The United Nations and World Economic Forum calculates that the cost of corporate corruption globally is $5 trillion a year, or 5% of the world’s 2022 GDP.
Corruption can hamper economic growth by discouraging investment, increasing transaction costs, and distorting market competition. It can perpetuate poverty by diverting resources away from essential services and benefiting the wealthy and powerful. It can undermine democratic institutions and erode public trust in governments. It can hinder sustainable development by diverting resources away from essential infrastructure and social services.
The Foreign Corrupt Practices Act, or the FCPA – the government’s leading weapon in this global war on corporate crime – has far-reaching implications for companies engaged in international business. For those who violate it the consequences can be severe. And with the recent addition of the Foreign Extortion Prevention Act (FEPA), the federal government has even more to work with.
I had the pleasure of learning more about this fascinating and complex area of the law by speaking with two attorneys with Reed Smith who practice in the firm’s Global Regulatory Enforcement Group.
Mark E. Bini is a former federal and state prosecutor in New York, has led multiple multi-year cross-border investigations of corporations and individuals and has particular experience in investigations involving potential Foreign Corrupt Practices Act (FCPA) violations. As a prosecutor, he worked closely and in parallel with many domestic and foreign law enforcement agencies and regulators, including the United Kingdom’s Financial Conduct Authority and Brazil’s Ministerio Publico Federal.
Thomas H. Suddath, Jr., is a former Assistant U.S. Attorney in the Criminal Division of the U.S. Attorney’s Office in Philadelphia, has extensive experience conducting international and domestic internal investigations and frequently counsels companies on compliance and voluntary disclosure issues related to the FCPA. He has handled FCPA and other internal investigations in many countries including Russia, Poland, Turkey, Greece, Hungary, Czech Republic, Mexico and Colombia.
Thanks to Mark and Tom for sharing their insights based on decades of experience.
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This podcast is the audio companion to the Journal of Emerging Issues in Litigation. The Journal is a collaborative project between HB Litigation, a brand of Critical Legal Content (a custom legal content service for law firms and service providers) and the vLex Fastcase legal research family, which includes Full Court Press, Law Street Media, and Docket Alarm.
If you have comments, ideas, or wish to participate, please drop me a note at Editor@LitigationConferences.com.
Tom Hagy
Litigation Enthusiast and
Host of the Emerging Litigation Podcast
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