In two recent decisions, federal judges in the Southern District of New York addressed the extent to which the Foreign Corrupt Practices Act, 15 U.S.C. §78dd-1, et seq. (FCPA), permits U.S. regulators to pursue enforcement actions against foreign executives of foreign issuers alleged to have participated in bribery of foreign government officials.
On Feb. 8, 2013, in SEC v. Straub, S.D.N.Y., Case No. 11-9645, Judge Richard J. Sullivan issued an opinion and order (Straub Order) holding that the SEC could pursue FCPA claims against three foreign executives of Magyar Telekom, Plc. (Magyar). Sullivan found that personal jurisdiction existed because Magyar’s American Depository Receipts traded on a U.S. exchange and the executives caused Magyar to file false reports with the SEC, in part by signing false management representation and subrepresentation letters that were provided to Magyar’s auditors.
