Company self-reports antitrust and FCPA violations; DOJ and SEC decline enforcement

e The company discovered that its employees had received competitor bid information from a third party with connections to the foreign government. e The company began an internal investigation, withdrew its contract bid, terminated the employees involved, severed ties to the third-party agent, and voluntarily disclosed the conduct to DOJ’s Antitrust Division, which also declined prosecution. e During the internal investigation, the company uncovered various FCPA red flags, including prior concerns about the third-party agent, all of which the company voluntarily disclosed to DOJ and SEC. e Thecompany immediately took substantial steps to improve its compliance program. Example 2: Public Company Declination DOJ and SEC declined to take enforcement action against a public U.S. company. Factors taken into consider- ation included: e With knowledge of employees of the company’s subsidiary, a retained construction company paid relatively small bribes, which were wrongly approved by the company’s local law firm, to for- eign building code inspectors. e When the company’s compliance department learned of the bribes, it immediately ended the conduct, terminated its relationship with the con- struction company and law firm, and terminated or disciplined the employees involved. e The company completed a thorough internal inves- tigation and voluntarily disclosed to DOJ and SEC. e The company reorganized its compliance depart- ment, appointed a new compliance officer dedi- cated to anti-corruption, improved the training and compliance program, and undertook a review of all of the company’s international third- party relationships. Example 3: Public Company Declination DOJ and SEC declined to take enforcement action against a USS. publicly held industrial services company for Resolutions bribes paid by a small foreign subsidiary. Factors taken into consideration included: e The company self-reported the conduct to DOJ and SEC. e The total amount of the improper payments was relatively small, and the activity appeared to be an isolated incident by a single employee at the subsidiary. e The profits potentially obtained from the improper payments were very small. e The payments were detected by the company’s existing internal controls. The company’s audit committee conducted a thorough independent internal investigation. The results of the investiga- tion were provided to the government. e The company cooperated fully with investigations by DOJ and SEC. e The company implemented significant remedial actions and enhanced its internal control structure. Example 4: Public Company Declination DOJ and SEC declined to take enforcement action against a U.S. publicly held oil-and-gas services company for small bribes paid by a foreign subsidiary’s customs agent. Factors taken into consideration included: e The company’s internal controls timely detected a potential bribe before a payment was made. e When company management learned of the potential bribe, management immediately reported the issue to the company’s General Counsel and Audit Committee and prevented the payment from occurring. e Within weeks of learning of the attempted bribe, the company provided in-person FCPA training to employees of the subsidiary and undertook HOUSE_OVERSIGHT_022580