Long-Predicted FCPA Sweep May Be Imminent

A recent case brought by the SEC and prosecutors in the Southern District of New York could be a wake-up call for Wall Street, specifically for U.S. broker-dealers with international business. Some glaring red flags included rapid “round-trip trades” that left two portfolios unchanged while netting the broker more than $10 million in mark-ups. This case could presage a government FCPA sweep of Wall Street that has been predicted since 2011, says this client alert. It suggests what companies should be doing to avoid, at minimum, a failure-to-supervise charge.