With today's increasingly aggressive enforcement culture and fine's increasing accordingly; we have commented on the key considerations when presenting underlying potentially 'tainted' profits to authorities which typically underpin financial penalties. We have been fortunate enough to have worked on 3 of the 10 largest FCPA cases to date.
On average, settlement quantum for US driven FCPA (civil and criminal) settlements has surged from around US$7 million in 2005, to over US$150 million in 2014. Recent evidence of increased fines can be found in the headlines: e.g. VimpelCom, BP, HSBC and most recently the EU fining Apple EUR€13 billion for anti-trust tax-related violations. All this means is that the benchmarks are rising and so will future fines.
For the most part these fines typically are based on the profit or "gain "realized by the perpetrator, or the losses suffered by the victims - which may or may not be synonymous.
A guide to calculating gain, profit and disgorgement
In this context, we would like to share our article from the Global Investigations Review (GIR) outlining the best guide to calculating gain, profit and disgorgement.
Authors: Toby Duthie, FRA founding partner & Derek Patterson, FRA principal
