Foreign Executives Shielded From Bribery Allegations
Defendant, a nonresident foreign national who allegedly participated in a bribery scheme, was charged with a violation of the Foreign Corrupt Practices Act (FCPA) and challenged the case on jurisdictional grounds. The Second Circuit held that a non-resident foreign national, operating entirely outside the physical territory of the United States cannot be held liable for violations of the FCPA based on theories of aiding-and-abetting or conspiracy unless he or she was directly liable under the statute as an employee, director, or agent of a US company. This severely limits the reach of the U.S. Department of Justice to bring FCPA claims against foreign nationals who steer clear of U.S. soil. However, the court revived the case against the second object of the conspiracy charging him with willfully conspiring with various co-defendants to, while in territory of United States, commit acts in furtherance of bribing foreign officials in violation of the FCPA.