FCPA Fraud - Whistle Blowers Against Fraud | Stockbroker | Scoop.it

The opportunity to become a Whistleblower, and expose Foreign Corrupt Practices Act fraud, was created under The Dodd-Frank Wall Street Reform and Protection Act.  Enforced jointly by the Department of Justice and the Securities and Exchange Commission, the FCPA has been tremendously successful at exposing fraud.  Created in 1977, the FCPA helps to expose the bribery of foreign government officials and violations of accounting provisions.  The anti-bribery provisions of the FCPA apply to U.S. and foreign issuers, and both public and private companies.

FCPA violations have occurred across every industry imaginable, including entertainment, oil & gas, defense, pharmaceuticals, medical device, telecommunications, engineering, technology, electronics and chemicals.  Warning signs of violations of the anti-bribery and accounting provisions of the FCPA often include some combination of the following:

  • gifts, entertainment and charitable contributions lacking a clear and legal business purpose;
  • high volumes of cash transactions, payments from out of country bank accounts or payments to risky vendors; and
  • significant payments to agents and consultants with no prior relationship, oftentimes with vague references such as “government expenses”, “consulting”, “for services rendered”, or other similarly nondescript justifications.