERS ANYWHERE YOU DO BUSINESS

You might be running a small manufacturing company in Middle America and think these laws only apply to giant corporations. That’s a huge mistake. The FCPA can target any US business or citizen that’s suspected of bribing overseas, or failing to keep accurate books if they’re a public entity. If your supply chain stretches into Asia, or your sales team travels to South America, you’re definitely in the crosshairs. The DOJ and SEC have been ramping up their efforts, coordinating with authorities abroad. They’re relentless. If you’re indicted, you face possible prison time plus mind-blowing fines. This is not something that goes away if you ignore it.

At Spodek Law Group, we see many clients convinced that “small informal payments” overseas are harmless. They think it’s just how business gets done in certain countries. That belief is a fast track to a federal investigation. Don’t fool yourself: if you’ve done something questionable, or if your employees have, you need to be prepared. The FCPA is broad, and the government does not care about your cultural explanations—only whether you broke US law.

MAJOR PENALTIES YOU COULD FACE

FCPA violations carry both criminal and civil penalties. For companies, criminal fines can reach up to $2 million per violation, or even higher if the court decides to impose a penalty based on twice the benefit you supposedly gained from the bribe. Individuals can face up to five years in prison for each violation of the anti-bribery provisions, plus fines that can hit $250,000 or more. Accounting violations can be even harsher, with potential 20-year prison sentences. Consequence: If the government believes you deliberately covered up the bribe in your records, they’ll throw the book at you.

Civil penalties can also cost millions, especially if the SEC demands you “disgorge” profits earned from these improper deals. Consequence: You may have to pay back every dollar the government claims you earned due to the bribe, plus additional fines and interest. That can demolish your finances.

REAL-LIFE EXAMPLES: BIG CASES, BIG FINES

When the DOJ or SEC announces a major FCPA enforcement action, it often makes headlines:

• Albemarle Corporation – This chemicals company paid over $100 million to settle FCPA charges. They were accused of using agents to bribe foreign officials in multiple countries.
• AAR Corp – Paid more than $55 million in a non-prosecution agreement. They allegedly bribed government-owned airlines in exchange for aircraft contracts.
• Rio Tinto – Faced SEC actions for failing to stop suspicious payments to a consultant tied to a foreign official. They ended up paying civil penalties and dealing with massive reputational harm.

These are only a few examples. And it’s not just the big companies. Smaller ones get hit too, but they might not make front-page news. If you’re indicted, you could go bankrupt trying to pay lawyers and fines—if you even avoid prison. Consequence: Your business might close for good, and you’ll be wearing a federal conviction on your record.

OUR FIRM PHILOSOPHY: NO TOLERANCE FOR EXCUSES

At Spodek Law Group, we believe that if you’re under FCPA scrutiny, you can’t afford denial or half-measures. We’re brutally honest about your situation, and we’ll call you out if you’re lying to yourself. If you want to keep your freedom and protect your company, you must treat an FCPA investigation with urgency. We care about your success—but we’ll force you to see the truth. Time is critical. The government doesn’t let up, and once they’ve built a case against you, it’s tough to reverse the momentum.

KEY ELEMENTS THE PROSECUTION MUST PROVE

To charge you under the anti-bribery sections of the FCPA, the government typically needs evidence that:

• You offered or gave (or authorized someone else to give) anything of value to a foreign official.
• Your intent was corrupt—to influence that official to gain or keep business.
• The bribe was somehow connected to interstate commerce (emails, phone calls, bank transfers, etc.). That’s almost always easy to show if any step occurred in the United States.

If they can link you to those elements, you could be indicted. Once indicted, you face the full weight of the federal government. Evidence will be thrown out if your rights were violated, but that’s not too common in FCPA probes. The DOJ usually collects documents and emails from overseas and from your own servers, so they’re often methodical about warrants and legal processes. Consequence: Don’t bank on a technicality to save you. Instead, you need a real plan.

STRATEGIES FOR DEFENDING YOU

Lack of Corrupt Intent

If you can show that the payments were legitimate business expenses—like paying for a foreign official’s travel to your US facility for a real product demonstration, or covering a modest hotel stay that’s usual for business visitors—this might be a defense under the FCPA. Consequence: If you prove there was no bribe intended, the government’s anti-bribery charge can collapse.

Compliance Program and Self-Reporting

In many FCPA cases, the best path is cooperating with the government. If your company quickly reports internal violations to the DOJ or SEC, you might get a reduced penalty, or even an agreement not to prosecute. Consequence: This can save you millions in fines and possible jail time. The government expects you to prove you have strong compliance programs that catch misconduct early. If you don’t, they see it as negligence or willful blindness—and punish you accordingly.

Challenging Government Evidence

If you have reason to believe the alleged bribes never happened, or that the money was for legitimate services performed by a foreign consultant, you can question the prosecution’s assumptions. Consequence: A well-structured cross-examination might shake the credibility of the government’s key witnesses. This strategy can work if the facts are on your side, but you need lawyers who can build a compelling narrative.

LOCAL INSIGHTS? THINK ABOUT WHERE YOU’RE BASED

If your business is located in a major city like New York or Los Angeles, you’ve probably heard about FCPA crackdowns because these areas often host large corporations with global ties. But if you’re in a smaller town, you might assume no one is watching. That’s nonsense. The DOJ uses advanced data analysis and has partnerships with foreign governments. They don’t need you to be in a specific state to file charges. Your role in an international scheme can be traced through bank transfers, phone records, and old emails. Don’t assume any place is safe from an investigation.

At Spodek Law Group, we’ve dealt with clients from all parts of the USA—some never thought they’d end up dealing with a federal investigation, until they did. We can’t let you make the same mistake. If you’re connected to anything that looks like bribery overseas, or if your internal accounting is a mess, you need to get serious right now. Time is not on your side.

BEING HARSH BUT FAIR: CALLING OUT YOUR BLIND SPOTS

Look, you might be telling yourself this could never happen to you. You might say, “I’m an honest person. I don’t bribe.” But do you know everything your employees or local partners do on your behalf? Maybe not. Maybe they’re paying bribes without your direct knowledge. Under the FCPA, you can still be held responsible if the government proves you “should have known” your representatives were up to no good. That’s the truth. So don’t hide behind ignorance or complacency. Consequence: You could land in a courtroom, facing charges, while your entire company is shaken to its core.

STEP-BY-STEP OVERVIEW

Below is a quick look at how an FCPA investigation typically unfolds:

1. Whistleblower or Trigger Event: The SEC or DOJ might get a tip from an inside employee or a competitor. Alternatively, foreign authorities might share information with US agencies.
2. Initial Inquiry: They’ll gather business records, emails, or phone logs. If they suspect strong evidence, they can open a formal investigation.
3. Investigation and Subpoenas: You could receive a subpoena compelling you to hand over documents or appear for questioning. Consequence: If you refuse, you might be charged with obstruction.
4. Charging Decision: After reviewing the evidence, the DOJ can file criminal charges; the SEC can file a civil complaint. You’ll likely see a press release that can damage your reputation instantly.
5. Plea Bargain or Trial: If the evidence is overwhelming, you might negotiate a settlement or a plea to avoid worst-case sentences. If you believe you’re innocent or the case is weak, you might fight it in court.

That’s a simplified version. In reality, it’s a stressful period, with months or years of negotiations and legal wrangling. Do not go through it alone. Consequence: A misstep can ruin your case. Even a careless email can be used against you.

SPOTLIGHT ON ACCOUNTING PROVISIONS

The FCPA isn’t just about bribery. It also has accounting provisions that require companies, especially those listed on US exchanges, to keep accurate books, records, and internal controls. If you’re using hidden accounts or fake invoices to conceal payments, you could violate these provisions, leading to separate charges and steep penalties. Consequence: That might mean additional jail time for any individuals involved, plus massive fines for the company.

We advise clients to set up robust internal controls that track every payment, and to do regular audits. These steps show the government you’re serious about preventing illegal activity. If employees override those controls to pay bribes anyway, you’ll be in a better position to argue it was a rogue action, not a company policy.

COMPARISON TABLE: BRIBERY VS. ACCOUNTING VIOLATIONS

HOW WE DEFEND YOU

We, at Spodek Law Group, will look at your situation systematically. We identify weaknesses in the prosecution’s approach, gather exonerating evidence, and challenge any inflated claims by the DOJ. If it’s best for you to self-report or cooperate for a reduced penalty, we’ll be brutally honest and tell you. If a full trial defense is the best option, we’ll prep your case meticulously. We handle white-collar investigations nationwide, so we have a deep understanding of how federal authorities operate.

A TOUGH MESSAGE

You might be thinking you can do the bare minimum. That’s just foolish. If you want to protect yourself, you need to invest time, energy, and money into building a credible defense. Half measures won’t cut it when the SEC or DOJ is kicking down your door. This is the moment to decide if you’re serious about saving your future—or if you’d rather bury your head in the sand. Consequence: If you don’t step up, you could lose your business, your money, and your freedom.

FREQUENTLY ASKED QUESTIONS (FAQs)

Q: What if the payments were “legal” in the foreign country?

A: The FCPA only accepts a local law defense if that specific payment is explicitly permitted under the foreign nation’s written regulations. It’s rare to find a law that officially allows a bribe. Consequence: If you can’t prove it was legal under local statutes, the defense fails.

Q: Is there a minimum bribe amount before I get in trouble?

A: No, the law doesn’t set a “minimum.” Even small gifts can qualify if they’re intended to secure business favors. Consequence: If the government interprets it as corrupt, you’re in hot water, no matter how little the gift cost.

Q: Could I face charges if my partner did all the bribing without telling me?

A: Possibly. If the government claims you “should have known” about the bribe, you can still be on the hook. The FCPA punishes willful blindness. Consequence: Don’t rely on ignorance. You must show you had proper controls, or else you face the same liability.

READY TO TAKE THE NEXT STEP?

We are available 24/7 to provide a risk-free consultation. If you think you’re under investigation, call us before it’s too late. Don’t rely on wishful thinking. We’ll look at your case, determine potential exposure, and craft a plan that could save your company—and your life as you know it. We tell you the truth, even if it’s ugly. Our only objective is to protect you. But remember, we can’t help you if you don’t reach out.

CONCLUSION

The Foreign Corrupt Practices Act is a serious piece of legislation. It doesn’t matter if you’re a massive publicly traded corporation, or a small firm with a few employees working overseas. If there’s any bribery or sloppy accounting, you could be facing massive fines and possible prison. That’s the stark reality. Don’t be naive or dismissive. The moment you suspect an issue, talk to an experienced federal defense law firm—like ours. Our job is to hold you accountable, force you to see your vulnerabilities, and guide you through the storm. If you’re ready, we’re here. If not, good luck dealing with the DOJ alone.

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