AN ANALYSIS OF ENFORCEMENT ACTIONS SETTLED BY THE U.S. SECURITIES AND EXCHANGE COMMISSION AND THE U.S. DEPARTMENT OF JUSTICE FOR VIOLATIONS OF THE FOREIGN CORRUPT PRACTICES ACT: 2006‒2013

Abstract

Efficient capital markets and public confidence require honest actors. This is even more important in today's global marketplace. Unfair business practices such as bribery of foreign officials and maintaining and reporting of inaccurate books and records create an unlevel playing field for honest businesses, reduce market efficiency, undermine public confidence, and leads to increased regulation. Congress enacted the Foreign Corrupt Practices Act (FCPA) in 1977 in response to such unfair practices. The purpose of this study adds to the literature on unfair business practices by analyzing 98 FCPA enforcement actions settled by the U.S. Securities and Exchange Commission (SEC) and parallel enforcement actions settled by the U.S. Department of Justice (DOJ) during 2006‒2013. Total judgments settled by the SEC and the DOJ during 2006‒2013 were $1.882 billion and $2.475 billion, respectively.