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Article: Caveat Obsido: New Red Flag For Investors In Foreign Businesses.(Department of Justice. Fraud Section)
- Article from:
- Mondaq Business Briefing
- Article date:
- September 2, 2009
- Author:
CopyrightCOPYRIGHT 2009 Mondaq Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Introduction
The recent conviction of wealthy investor Frederic Bourke by a federal jury in New York reaffirms that the U.S. government's anti-corruption enforcement program, led by the Fraud Section of the Department of Justice, continues to push to the brink the limits of an already sweeping statute. The government argued that, although Bourke did not pay or direct the bribes, he was nonetheless guilty because he knew or should have known that bribes were being paid by others involved in the investment deal. The jury unanimously agreed.1
The Bourke case serves as both a reminder to investors in international deals (both individuals and businesses) that ...