This week, the SEC announced the resolution of its FCPA investigation into SAP and SciClone Pharmaceuticals announced its own resolution with the SEC.
SciClone agreed to pay $12.8 million to resolve the investigation without admitting or denying wrongdoing. The DOJ declined to continue an investigation into the company as part of the resolution. Last year, SciClone reserved $2 million for penalties to resolve the investigation. According to a 2011 article about the investigation in the Wall Street Journal, a special committee of directors at SciClose determined that the company lacked sufficient controls to ensure compliance with the law with respect to its use of third-party gifts, travel and entertainment expenses and sponsorships in China.
Software manufacturer SAP has agreed to pay $3.7 million to resolve the SEC investigation into its procurement of business in Panama and deficiencies in its internal controls. According to the press release, an SEC investigation found SAP’s deficient internal controls allowed a former SAP executive to pay $145,000 to a senior government official in Panama and offer bribes to two others. The SEC found a violation of the internal control and books and records provisions of the FCPA. SAP agreed to settle without admitting or denying the findings.
Year end reviews by defense law firms called 2015 enforcement more muted and a blockbuster year for non-prosecutions and declined prosecutions. These look to be the first two fines of 2016.
If you have questions about this information or want to speak to one of our FCPA whistleblower attorneys about reporting bribery of a government official through the SEC whistleblower law, please contact us via our online contact form.