Insights & Regulatory Updates
SEC Charges BIT Mining with FCPA Violations in Connection with Bribery Scheme to Influence Members of Japanese Parliament
The Securities and Exchange Commission (SEC) has announced a significant enforcement action involving BIT Mining Ltd., formerly known as 500.com Limited, for violations of the Foreign Corrupt Practices Act (FCPA). The company has agreed to pay a $4 million civil penalty to resolve charges stemming from a bribery scheme that took place from 2017 to 2019. The scheme aimed to influence Japanese government officials, including members of Japan’s parliament, in an effort to establish an integrated resort and casino in the country.
Is the SEC Finished with NPAs and DPAs in FCPA Cases?
In 2010, the SEC introduced Deferred Prosecution Agreements (DPAs) and Non-Prosecution Agreements (NPAs) as part of a strategy to strengthen its enforcement efforts by encouraging cooperation from companies and individuals. However, since then, the SEC has rarely used these tools, employing DPAs only twice and NPAs three times, mostly in FCPA enforcement actions. The last use of either agreement was in 2016 in cases involving Nortek and Akamai Technologies. Since then, the SEC has not returned to NPAs or DPAs, raising questions about whether the agency has moved away from these agreements for resolving FCPA cases.
California Law Firm Settles False Claims Act Allegations Over Misuse of PPP Loan Funds
On August 15, 2024, a California-based law firm, along with senior managers, agreed to a settlement totaling $274,000 to resolve allegations of False Claims Act violations related to the misuse of Paycheck Protection Program (PPP) loan funds.