Appeals Court Affirms Limited Coverage of FCPA for Foreign Nationals
Foreigners without close ties to U.S. companies cannot be held in violation of the Foreign Corrupt Practices Act for acts that took place outside the U.S., the U.S. Court of Appeals for the 2nd Circuit said in an Aug. 24…
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decision. The government had alleged Lawrence Hoskins, a U.K. national and senior vice president of France-based Alstom Resources Management, was guilty of FCPA violations by way of conspiring with employees of a U.S.-based subsidiary to bribe Indonesian officials in an effort to secure a power generation contract. But conspiring with U.S. officials was not good enough, the appeals court ruled, affirming a district court decision. Unlike U.S. nationals, who are explicitly liable for the FCPA for conduct abroad, “the FCPA clearly dictates that foreign nationals may only violate the statute outside the United States if they are agents, employees, officers, directors, or shareholders of an American issuer or domestic concern,” the court said. “To hold Hoskins liable, the government must demonstrate that he falls within one of those categories or acted illegally on American soil.” The government can still pursue FCPA charges if it proves Hoskins was acting as an agent of a U.S. company, the appeals court said. Hoskins also faces money laundering charges filed in 2013 with the FCPA charges, according to a post on The FCPA Blog.