Fighting International Fraud with the FCPA

• In Event: Money Laundering, FCPA and Fraud Surveys

Abstract

This case introduces students to the fraudulent acts committed by international companies that fall under the Securities and Exchange Committee’s (SEC) Foreign Corrupt Practices Act (FCPA) of 1976. All but ignored from the 70’s to the 90’s, the FCPA has been enforced against many companies since the year 2000. This case: has students study the FCPA,; requires students to research a recent FCPA case; asks students questions about the companies’ codes of ethics; and requires student to make a presentation about a company that was pursued under the FCPC by the SEC that was resolved in 2010 or later. The four case objectives are to: perform research on the FCPA; examine reasons codes ethics are hard to enforce internationally; develop critical thing skills to determine how the frauds were committed; and develop business writing and speaking skills by communicating answers to questions in report form and by presenting their findings to the class. This case can be used in a fraud, forensic, an auditing or international accounting class to introduce the students to the FCPA and a study of how companies committed fraud in violation of the law. It can also be used to cover ethics, governance and accountability.

Authors

• Priscilla A Burnaby, Bentley University

• Susan Hass, Simmons College

• Brigitte Wudernitz Muehlmann, Suffolk University