The U.S. Justice Department has indicted the Swiss bank Wegelin this week for conspiring with U.S. taxpayers to hide over USD $1.2 billion in assets from the U.S. government.  Wegelin did not have any offices in the United States, but did access the U.S. banking system through  a correspondant account with UBS.  Three bankers, Michael Berlinka, Urs Frei and Roger Keller, were named in the indictment.

Two Japanese corporations have pleaded guilty to price-fixing and bid-rigging, and have agreed to pay fines of USD $548 million, according to the U.S. Department of Justice. This was one of the largest antitrust investigations ever, in terms of scope, as the two companies had been participating in the scheme for at least a decade.  Automakers and consumers both overpaid for electronic parts as a result.  During the investigation, law enforcement agencies from the United States, Japan, and Europe all became involved.  The companies were ultimately sanctioned by the U.S.

On January 30, 2012, the media reported that on the deadline given to Swiss banks to turn over sensitive client information, Swiss banks had transmitted such information to the Swiss government, which in turn transmitted it in encrypted form to the U.S. government.  However, the Swiss government has said that it will only decode the information once the Swiss and U.S. government haver achieved a resolution.  The Swiss government wants, among other things, the U.S. government to drop investigations against the eleven Swiss banks.

Two American businessmen accused of planning to bribe the defense minister of Gabon were acquitted of criminal charges on January 30, 2012.  The two men were charged by the U.S. Department of Justice for violating the Foreign Corrupt Practices Act (FCPA), which prohibits bribing foreign officials.  The jury has acquitted two of the accused, but will continue deliberating on three remaining defendants.

The Mexican government has recently extradited four men, one to Colombia and three to the United States.  The Colombian, Jhon Jairo Marin Castaneda, had been sentenced to eleven years in prison for bringing USD $21,000 into Mexico without declaring its origin.  Upon questioning, it was determined that he was also using a fake passport.  

The March 2012 issue of the International Enforcement Law Reporter is now available.  Articles in this isssue that might be especially interesting to our readers include "IRS Reopens Offshore Voluntary Disclosure Program," on page 80, and "Mexico Extradites Man Charged With Murder of ICE Special Agent," on page 92.  If you are currently a subscriber to the IELR and wish to receieve a PDF version, please send us an email.  If you would like to subscribe to the IELR, please visit our Subscription page.

On January 23, 2012, the International Criminal Court (ICC) issued two decisions regarding the indictments brought against six Kenyan officials in response to the post-election violence that broke out following the 2007 presidential election.  In the decisions, the ICC found that it had "substantial grounds to believe" that four of the six had committed crimes against humanity and other serious offenses, and that they would be tried before the ICC at a later date.  The four are also accused of orchestrating attacks against civilian supporters of opposition political parties in Kenya in 2007 and early 2008.  All four men are prominent figures in Kenya, and three hold or have held important government positions. The ICC ruling may have long-lasting repercussions in the African nation, and will likely affect the Kenyan presidential race depending on the outcome of the appeal and trial.

Decision 1

Decision 2

In a settlement with the U.S. Department of Justice, Marubeni Corp., a Japanses trading company, will pay the U.S. government $54.6 million dollars for bribing Nigerian officials to receive natural gas contracts on Bonny Island, Nigeria.  Between 1995 and 2004, Marubeni was awarded $6 billion dollars in contracts, which it obtained through bribery.  The Justice Department recently filed a deferred-prosecution agreement charging Marubeni with violating the Foreign Corrupt Practices Act, which prohibits bribery of foreign officials.  

The Organization for Economic Cooperation and Development (OECD) has issued reports on the corruption enforcement efforts in Japan, Italy, and Switzerland.  The OECD critizied Japan for poor implementation of its anti-bribery laws, and for only prosecuting two cases since their inception.  Italy was criticized for only sanctioning 3 companies and 9 individuals, and Switzerland was rebuked for only successfully prosecuting one individual, despite the strong possibility of corruption in its financial sector. The OECD urged reforms and that the signatory countries take more action to combat corruption and bribery.

Over thirty civil society groups sent a letter to all members of the U.S. Senate and House of Representatives recently to protest any attempt to change the Foreign Corrupt Practices Act (FCPA).  FCPA is currently used to prevent U.S. individuals and companies from engaging in corruption or bribery abroad.  The civil society groups wish for the interpretation of FCPA to remain broad, while proposed amendments would limit its future impact.