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Volume X, Number 228

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FCPA Issue Watch: Each Action a Violation?

Last week, Judge Kevin McNulty of the U.S. District Court for the District of New Jersey considered the novel question of whether any act committed during an alleged bribery scheme could form the basis of a separate violation of the Foreign Corrupt Practices Act.  The case is U.S. v. Coburn et al., No. 2:19-cr-00120 and concerns two former executives of Cognizant Technology Solutions Corp., accused of conspiracy and FCPA violations for approving a $2 million bribe to obtain a construction permit for a Cognizant facility in Chennai, India in 2014.

The prosecution charged Gordon Coburn, one of the former Cognizant executives, with three FCPA violations, with three emails from Mr. Coburn to co-conspirators forming the basis of the three charges.  Counsel for Mr. Coburn requested dismissal of two of the three charges, arguing that allowing FCPA prosecution based on any act committed in furtherance of a violation would lead to absurd results.  He imagined a scenario where prosecutors charge an individual for engaging in everyday tasks in advance of completing the bribery scheme, such as hailing a taxi or morning hygiene.  With respect to Mr. Coburn specifically, Counsel argued that the three counts “improperly charge Mr. Coburn with three violations of the FCPA’s anti-bribery provisions based on one alleged authorization of a corrupt payment,” the building permit.

The prosecution argued that the FCPA does not “require a one-to-one relationship” between an act committed in furtherance of a bribe and an actual bribe, adding that the decision to charge separate counts based on acts is cabined only by the discretion of the government.  For support, the prosecution referenced case law apparently validating the charging of separate fraud charges based on particular mailing or wire transactions.  In his briefing to the court, Counsel for Mr. Coburn argued that Congress’ intended focus for the FCPA was the prohibition of corrupt payments overseas and that there is no support for the notion that the FCPA concerned protection of the mails and wires.  In doing so, Counsel for Mr. Coburn argues that—under the FCPA—the alleged violation is the authorization of the bribe and not actions taken in furtherance of the scheme.

© Polsinelli PC, Polsinelli LLP in CaliforniaNational Law Review, Volume X, Number 48

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About this Author

Brian F. McEvoy Litigation Attorney Polsinelli Atlanta, GA
Office Managing Partner | Practice Chair

Brian McEvoy is an accomplished litigator with a well-earned reputation for working tirelessly to achieve the best outcomes for clients and for thinking creatively and strategically to resolve difficult problems with efficiency and professionalism. Brian is a former federal prosecutor with a practice focus on white collar criminal defense and a special emphasis in health care fraud matters. During his service as a federal prosecutor, he received special commendation from the Department of Health and Human Services by receiving the Inspector General's Integrity Award for...

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Melissa S. Ho Shareholder Phoenix Antitrust, Antitrust - Health Care Compliance, Fraud and Abuse, Stark, Financial and Securities Litigation, Financial Technology, Regulation Government Investigations, Health Care Litigation
Shareholder

Melissa Ho is a trial attorney with a detailed understanding of government regulations and business litigation. A former prosecutor, she is sympathetic to the disruption and chaos a government inquiry and criminal investigation can cause. 

Melissa defends individual clients against a wide variety of criminal allegations, including health care fraud, qui tam, RICO violations, bank fraud, real estate fraud, mortgage fraud, foreign corrupt practices, securities fraud, water and air quality violations, government corruption, procurement and public fraud, professional misconduct, civil and criminal forfeiture, licensing violations, parallel proceedings, and computer crimes, including juvenile delinquency matters.

On behalf of corporate entities, Melissa has conducted numerous internal investigations for clients, both self-initiated and in response to government inquiry. She represents individuals and businesses in investigations by all types of government entities, including the Federal Bureau of Investigation, Office of Inspector Generals (state and federal), Securities and Exchange Commission, Environmental Protection Agency, Internal Revenue Service, Centers for Medicare and Medicaid Services (CMS), Department of Veterans Affairs and local police. She also assists clients in performing their own internal investigations and in developing compliance programs to prevent wrongdoing by employees.

Melissa has experience handling complex civil litigation matters, including the defense of civil RICO, 42 U.S.C. 1983 claims, election law, public official liability, consumer fraud, and general tort liability.

Melissa works as a liaison between the business and litigation professionals both in the United States and in Asia to formulate comprehensive plans in response to contract disputes and government inquiries. Combining her government regulatory knowledge, litigation skills, and knowledge of Asian cultural practices, Melissa provides sound business advice for clients with interests both nationally and internationally.

Melissa’s representative experience includes:

  • Defense of government inquiries (civil and criminal) 

  • Advising companies (both privately held and publicly traded) on litigation matters

  • Preparation of witnesses for depositions, arbitrations, and testimonials under oath

  • Coordination of rapid response and crisis communications for high profile clients 

  • False Claims Act representation, compliance and training

  • Advising clients with matters before the U.S. Department of Treasury Office of Foreign Assets Control

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Brandon C. Mumby Associate Seattle Labor and Employment Government Investigations
Associate

As a member of Polsinelli’s Government Investigations practice, Brandon Mumby primarily focuses on conducting government-facing and internal corporate investigations. Experienced in all facets of the investigative process, Brandon assists clients in responding to and navigating government inquiries based on alleged violations of various civil, criminal, and administrative laws.

Prior to joining Polsinelli, Brandon practiced as an attorney in the Washington, D.C. office of an international law firm.

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