Billy Jacobson Comments Upon Why Companies Choose To Not Disclose FCPA Violations

The Wall Street Journal | March.06.2015

Billy Jacobson, a partner in Orrick’s white collar & corporate investigations practice and a former federal prosecutor, recently spoke with The Wall Street Journal regarding the side effects of voluntarily reporting violations of the Foreign Corrupt Practices Act (FCPA) to authorities. The article described how the board of Colombian oil services company PetroTiger Ltd. reported possible bribery by the company’s executives and was not prosecuted by the U.S. Department of Justice.  However, the negative media coverage of the incident has led to lost business and a damaged reputation for the company.

According to Mr. Jacobson, because of such potential fallout, “More and more companies are making the decision not to disclose.” Instead, he noted, “they remediate controls, get rid of culpable individuals and clean up compliance internally.”