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Day: December 12, 2016

SEC Enforcement Director Stresses Individual Liability in FCPA Cases


The SEC’s Enforcement Director, Andrew Ceresney, recently described how the SEC has prioritized FCPA (Foreign Corrupt Practices Act) enforcement with a focus on individual liability.  Mr. Ceresney said the SEC has brought 21 FCPA cases and has taken “a lead role in fighting corruption worldwide.”  Describing some recent FCPA enforcement cases, Mr. Ceresney highlighted the Enforcement Division’s “renewed emphasis on individual liability,” which includes holding CEOs accountable for ignoring red flags.  Mr. Ceresney explained that “pursuing individual accountability is a critical part of deterrence.”

OUR TAKE: Individual liability should be a significant concern when the SEC and DoJ enforce the FCPA, which can carry criminal penalties.  Firms should ensure a monitoring system that includes adequate follow-up on potential red flags.