Appointment of Joint U.S.-U.K. Corporate Monitor Signals New Era in Bribery Enforcement

Nate Raymond All Articles

The American Lawyer

May 23, 2011

For companies looking to get out of the crosshairs of Department of Justice by agreeing to a deferred prosecution agreement, the appointment of a corporate monitor has become a familiar condition, particularly in Foreign Corrupt Practices Act cases.

Now, in a sign of its own growing anti-corruption efforts, the United Kingdom has been getting into the monitor game. Hughes Hubbard & Reed announced May 12 that partner Kevin Abikoff has been hired by Innospec Inc. to act as compliance monitor as part of a $40.2 million bribery settlement it reached in March 2010 with the U.S. Department of Justice, Securities and Exchange Commission, and the U.K. Serious Fraud Office. Innospec pleaded guilty to federal charges related to alleged kickbacks to the Iraqi government in the U.N. oil-for-food program and for violating the U.S. embargo with Cuba.

The position is the first-ever joint U.S.-U.K monitorship. Abikoff told us he is only the second monitor appointed by the Serious Fraud Office. Mabey & Johnson, which pleaded guilty in July 2009 in the first successful U.K. prosecution of foreign bribery, was similarly required to hire a monitor.

" It's absolutely part and parcel and consistent with the U.K.'s ramped up anti-corruption efforts, " Abikoff said.

Companies have been fretting over compliance requirements in anticipation of enforcement of the U.K. Bribery Act, which, after much delay, is set to go into effect July 1. After companies voiced concern over how the law, often called the " FCPA on steroids, " would be enforced, the government signaled in March it would take a softer line than initially feared.

Regardless, questions linger about the compliance efforts companies will need to take. With Innospec under monitorship, Abikoff said he expects the Serious Fraud Office will use his position and reports to view " at least one company's compliance with those efforts."

Innospec disclosed May 11 in its quarterly report that it expected to take a $3.9 million charge for the expected cost of the compliance monitor. Aware of past criticism of the costs of monitors, Abikoff said Hughes Hubbard is " approaching this one with full integrity but efficiency." (Abikoff said he was engaged in January but the firm waited to disclose its involvement until after the quarterly report.)

Kirkland & Ellis represented Innospec in the March 2010 settlement.

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International Criminal Court Seeks Gadhafi's Arrest for Crimes Against Humanity

Mike Corder All Articles

The Associated Press

May 17, 2011

The International Criminal Court prosecutor asked judges Monday to issue arrest warrants for Libyan leader Moammar Gadhafi and two other senior members of his regime, accusing them of committing crimes against humanity by targeting civilians in a crackdown against rebels.

Luis Moreno-Ocampo says Gadhafi, his son Seif al-Islam Gadhafi and intelligence chief Abdullah al-Sanoussi ordered, planned and participated in illegal attacks.

He said Gadhafi's forces attacked civilians in their homes, shot at demonstrators with live ammunition, shelled funeral processions and deployed snipers to kill people leaving mosques.

Judges must now evaluate the evidence before deciding whether to confirm the charges and issue international arrest warrants.

" The case is now in their hands, " Moreno-Ocampo told reporters at a press conference.

The warrants are not expected to have any immediate impact on the war in Libya, but they could make it harder for their targets to end the conflict by going into exile. Because the Security Council ordered the ICC investigation, all U.N. member states would be obliged to arrest him if he ventures into their territory.

Moreno-Ocampo said he had evidence of Gadhafi issuing orders, his son organizing the recruitment of mercenaries and of Al-Sanoussi's direct involvement in attacks on demonstrators.

Moreno-Ocampo said that the persecution is continuing in areas under Gadhafi's control.

" Gadhafi's forces prepare lists with names of alleged dissidents. They are being arrested, put into prisons in Tripoli, tortured and made to disappear, " he said.

" These are not just crimes against Libyans, they are crimes against humanity as a whole, " he added.

Moreno-Ocampo said he was continuing investigations into allegations of mass rapes and war crimes " committed by different parties during the armed conflict" and attacks on sub-Saharan Africans wrongly perceived to be mercenaries.

" There will be no impunity for such crimes in Libya, " said the prosecutor.

Moreno-Ocampo says his team has gathered so much evidence that he is almost ready to go to trial.

Even if Gadhafi flees Libya, some nations have refused to act on arrest warrants. Three countries have let Sudanese President Omar al-Bashir visit without arresting him. Al-Bashir has been indicted for crimes including genocide in Darfur in the only other International Criminal Court case ordered by the Security Council.

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International Court's Prosecutor Moving Ahead With Probe of Libyan 'Crimes Against Humanity'

Edith M. Lederer All Articles

The Associated Press

May 04, 2011

The International Criminal Court prosecutor said Monday he has " strong evidence" of crimes against humanity in Libya committed by Moammar Gadhafi's regime which he will present to a judge in a few weeks.

Luis Moreno-Ocampo said in an interview with The Associated Press he has documented the shooting of civilians in demonstrations, a systematic campaign to illegally arrest and torture civilians connected with protests, and a pattern of forced disappearances.

The U.N. Security Council voted unanimously on Feb. 26 to refer the Libyan crisis to the International Criminal Court, the world's permanent war crimes tribunal, and asked the prosecutor to report in two months.

Moreno-Ocampo said he plans to tell the council on Wednesday that " in a few weeks, we'll present our first case and we will have strong evidence of the crimes committed."

" We are going to present the case of crimes against humanity -- for those crimes committed against demonstrators and those crimes (which) are today committed in different cities of Libya, illegal arrest, torture, forced disappearances. We have evidence of that, " he said.

Gadhafi, who has been in power for more than four decades, has fought fiercely to put down an uprising against his regime that began with protests inspired by a wave of Mideast unrest and escalated into an armed rebellion.

Moreno-Ocampo said other crimes were also committed in Libya since the uprising began in February " including war crimes."

The prosecutor said his office is continuing investigations on the use of cluster bombs, the targeting of civilian areas, serious allegations of rape, and " allegations that the rebel groups killed black people, considering them mercenaries."

When he goes to the judges in the next few weeks to present his evidence, Moreno-Ocampo said he will identify the senior Libyan or Libyans his office alleges committed crimes against humanity.

" The judges can decide to accept my request and issue an arrest warrant, to refuse, or to request more evidence, " he said.

Moreno-Ocampo said he believes strongly that issuing arrest warrants offers " an opportunity to stop the crimes and protect civilians" if the alleged perpetrators can be quickly arrested.

He said he plans to discuss with the Security Council how to carry out an arrest, if authorized by the court.

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