ComEd Case Shows Wide Reach of FCPA Accounting Clauses

James Koukios and Nathan Lowry authored an article for Law360 discussing the recent Commonwealth Edison Co. prosecution, which illustrated the Department of Justice’s (DOJ) willingness to enforce the books-and-records portion of the Foreign Corrupt Practices Act’s (FCPA) accounting provisions.

“ComEd was just the most recent example of federal prosecutors using the FCPA’s books-and-records provision in cases outside the foreign bribery context,” the authors wrote. “The provision has also been used to prosecute defendants for creating false documents in furtherance of other crimes, including Federal Election Campaign Act violations, Anti-Kickback Statute violations, stock-option backdating schemes, insider trading, revenue recognition schemes, and manipulating financial statements.”

They added: “Although criminal prosecution for an FCPA books-and-records violation outside the foreign bribery context is relatively rare, the criminal cases above, as well as the SEC’s [Securities and Exchange Commission] more prevalent use of the books-and-records provision in civil cases, can serve as useful lessons for public companies and their counsel.”

Read the full article.