Recent FCPA Settlements Prohibit Executives from Serving as Officers or Directors of Public Companies

May 16, 2017

Three former executives of a Hungarian telecommunications company recently settled Federal Corrupt Practices Act (FCPA) charges filed by the U.S. Securities & Exchange Commission (SEC). In addition to financial penalties, under the settlements two of the three executives are barred from acting as an officer or director of a public company for a period of five years.

Hinshaw's Ken Yeadon – a former Assistant U.S. Attorney and SEC enforcement attorney – was quoted in a story by Nicole Di Schino of The FCPA Report reporting on the settlements. Yeadon explained that officer and director bars are a "very significant" punishment, adding that even if the defendants "don’t intend to take a C-Suite position with an SEC-reporting company in the future, it could have negative collateral effects on their ability to raise capital or get loans."

Read the full article

Hinshaw & Culbertson LLP is a U.S. law firm with 450 attorneys located in 11 states and London. Founded in 1934, the firm has a national reputation for its insurance industry work, its representation of professionals and law firms, and its closely coordinated business advisory, transactional and litigation services. We serve clients ranging from emerging and middle-market businesses to Fortune 500 companies, as well as governmental and public sector clients.