Scarboro played a key role in all of the SEC’s recent major FCPA cases and acted as the commission’s liaison with the DoJ and regulators around the world. She was responsible for the SEC’s investigation of Siemens, which led to an $800 million settlement with the regulators, the largest settlement to date under the 34-year-old federal statute.
But Scarboro’s departure did not halt the rise in successful SEC enforcements. In July, for instance, the commission and the DoJ announced penalties against armour Holdings. Total fines were approximately $16 million ($10.3 million via a DoJ non-prosecution agreement and $5.7 million via a settled SEC civil complaint). Similarly,Diageo, the London-based maker of Johnny Walker and Smirnoff alcohol brands, agreed to pay $16 million to settle SEC charges for violating the FCPA.
So there has not been any real difference in the volume of FCPA cases and the SEC has continued to do its job. Comments from Thomas Fox (pictured left), a former general counsel and and attorney specializing in FCPA compliance solutions, confirm this. In the current year, the agency has continued its aggressive approach to FCPA cases because of new regulations, he explains. ‘The SEC entered into its first Deferred Prosecution Agreement with the Tenaris company [and] the Whistle-Blower provisions of Dodd-Frank can only help increase additional FCPA cases.’
Nevertheless, Brockmeyer will undoubtedly enhance the FCPA unit’s current efforts. She brings years of experience in the field and has supervised numerous investigations since 2002. Many experts feel she will take up where her predecessor left off, pursuing active enforcement of FCPA cases.
‘The appointment of Brockmeyer will be one more step in the SEC’s continued aggressive enforcement of FCPA cases,’ says Fox. ‘Brockmeyer’s background with the cross-border enforcement group will be a plus for the SEC to expand its cooperation with other countries’ anti-corruption enforcement agencies, such as the UK’s Serious Fraud Office.’
[Article by Aarti Maharaj, Corporate Secretary]