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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."

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Hinshaw & Culbertson LLP is a U.S. based law firm with offices nationwide and in London. The firm's national reputation spans the insurance industry, the financial services sector, and other highly regulated industries. Hinshaw also serves as counsel to the professional services sector, and provides business advisory and transactional services to clients of all sizes.