What's The Foreign Corrupt Practices Act (And Why Should Rupert Murdoch Care)?

Foreign Corrupt Practices ActThe 1977 law makes it a crime for U.S. companies to profit from bribes to foreign officials. And there’s growing curiosity about the Foreign Corrupt Practices Act (FCPA) in media circles as recent revelations involving News Corp suggest that prosecutors could make a strong case against the company. The Justice Department’s investigation goes back at least to July, when Attorney General Eric Holder confirmed his agency’s involvement. The Wall Street Journal reported this week that the FBI is exploring whether a former News Corp subsidiary, News Outdoor Russia, engaged in bribery. But the general feeling is that prosecutors would find it much easier to piggyback on the work of UK’s Scotland Yard, which recently arrested several journalists at Rupert Murdoch‘s The Sun alleging that they paid police and other officials for news tips. Last month Sue Akers, the deputy commissioner overseeing investigations into alleged illegal practices by journalists, told a UK government inquiry into media ethics that there “appears to have been a culture at The Sun of illegal payments” to police, as well as members of the military, the government and other public organizations. Even though that wasn’t the kind of crime the Foreign Corrupt Practices Act (FCPA) was designed to attack, “the language of the Act clearly covers this,” says Solomon Wisenberg,  who co-chairs the white collar crime group at Barnes & Thornburg. (more…)

This article was printed from https://deadline.com/2012/03/foreign-corrupt-practices-act-rupert-murdoch-the-sun-239639/