Source: https://federal-lawyer.com/criminal-law/import-export-operations/
Timestamp: 2019-04-23 10:50:48+00:00

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Companies that import and export goods to and from the United States can face internal and external risks for criminal prosecution under the Foreign Corrupt Practices Act (FCPA) and other statutes. Our federal defense lawyers are available to represent organizations, executives, and personnel facing corruption charges nationwide.
The Foreign Corrupt Practices Act (FCPA) gives federal prosecutors broad authority to target individuals and corporate organizations under a wide range of circumstances. While most litigation under the FCPA involves allegations of corrupt practices related to contracts with foreign governments and state-owned enterprises, companies can also face corruption charges related to their import and export operations. Bribes and other attempts to obtain improper influence directed toward U.S. officials can lead to criminal prosecution as well, and companies and their executives can face prosecution as a result of their relationships with foreign entities even if they do not directly engage in bribery or other corrupt practices.
In other words, any conduct involving interstate commerce (including virtually all import and export activities) which also involves a bribe or other attempt to unduly influence a foreign official has the potential to lead to a criminal inquiry under the FCPA, 15 U.S.C. §§ 78dd-1 et seq. If the inquiry leads to charges, those targeted in the government’s prosecution can face penalties including up to $5 million in fines per violation for individuals, up to $25 million in fines per violation for businesses, and up to 20 years of federal imprisonment. In FCPA cases, individuals and businesses can also face forfeitures, disgorgements, injunctions, and suspension or debarment from doing business with government entities.
The first set of risks relates to interactions between company personnel and foreign officials. With import and export operations, it is possible for various individuals to interact with foreign officials in differing capacities, and each one of these interactions presents a potential risk for a “corrupt” practice. While this includes intentionally-corrupt practices such as knowingly offering an illegal bribe, it can also include unintentional FCPA violations – particularly in cases where companies do not have comprehensive anti-corruption policies and training programs in place.
This risk is exacerbated by the fact that many foreign officials are not well paid, particularly in the context of the salaries paid to the company personnel with whom they interact. This factor may make some foreign officials particularly susceptible to influence, and may even cause them to request improper payments and other benefits which company personnel do not realize are unlawful under U.S. federal law.
In cases where a company relies on one of these third parties to interact with a foreign official on its behalf or in direct or indirect relation to import or export operations, it is possible that these third parties’ practices could trigger an investigation or even directly result in criminal charges. This applies to both domestic and foreign third parties. While companies can use contractual language to mitigate their civil liability for third-party action, these types of contractual protections will generally be insufficient to ward off government prosecution in criminal cases.
While the Foreign Corrupt Practices Act is the primary federal statute used to prosecute individuals and entities suspected of offering bribes and engaging in other corrupt practices in relation to foreign commerce, importers and exporters can face criminal prosecution under a variety of other federal statutes as well. In relation to interactions with domestic customs and border officials, two of the statutes that present the greatest risks for U.S. companies and individuals are 18 U.S.C. § 201 and 18 U.S.C. § 371.
18 U.S.C. § 201 is a criminal statute, with potential penalties including statutory fines or three times the value of the improper benefit (whichever is greater), and federal imprisonment for a term of up to 15 years.
The federal conspiracy statute, 18 U.S.C. § 371, imposes criminal penalties in circumstances where no bribe has been paid and no other form of improper influence has been asserted. It applies in situations where a “successful” corrupt act would result in prosecution under the Foreign Corrupt Practices Act or 18 U.S.C. § 201.
In many respects, 18 U.S.C. § 371 contains some of the broadest provisions of the entire federal criminal code. In order to face prosecution in relation to import or export-related operations, it is not necessary for an individual or organization to be directly involved in alleged corrupt activity, nor it is necessary for the alleged corrupt activity to actually take place. If there is evidence of an agreement (express or implied) and an “overt act” toward the commission of a corrupt practice, this alone is enough to trigger criminal enforcement proceedings. Learn more about federal conspiracy charges under 18 U.S.C. § 371.
Foreign Law Compliance – It is a defense to criminal culpability under the FCPA that a payment was lawful under the laws or regulations of the recipient official’s country of citizenship.
Learn more about the defense strategies we use to protect our clients in federal corruption cases.
Oberheiden, P.C. is a federal criminal defense law firm with a national presence and headquarters in Dallas, Texas. The firm was founded by Dr. Nick Oberheiden, a federal defense lawyer who has more than a decade of experience in private practice and who received his training and education at top institutions in the United States and abroad. The firm’s team of defense attorneys also includes several former federal prosecutors, many of whom worked for the DOJ for decades before entering private practice.
The firm provides strategic legal representation for individual and corporate clients facing federal investigations and criminal charges under the Foreign Corrupt Practices Act and other federal statutes. By taking an aggressive and proactive approach, the firm’s attorneys have been successful in resolving many clients’ cases without charges being filed or between the stages of indictment and trial. By taking a team approach, the firm offers all clients the benefit of centuries of combined legal experience, and clients have full access to their defense team 24/7 through the final resolution of their case.
To discuss your federal corruption case with a member of Oberheiden, P.C.’s federal defense team, please call 888-519-4897 or contact us online. We will schedule your initial consultation as soon as possible.

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