Foreign Corrupt Practices Act enforcement, it’s not just about the DOJ.
Granted, as a civil enforcement agency the SEC’s sticks are less sharp than the DOJ’s, but the SEC also claims a significant piece of the FCPA enforcement pie (query whether it should – but that is a subject for another day – for instance as discussed in “The Story of the Foreign Corrupt Practices Act” the SEC wanted no part in enforcing the FCPA’s anti-bribery provisions and in recent years an SEC Commissioner stated that anti-corruption policy is not within the SEC’s area of expertise nor further to the SEC’s mission – see here).
This post goes in-depth into various facts and figures relevant to SEC FCPA enforcement in 2024.
[See here for a similar post for 2023; here for 2022; here for 2021; here for 2020; here for 2019; here for 2018; here for 2017; here for 2016; here for 2015; here for 2014; here for 2013; here for 2012; here for 2011; and here for 2010].
Settlement Amounts and Specifics
In 2024, the SEC brought 6 corporate enforcement actions and collected approximately $185.2 million in those enforcement actions (Note: this figure – as well as certain historical figures below – represent net FCPA settlement amounts after accounting for various credits or deductions in certain enforcement actions for related law enforcement actions – U.S. or non-U.S.).
By way of comparison:
- in 2023 the SEC collected approximately $268 million in 9 corporate enforcement actions;
- in 2022 the SEC collected approximately $272 million in 7 corporate enforcement actions;
- in 2021 the SEC collected approximately $171 million in 4 corporate enforcement actions;
- in 2020 the SEC collected approximately $683 million in 8 corporate enforcement actions;
- in 2019 the SEC collected approximately $1.03 billion in 13 corporate enforcement actions;
- in 2018 the SEC collected approximately $382 million in 14 corporate FCPA enforcement actions;
- in 2017 the SEC collected approximately $289 million in 7 corporate FCPA enforcement actions;
- in 2016 the SEC collected approximately $1.07 billion in 24 corporate FCPA enforcement actions;
- in 2015 the SEC collected approximately $114.8 million in 9 corporate FCPA enforcement actions;
- in 2014 the SEC collected approximately $327 million in 7 corporate FCPA enforcement actions;
- in 2013 the SEC collected approximately $300 million in 8 corporate enforcement actions;
- in 2012 the SEC collected approximately $118 million in 8 corporate FCPA enforcement actions;
- in 2011 the SEC collected approximately $148 million in 13 corporate FCPA enforcement actions;
- in 2010 the SEC collected approximately $530 million in 19 corporate FCPA enforcement actions.
The range of SEC FCPA enforcement actions in 2024 was on the high end $101.5 million (RTX) and on the low end $1.7 million (Moog).
Of the 6 corporate enforcement actions brought by the SEC in 2024, 2 (33%) were SEC only from an FCPA enforcement standpoint.
By way of comparison, of the 9 corporate actions brought by the SEC in 2023, 7 (78%) were SEC only; of the 7 corporate actions brought by the SEC in 2022, 3 (43%) were SEC only; of the 4 corporate actions brought by the SEC in 2021, 2 (50%) were SEC only; of the 8 corporate actions brought by the SEC in 2020, 4 (50%) were SEC only; of the 13 corporate actions brought by the SEC in 2019, 6 (46%) were SEC only; of the 14 corporate actions brought by the SEC in 2018, 9 (64%) were SEC only; of the 7 corporate actions brought by the SEC in 2017, 4 (58%) were SEC only and of the 24 corporate actions brought by the SEC in 2016, 14 (58%) were SEC only.
Of the 6 corporate enforcement actions brought by the SEC in 2024, 6 (100%) were administrative actions. In other words, there was no judicial scrutiny of SEC corporate FCPA enforcement actions in 2024. By way of comparison:
- 100% of SEC corporate FCPA enforcement actions in 2023 were administrative actions;
- 100% of SEC corporate FCPA enforcement actions in 2022 were administrative actions;
- 100% of SEC corporate FCPA enforcement actions in 2021 were administrative actions;
- 100% of SEC corporate FCPA enforcement actions in 2020 were administrative actions;
- 92% of SEC corporate FCPA enforcement actions in 2019 were administrative actions;
- 100% of SEC corporate FCPA enforcement actions in 2018 were administrative actions;
- 100% of SEC corporate FCPA enforcement actions in 2017 were administrative actions;
- 83% of SEC corporate FCPA enforcement actions in 2016 were administrative actions;
- 89% of SEC corporate FCPA enforcement actions in 2015 were administrative actions;
- 86% of SEC corporate FCPA enforcement actions in 2014 were administrative actions;
- 50% of SEC corporate FCPA enforcement actions in 2013 were administrative actions.
As the above charts indicates, there has been no judicial scrutiny of SEC FCPA enforcement actions since 2019 (a time period in which there has been 34 actions).
In 2024, the SEC collected approximately $11.6 million in disgorgement and prejudgment interest in enforcement actions that did not charge or find anti-bribery violations. This is noteworthy because many question, and rightfully so, whether disgorgement is an appropriate remedy in cases that do not charge FCPA anti-bribery violations. See here for a prior post on so-called “no-charged bribery disgorgement” cases.
By way of comparison:
- in 2023 the SEC collected approximately $51.7 million in disgorgement and prejudgment interest in no-charged bribery disgorgement cases;
- in 2022 the SEC collected approximately $2.8 million in disgorgement and prejudgment interest in no-charged bribery disgorgement cases;
- in 2021 the SEC collected approximately $142 million in disgorgement and prejudgment interest in no-charged bribery disgorgement cases;
- in 2020 the SEC collected approximately $256 million in disgorgement and prejudgment interest in no-charged bribery disgorgement cases;
- in 2019 the SEC collected approximately $183 million in disgorgement and prejudgment interest in no-charged bribery disgorgement cases;
- in 2018 the SEC collected approximately $171 million in disgorgement and prejudgment interest in no-charged bribery disgorgement cases;
- in 2017 the SEC collected approximately $2 million in disgorgement and prejudgment interest in no-charged bribery disgorgement cases;
- in 2016 the SEC collected approximately $73 million in disgorgement and prejudgment interest in no-charged bribery disgorgement cases;
- in 2015 the SEC collected approximately $45 million in disgorgement and prejudgment interest in no-charged bribery disgorgement cases;
- in 2014 the SEC collected approximately $104 million in disgorgement and prejudgment interest in no-charged bribery disgorgement cases;
- in 2013, the SEC collected approximately $208 million in disgorgement and prejudgment interest in no-charged bribery disgorgement cases;
- in 2012, the SEC collected approximately $57.4 million in disgorgement and prejudgment interest in no-charged bribery disgorgement cases; and
- in 2011 the SEC collected approximately $51 million in disgorgement and prejudgment interest in n0-charged bribery disgorgement cases.
The $185.2 million the SEC collected in 2024 corporate enforcement actions breaks down as follows:
- approximately $123.1 million in disgorgement and prejudgment interest; and
- approximately in $62.1 million in civil penalties
In other words, approximately 66% of SEC corporate FCPA settlement amounts in 2024 consisted of disgorgement and prejudgment interest.
By way of comparison:
- in 2023, 83% of SEC corporate FCPA settlements consisted of disgorgement and prejudgment interest;
- in 2022, 56% of SEC corporate FCPA settlements consisted of disgorgement and prejudgment interest;
- in 2021, 57% of SEC corporate FCPA settlements consisted of disgorgement and prejudgment interest;
- in 2020, 40% of SEC corporate FCPA settlements consisted of disgorgement and prejudgment interest;
- in 2019, 88% of SEC corporate FCPA settlements consisted of disgorgement and prejudgment interest;
- in 2018, 92% of SEC corporate FCPA settlements consisted of disgorgement and prejudgment interest;
- in 2017, 82% of SEC corporate FCPA settlements consisted of disgorgement and prejudgment interest;
- in 2016 96% of SEC FCPA settlements consisted of disgorgement and prejudgment interest;
- in 2015 51% of SEC FCPA settlements consisted of disgorgement and prejudgment interest;
- in 2014 99% of SEC FCPA settlement amounts in 2014 consisted of disgorgement and prejudgment interest;
- in 2013 98% of SEC FCPA settlement amounts consisted of disgorgement and prejudgment interest;
- in 2012 86% of SEC FCPA settlement amounts consisted of disgorgement and prejudgment interest;
- in 2011, 94% of SEC FCPA settlement amounts consisted of disgorgement and prejudgment interest; and
- in 2010, 96% of SEC FCPA settlement amounts consisted of disgorgement and prejudgment interest.
Corporate vs. Individual Actions
Of the 6 SEC FCPA enforcement actions in 2024, 1 (17%) has involved, at present, related SEC FCPA charges or findings against company employees.
By way of comparison:
- of the 9 corporate SEC FCPA enforcement actions from 2023, 0 (0%) involved related SEC charges or findings against company employees;
- of the 7 corporate SEC FCPA enforcement actions from 2022, 0 (0%) involved related SEC charges or findings against company employees;
- of the 4 corporate SEC FCPA enforcement actions from 2021, 0 (0%) involved related SEC charges or findings against company employees;
- of the 8 corporate SEC FCPA enforcement actions from 2020, 3 (38%) involved related SEC charges or findings against company employees;
- of the 13 corporate SEC FCPA enforcement actions from 2019, 2 (15%) involved related SEC charges or findings against company
- of the 14 corporate SEC FCPA enforcement actions from 2018, 1 (7%) involved related SEC charges or findings against company employees;
- of the 7 corporate SEC FCPA enforcement actions from 2017, 1 (14%) involved related SEC charges or findings against company employees;
- of the 24 corporate SEC FCPA enforcement actions from 2016, 7 (29%) involved related SEC charges or findings against company employees;
- in 2015 of the 9 corporate SEC FCPA enforcement actions 2 (22%) involved related SEC charges or findings against company employees;
- in 2014 of the 7 corporate SEC FCPA enforcement actions, 0 (0%) involved related SEC charges or findings against company employees;
- in 2013 of the 8 SEC corporate FCPA enforcement actions 0 (0%) involved related SEC charges or findings against company employees;
- in 2012, of the 8 SEC corporate FCPA enforcement actions 0 (0%) involved related SEC charges or findings against company employees;
- in 2011, of the 13 SEC corporate FCPA enforcement actions 2 (15%) involved related SEC charges or findings against company employees; and
- in 2010, of the 19 SEC corporate FCPA enforcement actions 3 (15%) involved related SEC charges or findings against company employees.
Voluntary Disclosures
Of the 6 SEC corporate FCPA enforcement actions from 2024, 3 (50%) were the result of voluntary disclosure.
By way of comparison:
- of the 9 corporate SEC FCPA enforcement actions from 2023, 6 (67%) were the result of voluntary disclosure;
- of the 7 corporate SEC FCPA enforcement actions from 2022, 3 (43%) were the result of voluntary disclosure;
- of the 4 corporate SEC FCPA enforcement actions from 2021, 0 (0%) were the result of voluntary disclosure;
- of the 8 corporate SEC FCPA enforcement actions from 2020, 3 (38%) were the result of voluntary disclosure;
- of the 13 corporate SEC FCPA enforcement actions from 2019, 6 (46%) were the result of voluntary disclosure;
- of the 14 corporate SEC FCPA enforcement actions from 2018, 6 (43%) were the result of voluntary disclosure;
- of the 7 corporate SEC FCPA enforcement actions from 2017, 1 (14%) was the result of voluntary disclosure;
- of the 24 corporate SEC FCPA enforcement actions from 2016, 8 (33%) were the result of voluntary disclosure;
- of the 9 corporate SEC FCPA enforcement actions from 2015, 3 (33%) were the result of voluntary disclosure;
- of the 7 corporate SEC FCPA enforcement actions from 2014, 4 (57%) were the result of voluntary disclosure;
- of the 8 corporate SEC FCPA enforcement actions in 2013, 3 (38%) were the result of voluntary disclosure;
- of the 8 corporate SEC FCPA enforcement actions in 2012 4 (50%) were the result of voluntary disclosure;
- of the 13 corporate SEC FCPA enforcement actions in 2011 11 (85%) were the result of voluntary disclosure.
This remainder of this post provides an overview of SEC FCPA enforcement in 2024.
SAP (January 10)
See here and here for prior posts.
Charges: None (administrative order findings violations of the FCPA’s anti-bribery, books and records and internal controls provisions.)
Settlement: $38.9 million (disgorgement of $25.6 million and prejudgment interest of $13.4 million).
Origin: In 2019, the company disclosed: “SAP has received communications and whistleblower information alleging conduct that may violate anti-bribery laws in South Africa, the United States (including the U.S. Foreign Corrupt Practices Act (FCPA)), and other countries. The Legal Compliance and Integrity Office of SAP is conducting investigations with the assistance of an external law firm and voluntarily advised local authorities in South Africa as well as the U.S. Securities and Exchange Commission (U.S. SEC) and the U.S. Department of Justice (U.S. DOJ).”
Individuals Charged: No
Related DOJ Enforcement Action: Yes
Deere & Co. (Sept. 10)
See here and here for prior posts.
Charges: None (administrative order finding violations of the FCPA’s books and records and internal controls provisions)
Settlement: $9.9 (disgorgement of $4.3 million, prejudgment interest of $1.1 million and a civil monetary penalty of $4.5 million)
Origin: Unclear from the administrative order
Individuals Charged: No
Related DOJ Enforcement Action: No
Moog (Oct. 11)
See here and here for prior posts.
Charges: None (administrative order finding violations of the FCPA’s books and records and internal controls provisions)
Settlement: $1.7 million (disgorgement of $504,926, prejudgment interest of $78,889, and a civil monetary penalty in the amount of $1,100,000).
Origin: Voluntary Disclosure
Individuals Charged: No
Related DOJ Enforcement Action: No
RTX (Oct. 16)
See here and here for prior posts.
Charges: None (administrative order finding violations of the FCPA’s anti-bribery, books and records and internal controls provisions)
Settlement: Net $101.5 million (disgorgement of $37,400,090, prejudgment interest of $11,786,208, and a civil monetary penalty of $75 million with an offset of $22,500,000 based on its payment to the DOJ)
Origin: SEC subpoena
Individuals Charged: No
Related DOJ Enforcement Action: Yes
BIT Mining / 500.com (Nov. 18)
See here and here for prior posts.
Charges: None (administrative order finding violations of the FCPA’s anti-bribery, books and records and internal controls provisions)
Settlement: $4 million civil penalty
Origin: Foreign law enforcement investigation
Individuals Charged: No
Related DOJ Enforcement Action: Yes
AAR (Dec. 19)
See here for a prior post.
Charges: None (administrative order finding violations of the FCPA’s anti-bribery, books and records and internal controls provisions)
Settlement: Net $29.2 million (23.4 million in disgorgement and 5.7 million in prejudgment interest)
Origin: Voluntary disclosure / foreign media reporting
Individuals Charged: Yes
Related DOJ Enforcement Action: Yes
