SlideShare a Scribd company logo
1 of 29
J.P. Morgan and the Princelings of China
“Sons and Daughters” Program
“Sons and Daughters” Program
“You know I have always been a big believer in
the Sons and Daughters program – it almost
has a linear relationship” with winning
assignments to advise Chinese companies.
Fang Fang, Former JP Morgan CEO, China
Investment Banking
Does this break the law?
What are the elements of the FCPA?
“giving or offering to give”
“anything of value”
“to a foreign government official”
“to obtain or retain a business advantage”
“with corrupt intent”
Again: does this break the law???
D.O.J. Opinion Releases
1982: OK to hire a brother as long as no value
passes to the official;
1984: OK to hire a close relative as long as no
value passes to the official;
1995: OK to form joint venture with close
relative as long as official duties not related to
JV
DOJ Opinion Release 82-04
DOJ Opinion Release 84-01
DOJ Opinion Release 95-03
Summary: A job given to a relative is not a
“thing of value” to the government official
Compare donations to charity (Schering-
Plough Case)
In the Matter of Schering-Plough Corporation
Joint DOJ & SEC guidance - gifts can be indirect
influence
Is a job to a relative an indirect influence?
2012: joint DOJ & SEC guidance to FCPA says
“yes”
Always? Sometimes? Never?
Factual question - “it depends...”
J.P. Morgan and the Princelings of China
Source Acknowledgements:
This presentation was strongly inspired by the debate between Professors Matthew Stephenson and Andy
Spalding chronicled on their blogs at:
• The Global Anticorruption Blog
http://globalanticorruptionblog.com/?s=princeling&submit=Search
• The FCPA Blog
http://www.fcpablog.com/blog/tag/princelings
Other Source Acknowledgements:
• Slide 3 & 4 - New York Times Dealbook
http://dealbook.nytimes.com/2014/05/21/former-top-china-jpmorgan-banker-said-to-be-arrested-in-hong-kong/?_r=0
• Slide 15 - DOJ Opinion Release 82-04
http://www.justice.gov/criminal/fraud/fcpa/review/
• Slide 16 - DOJ Opinion Release 84-01
http://www.justice.gov/criminal/fraud/fcpa/review/
• Slide 17 - DOJ Opinion Release 95-03
http://www.justice.gov/criminal/fraud/fcpa/opinion/
• Slide 20 – In the Matter of Schering-Plough Corporation
https://www.sec.gov/litigation/admin/34-49838.htm
• Slide 22 – DOJ Guidance
http://www.justice.gov/criminal/fraud/fcpa/guidance/
Image Acknowledgements:
The images and fan art used in this presentation are based on Harry Potter created by J.K. Rowling and
owned by Rowling, her publishers, and Time Warner, the owner of the rights to the Harry Potter films.
American copyright law allows for the production, display, and distribution of derivative works if they fall under
a fair use exemption, 17 U.S.C. § 107.
• Slide 1 - Eat Slugs by Ninidu
http://ninidu.deviantart.com/art/Eat-Slugs-175365149
• Slide 2 - Sepia_harusame, Harry Potter, Fred Weasley, Angelina Johnson, George Weasley, Lee Jordan by Overdoor
http://www.zerochan.net/991755#full
• Slide 5 - Voldemort Remake by Brosa
http://brosa.deviantart.com/art/Voldemort-Remake-306475153
• Slide 6 - Voldemort by Brosa
http://brosa.deviantart.com/art/Voldemort-200780027
• Slide 7 - Uncredited Harry Potter Fan Art
http://potterart.tumblr.com/
• Slide 8 - Golden Snitch in Harry Potter's hand, Screenshot of film
http://harrypotter.wikia.com/wiki/File:Snitch_2.png
• Slide 9 -Albus Dumbledore by smthcrim89
http://smthcrim89.deviantart.com/art/Albus-Dumbledore-191047591
• Slide 10 - Ginny Weasley Harry Potter Hogwarts Quidditch Fan,
http://wall4all.me/wallpaper/1151459-Ginny-Weasley-Harry-Potter-Hogwarts-Quidditch-fan-art
• Slide 11 - Voldemort by Nicolasammarco
http://brosa.deviantart.com/art/Voldemort-274703732
• Slide 12 - Voldemort by Brosa
http://brosa.deviantart.com/art/Voldemort-200780027
Image Acknowledgements (continued):
The images and fan art used in this presentation are based on Harry Potter created by J.K. Rowling and
owned by Rowling, her publishers, and Time Warner, the owner of the rights to the Harry Potter films.
American copyright law allows for the production, display, and distribution of derivative works if they fall under
a fair use exemption, 17 U.S.C. § 107.
• Slide 13 - Hogwarts Castle by Seguraofhogwars2013
http://harrypotter.wikia.com/wiki/File:Hogwarts-castle-harry-potter-166431.jpg
• Slide 14 –- Harry Potter Anime by Kaileyrox,
http://kaileyrox.deviantart.com/art/Harry-Potter-Anime-254647509
• Slide 18 - Harry Potter Anime by Kaileyrox
http://kaileyrox.deviantart.com/art/Harry-Potter-Anime-254647509
• Slide 19 - Gift wrapping by Lexic Alley
https://www.etsy.com/listing/74624772/gift-wrapping
• Slide 21 - Harry Potter Acceptance Letter
https://www.etsy.com/sg-en/listing/234706310/classic-harry-potter-acceptance-letter
• Professor Severus Snape by LeksaArt
http://brosa.deviantart.com/art/Professor-Severus-Snape-281983243
• Slide 23- Minerva McGonagall, Screenshot of film
http://www.jaepix.de/fandom/hp/McG/McGonagall.html
• Slide 24 - First Year Hermione by KR0NPR1NZ
http://kr0npr1nz.deviantart.com/art/First-Year-Hermione-506319432
• Slide 25 - Harry Potter Mischief by Kanae
http://kanae.deviantart.com/art/Harry-Potter-Mischief-251770829
• Slide 26 - Eat Slugs by Ninidu
http://ninidu.deviantart.com/art/Eat-Slugs-175365149

More Related Content

More from Eric Pesik

Reviewing Contract Key Terms and Conditions
Reviewing Contract Key Terms and ConditionsReviewing Contract Key Terms and Conditions
Reviewing Contract Key Terms and ConditionsEric Pesik
 
Why fonts matter in 2 slides by @EricPesik
Why fonts matter in 2 slides by @EricPesikWhy fonts matter in 2 slides by @EricPesik
Why fonts matter in 2 slides by @EricPesikEric Pesik
 
The Truth about Tone from the Top by @EricPesik
The Truth about Tone from the Top by @EricPesikThe Truth about Tone from the Top by @EricPesik
The Truth about Tone from the Top by @EricPesikEric Pesik
 
Zombie PowerPoint by @ericpesik
Zombie PowerPoint by @ericpesikZombie PowerPoint by @ericpesik
Zombie PowerPoint by @ericpesikEric Pesik
 
Managing risk from top to bottom by @ericpesik
Managing risk from top to bottom by @ericpesikManaging risk from top to bottom by @ericpesik
Managing risk from top to bottom by @ericpesikEric Pesik
 
US Foreign Corrupt Practices Act and the Economics of Bribery by @EricPesik
US Foreign Corrupt Practices Act and the Economics of Bribery by @EricPesikUS Foreign Corrupt Practices Act and the Economics of Bribery by @EricPesik
US Foreign Corrupt Practices Act and the Economics of Bribery by @EricPesikEric Pesik
 
Do you want to be a billionaire by @EricPesik
Do you want to be a billionaire by @EricPesikDo you want to be a billionaire by @EricPesik
Do you want to be a billionaire by @EricPesikEric Pesik
 
Top 10 Things People Admit Doing on Conference Calls by @EricPesik
Top 10 Things People Admit Doing on Conference Calls by @EricPesikTop 10 Things People Admit Doing on Conference Calls by @EricPesik
Top 10 Things People Admit Doing on Conference Calls by @EricPesikEric Pesik
 
25 things NOT to do during Hungry Ghost Festival by @EricPesik
25 things NOT to do during Hungry Ghost Festival by @EricPesik25 things NOT to do during Hungry Ghost Festival by @EricPesik
25 things NOT to do during Hungry Ghost Festival by @EricPesikEric Pesik
 
Asia’s Increased Competitive Landscape - HR Implications on Talent Attraction...
Asia’s Increased Competitive Landscape - HR Implications on Talent Attraction...Asia’s Increased Competitive Landscape - HR Implications on Talent Attraction...
Asia’s Increased Competitive Landscape - HR Implications on Talent Attraction...Eric Pesik
 
Economics of Bribery by @EricPesik
Economics of Bribery by @EricPesikEconomics of Bribery by @EricPesik
Economics of Bribery by @EricPesikEric Pesik
 
Economics of Bribery
Economics of BriberyEconomics of Bribery
Economics of BriberyEric Pesik
 
Economics of Corruption
Economics of CorruptionEconomics of Corruption
Economics of CorruptionEric Pesik
 
Globalization of Ethics and Compliance by @EricPesik
Globalization of Ethics and Compliance by @EricPesikGlobalization of Ethics and Compliance by @EricPesik
Globalization of Ethics and Compliance by @EricPesikEric Pesik
 
Drafting Game Rules to Minimize Litigation
Drafting Game Rules to Minimize LitigationDrafting Game Rules to Minimize Litigation
Drafting Game Rules to Minimize LitigationEric Pesik
 
Effective Internal Controls by @EricPesik
Effective Internal Controls by @EricPesikEffective Internal Controls by @EricPesik
Effective Internal Controls by @EricPesikEric Pesik
 
Effective Internal Controls (Annotated) by @EricPesik
Effective Internal Controls (Annotated) by @EricPesikEffective Internal Controls (Annotated) by @EricPesik
Effective Internal Controls (Annotated) by @EricPesikEric Pesik
 
Fighting Global Corruption by @EricPesik
Fighting Global Corruption by @EricPesikFighting Global Corruption by @EricPesik
Fighting Global Corruption by @EricPesikEric Pesik
 
Meeting in the Middle: Embracing Negotiation to Protect Business Interests an...
Meeting in the Middle: Embracing Negotiation to Protect Business Interests an...Meeting in the Middle: Embracing Negotiation to Protect Business Interests an...
Meeting in the Middle: Embracing Negotiation to Protect Business Interests an...Eric Pesik
 

More from Eric Pesik (19)

Reviewing Contract Key Terms and Conditions
Reviewing Contract Key Terms and ConditionsReviewing Contract Key Terms and Conditions
Reviewing Contract Key Terms and Conditions
 
Why fonts matter in 2 slides by @EricPesik
Why fonts matter in 2 slides by @EricPesikWhy fonts matter in 2 slides by @EricPesik
Why fonts matter in 2 slides by @EricPesik
 
The Truth about Tone from the Top by @EricPesik
The Truth about Tone from the Top by @EricPesikThe Truth about Tone from the Top by @EricPesik
The Truth about Tone from the Top by @EricPesik
 
Zombie PowerPoint by @ericpesik
Zombie PowerPoint by @ericpesikZombie PowerPoint by @ericpesik
Zombie PowerPoint by @ericpesik
 
Managing risk from top to bottom by @ericpesik
Managing risk from top to bottom by @ericpesikManaging risk from top to bottom by @ericpesik
Managing risk from top to bottom by @ericpesik
 
US Foreign Corrupt Practices Act and the Economics of Bribery by @EricPesik
US Foreign Corrupt Practices Act and the Economics of Bribery by @EricPesikUS Foreign Corrupt Practices Act and the Economics of Bribery by @EricPesik
US Foreign Corrupt Practices Act and the Economics of Bribery by @EricPesik
 
Do you want to be a billionaire by @EricPesik
Do you want to be a billionaire by @EricPesikDo you want to be a billionaire by @EricPesik
Do you want to be a billionaire by @EricPesik
 
Top 10 Things People Admit Doing on Conference Calls by @EricPesik
Top 10 Things People Admit Doing on Conference Calls by @EricPesikTop 10 Things People Admit Doing on Conference Calls by @EricPesik
Top 10 Things People Admit Doing on Conference Calls by @EricPesik
 
25 things NOT to do during Hungry Ghost Festival by @EricPesik
25 things NOT to do during Hungry Ghost Festival by @EricPesik25 things NOT to do during Hungry Ghost Festival by @EricPesik
25 things NOT to do during Hungry Ghost Festival by @EricPesik
 
Asia’s Increased Competitive Landscape - HR Implications on Talent Attraction...
Asia’s Increased Competitive Landscape - HR Implications on Talent Attraction...Asia’s Increased Competitive Landscape - HR Implications on Talent Attraction...
Asia’s Increased Competitive Landscape - HR Implications on Talent Attraction...
 
Economics of Bribery by @EricPesik
Economics of Bribery by @EricPesikEconomics of Bribery by @EricPesik
Economics of Bribery by @EricPesik
 
Economics of Bribery
Economics of BriberyEconomics of Bribery
Economics of Bribery
 
Economics of Corruption
Economics of CorruptionEconomics of Corruption
Economics of Corruption
 
Globalization of Ethics and Compliance by @EricPesik
Globalization of Ethics and Compliance by @EricPesikGlobalization of Ethics and Compliance by @EricPesik
Globalization of Ethics and Compliance by @EricPesik
 
Drafting Game Rules to Minimize Litigation
Drafting Game Rules to Minimize LitigationDrafting Game Rules to Minimize Litigation
Drafting Game Rules to Minimize Litigation
 
Effective Internal Controls by @EricPesik
Effective Internal Controls by @EricPesikEffective Internal Controls by @EricPesik
Effective Internal Controls by @EricPesik
 
Effective Internal Controls (Annotated) by @EricPesik
Effective Internal Controls (Annotated) by @EricPesikEffective Internal Controls (Annotated) by @EricPesik
Effective Internal Controls (Annotated) by @EricPesik
 
Fighting Global Corruption by @EricPesik
Fighting Global Corruption by @EricPesikFighting Global Corruption by @EricPesik
Fighting Global Corruption by @EricPesik
 
Meeting in the Middle: Embracing Negotiation to Protect Business Interests an...
Meeting in the Middle: Embracing Negotiation to Protect Business Interests an...Meeting in the Middle: Embracing Negotiation to Protect Business Interests an...
Meeting in the Middle: Embracing Negotiation to Protect Business Interests an...
 

Recently uploaded

Guide to Networking Essentials 8th Edition by Greg Tomsho solution manual.doc
Guide to Networking Essentials 8th Edition by Greg Tomsho solution manual.docGuide to Networking Essentials 8th Edition by Greg Tomsho solution manual.doc
Guide to Networking Essentials 8th Edition by Greg Tomsho solution manual.docssuserf63bd7
 
RATINGS OF EACH VIDEO FOR UNI PROJECT IWDSFODF
RATINGS OF EACH VIDEO FOR UNI PROJECT IWDSFODFRATINGS OF EACH VIDEO FOR UNI PROJECT IWDSFODF
RATINGS OF EACH VIDEO FOR UNI PROJECT IWDSFODFCaitlinCummins3
 
How Do Venture Capitalists Make Decisions?
How Do Venture Capitalists Make Decisions?How Do Venture Capitalists Make Decisions?
How Do Venture Capitalists Make Decisions?Alejandro Cremades
 
HAL Financial Performance Analysis and Future Prospects
HAL Financial Performance Analysis and Future ProspectsHAL Financial Performance Analysis and Future Prospects
HAL Financial Performance Analysis and Future ProspectsRajesh Gupta
 
Pay after result spell caster (,$+27834335081)@ bring back lost lover same da...
Pay after result spell caster (,$+27834335081)@ bring back lost lover same da...Pay after result spell caster (,$+27834335081)@ bring back lost lover same da...
Pay after result spell caster (,$+27834335081)@ bring back lost lover same da...BabaJohn3
 
How to refresh to be fit for the future world
How to refresh to be fit for the future worldHow to refresh to be fit for the future world
How to refresh to be fit for the future worldChris Skinner
 
5 Brilliant Ways To Buy Verified Payoneer Accounts In 2024
5 Brilliant Ways To Buy Verified Payoneer Accounts In 20245 Brilliant Ways To Buy Verified Payoneer Accounts In 2024
5 Brilliant Ways To Buy Verified Payoneer Accounts In 2024https://localsmmshop.com/
 
stock price prediction using machine learning
stock price prediction using machine learningstock price prediction using machine learning
stock price prediction using machine learninggauravwankar27
 
Global Internal Audit Standards 2024.pdf
Global Internal Audit Standards 2024.pdfGlobal Internal Audit Standards 2024.pdf
Global Internal Audit Standards 2024.pdfAmer Morgan
 
MichaelStarkes_UncutGemsProjectSummary.pdf
MichaelStarkes_UncutGemsProjectSummary.pdfMichaelStarkes_UncutGemsProjectSummary.pdf
MichaelStarkes_UncutGemsProjectSummary.pdfmstarkes24
 
wagamamaLab presentation @MIT 20240509 IRODORI
wagamamaLab presentation @MIT 20240509 IRODORIwagamamaLab presentation @MIT 20240509 IRODORI
wagamamaLab presentation @MIT 20240509 IRODORIIRODORI inc.
 
Powerpoint showing results from tik tok metrics
Powerpoint showing results from tik tok metricsPowerpoint showing results from tik tok metrics
Powerpoint showing results from tik tok metricsCaitlinCummins3
 
ابو ظبي اعلان | - سايتوتك في الامارات حبوب الاجهاض للبيع ف حبوب الإجهاض ... ا...
ابو ظبي اعلان | - سايتوتك في الامارات حبوب الاجهاض للبيع ف حبوب الإجهاض ... ا...ابو ظبي اعلان | - سايتوتك في الامارات حبوب الاجهاض للبيع ف حبوب الإجهاض ... ا...
ابو ظبي اعلان | - سايتوتك في الامارات حبوب الاجهاض للبيع ف حبوب الإجهاض ... ا...brennadilys816
 
What is paper chromatography, principal, procedure,types, diagram, advantages...
What is paper chromatography, principal, procedure,types, diagram, advantages...What is paper chromatography, principal, procedure,types, diagram, advantages...
What is paper chromatography, principal, procedure,types, diagram, advantages...srcw2322l101
 
Top^Clinic ^%[+27785538335__Safe*Women's clinic//Abortion Pills In Harare
Top^Clinic ^%[+27785538335__Safe*Women's clinic//Abortion Pills In HarareTop^Clinic ^%[+27785538335__Safe*Women's clinic//Abortion Pills In Harare
Top^Clinic ^%[+27785538335__Safe*Women's clinic//Abortion Pills In Hararedoctorjoe1984
 
Exploring-Pipe-Flanges-Applications-Types-and-Benefits.pptx
Exploring-Pipe-Flanges-Applications-Types-and-Benefits.pptxExploring-Pipe-Flanges-Applications-Types-and-Benefits.pptx
Exploring-Pipe-Flanges-Applications-Types-and-Benefits.pptxTexas Flange
 
zidauu _business communication.pptx /pdf
zidauu _business  communication.pptx /pdfzidauu _business  communication.pptx /pdf
zidauu _business communication.pptx /pdfzukhrafshabbir
 
NFS- Operations Presentation - Recurrent
NFS- Operations Presentation - RecurrentNFS- Operations Presentation - Recurrent
NFS- Operations Presentation - Recurrenttoniquemcintosh1
 
The Risks of Ignoring Bookkeeping in Your Business
The Risks of Ignoring Bookkeeping in Your BusinessThe Risks of Ignoring Bookkeeping in Your Business
The Risks of Ignoring Bookkeeping in Your BusinessYourLegal Accounting
 

Recently uploaded (20)

Guide to Networking Essentials 8th Edition by Greg Tomsho solution manual.doc
Guide to Networking Essentials 8th Edition by Greg Tomsho solution manual.docGuide to Networking Essentials 8th Edition by Greg Tomsho solution manual.doc
Guide to Networking Essentials 8th Edition by Greg Tomsho solution manual.doc
 
RATINGS OF EACH VIDEO FOR UNI PROJECT IWDSFODF
RATINGS OF EACH VIDEO FOR UNI PROJECT IWDSFODFRATINGS OF EACH VIDEO FOR UNI PROJECT IWDSFODF
RATINGS OF EACH VIDEO FOR UNI PROJECT IWDSFODF
 
How Do Venture Capitalists Make Decisions?
How Do Venture Capitalists Make Decisions?How Do Venture Capitalists Make Decisions?
How Do Venture Capitalists Make Decisions?
 
HAL Financial Performance Analysis and Future Prospects
HAL Financial Performance Analysis and Future ProspectsHAL Financial Performance Analysis and Future Prospects
HAL Financial Performance Analysis and Future Prospects
 
Pay after result spell caster (,$+27834335081)@ bring back lost lover same da...
Pay after result spell caster (,$+27834335081)@ bring back lost lover same da...Pay after result spell caster (,$+27834335081)@ bring back lost lover same da...
Pay after result spell caster (,$+27834335081)@ bring back lost lover same da...
 
How to refresh to be fit for the future world
How to refresh to be fit for the future worldHow to refresh to be fit for the future world
How to refresh to be fit for the future world
 
5 Brilliant Ways To Buy Verified Payoneer Accounts In 2024
5 Brilliant Ways To Buy Verified Payoneer Accounts In 20245 Brilliant Ways To Buy Verified Payoneer Accounts In 2024
5 Brilliant Ways To Buy Verified Payoneer Accounts In 2024
 
stock price prediction using machine learning
stock price prediction using machine learningstock price prediction using machine learning
stock price prediction using machine learning
 
Global Internal Audit Standards 2024.pdf
Global Internal Audit Standards 2024.pdfGlobal Internal Audit Standards 2024.pdf
Global Internal Audit Standards 2024.pdf
 
MichaelStarkes_UncutGemsProjectSummary.pdf
MichaelStarkes_UncutGemsProjectSummary.pdfMichaelStarkes_UncutGemsProjectSummary.pdf
MichaelStarkes_UncutGemsProjectSummary.pdf
 
wagamamaLab presentation @MIT 20240509 IRODORI
wagamamaLab presentation @MIT 20240509 IRODORIwagamamaLab presentation @MIT 20240509 IRODORI
wagamamaLab presentation @MIT 20240509 IRODORI
 
WAM Corporate Presentation May 2024_w.pdf
WAM Corporate Presentation May 2024_w.pdfWAM Corporate Presentation May 2024_w.pdf
WAM Corporate Presentation May 2024_w.pdf
 
Powerpoint showing results from tik tok metrics
Powerpoint showing results from tik tok metricsPowerpoint showing results from tik tok metrics
Powerpoint showing results from tik tok metrics
 
ابو ظبي اعلان | - سايتوتك في الامارات حبوب الاجهاض للبيع ف حبوب الإجهاض ... ا...
ابو ظبي اعلان | - سايتوتك في الامارات حبوب الاجهاض للبيع ف حبوب الإجهاض ... ا...ابو ظبي اعلان | - سايتوتك في الامارات حبوب الاجهاض للبيع ف حبوب الإجهاض ... ا...
ابو ظبي اعلان | - سايتوتك في الامارات حبوب الاجهاض للبيع ف حبوب الإجهاض ... ا...
 
What is paper chromatography, principal, procedure,types, diagram, advantages...
What is paper chromatography, principal, procedure,types, diagram, advantages...What is paper chromatography, principal, procedure,types, diagram, advantages...
What is paper chromatography, principal, procedure,types, diagram, advantages...
 
Top^Clinic ^%[+27785538335__Safe*Women's clinic//Abortion Pills In Harare
Top^Clinic ^%[+27785538335__Safe*Women's clinic//Abortion Pills In HarareTop^Clinic ^%[+27785538335__Safe*Women's clinic//Abortion Pills In Harare
Top^Clinic ^%[+27785538335__Safe*Women's clinic//Abortion Pills In Harare
 
Exploring-Pipe-Flanges-Applications-Types-and-Benefits.pptx
Exploring-Pipe-Flanges-Applications-Types-and-Benefits.pptxExploring-Pipe-Flanges-Applications-Types-and-Benefits.pptx
Exploring-Pipe-Flanges-Applications-Types-and-Benefits.pptx
 
zidauu _business communication.pptx /pdf
zidauu _business  communication.pptx /pdfzidauu _business  communication.pptx /pdf
zidauu _business communication.pptx /pdf
 
NFS- Operations Presentation - Recurrent
NFS- Operations Presentation - RecurrentNFS- Operations Presentation - Recurrent
NFS- Operations Presentation - Recurrent
 
The Risks of Ignoring Bookkeeping in Your Business
The Risks of Ignoring Bookkeeping in Your BusinessThe Risks of Ignoring Bookkeeping in Your Business
The Risks of Ignoring Bookkeeping in Your Business
 

J.P. Morgan and the Princelings of China by @ericpesik

  • 1. J.P. Morgan and the Princelings of China
  • 4. “You know I have always been a big believer in the Sons and Daughters program – it almost has a linear relationship” with winning assignments to advise Chinese companies. Fang Fang, Former JP Morgan CEO, China Investment Banking
  • 5. Does this break the law?
  • 6. What are the elements of the FCPA?
  • 9. “to a foreign government official”
  • 10. “to obtain or retain a business advantage”
  • 12. Again: does this break the law???
  • 14. 1982: OK to hire a brother as long as no value passes to the official; 1984: OK to hire a close relative as long as no value passes to the official; 1995: OK to form joint venture with close relative as long as official duties not related to JV
  • 18. Summary: A job given to a relative is not a “thing of value” to the government official
  • 19. Compare donations to charity (Schering- Plough Case)
  • 20. In the Matter of Schering-Plough Corporation
  • 21. Joint DOJ & SEC guidance - gifts can be indirect influence
  • 22. Is a job to a relative an indirect influence?
  • 23. 2012: joint DOJ & SEC guidance to FCPA says “yes”
  • 25. Factual question - “it depends...”
  • 26. J.P. Morgan and the Princelings of China
  • 27. Source Acknowledgements: This presentation was strongly inspired by the debate between Professors Matthew Stephenson and Andy Spalding chronicled on their blogs at: • The Global Anticorruption Blog http://globalanticorruptionblog.com/?s=princeling&submit=Search • The FCPA Blog http://www.fcpablog.com/blog/tag/princelings Other Source Acknowledgements: • Slide 3 & 4 - New York Times Dealbook http://dealbook.nytimes.com/2014/05/21/former-top-china-jpmorgan-banker-said-to-be-arrested-in-hong-kong/?_r=0 • Slide 15 - DOJ Opinion Release 82-04 http://www.justice.gov/criminal/fraud/fcpa/review/ • Slide 16 - DOJ Opinion Release 84-01 http://www.justice.gov/criminal/fraud/fcpa/review/ • Slide 17 - DOJ Opinion Release 95-03 http://www.justice.gov/criminal/fraud/fcpa/opinion/ • Slide 20 – In the Matter of Schering-Plough Corporation https://www.sec.gov/litigation/admin/34-49838.htm • Slide 22 – DOJ Guidance http://www.justice.gov/criminal/fraud/fcpa/guidance/
  • 28. Image Acknowledgements: The images and fan art used in this presentation are based on Harry Potter created by J.K. Rowling and owned by Rowling, her publishers, and Time Warner, the owner of the rights to the Harry Potter films. American copyright law allows for the production, display, and distribution of derivative works if they fall under a fair use exemption, 17 U.S.C. § 107. • Slide 1 - Eat Slugs by Ninidu http://ninidu.deviantart.com/art/Eat-Slugs-175365149 • Slide 2 - Sepia_harusame, Harry Potter, Fred Weasley, Angelina Johnson, George Weasley, Lee Jordan by Overdoor http://www.zerochan.net/991755#full • Slide 5 - Voldemort Remake by Brosa http://brosa.deviantart.com/art/Voldemort-Remake-306475153 • Slide 6 - Voldemort by Brosa http://brosa.deviantart.com/art/Voldemort-200780027 • Slide 7 - Uncredited Harry Potter Fan Art http://potterart.tumblr.com/ • Slide 8 - Golden Snitch in Harry Potter's hand, Screenshot of film http://harrypotter.wikia.com/wiki/File:Snitch_2.png • Slide 9 -Albus Dumbledore by smthcrim89 http://smthcrim89.deviantart.com/art/Albus-Dumbledore-191047591 • Slide 10 - Ginny Weasley Harry Potter Hogwarts Quidditch Fan, http://wall4all.me/wallpaper/1151459-Ginny-Weasley-Harry-Potter-Hogwarts-Quidditch-fan-art • Slide 11 - Voldemort by Nicolasammarco http://brosa.deviantart.com/art/Voldemort-274703732 • Slide 12 - Voldemort by Brosa http://brosa.deviantart.com/art/Voldemort-200780027
  • 29. Image Acknowledgements (continued): The images and fan art used in this presentation are based on Harry Potter created by J.K. Rowling and owned by Rowling, her publishers, and Time Warner, the owner of the rights to the Harry Potter films. American copyright law allows for the production, display, and distribution of derivative works if they fall under a fair use exemption, 17 U.S.C. § 107. • Slide 13 - Hogwarts Castle by Seguraofhogwars2013 http://harrypotter.wikia.com/wiki/File:Hogwarts-castle-harry-potter-166431.jpg • Slide 14 –- Harry Potter Anime by Kaileyrox, http://kaileyrox.deviantart.com/art/Harry-Potter-Anime-254647509 • Slide 18 - Harry Potter Anime by Kaileyrox http://kaileyrox.deviantart.com/art/Harry-Potter-Anime-254647509 • Slide 19 - Gift wrapping by Lexic Alley https://www.etsy.com/listing/74624772/gift-wrapping • Slide 21 - Harry Potter Acceptance Letter https://www.etsy.com/sg-en/listing/234706310/classic-harry-potter-acceptance-letter • Professor Severus Snape by LeksaArt http://brosa.deviantart.com/art/Professor-Severus-Snape-281983243 • Slide 23- Minerva McGonagall, Screenshot of film http://www.jaepix.de/fandom/hp/McG/McGonagall.html • Slide 24 - First Year Hermione by KR0NPR1NZ http://kr0npr1nz.deviantart.com/art/First-Year-Hermione-506319432 • Slide 25 - Harry Potter Mischief by Kanae http://kanae.deviantart.com/art/Harry-Potter-Mischief-251770829 • Slide 26 - Eat Slugs by Ninidu http://ninidu.deviantart.com/art/Eat-Slugs-175365149

Editor's Notes

  1. J.P. Morgan and the Princelings of China This presentation was strongly inspired by the debate between Professors Matthew Stephenson and Andy Spalding chronicled on their blogs at: The Global Anticorruption Blog http://globalanticorruptionblog.com/?s=princeling&submit=Search The FCPA Blog http://www.fcpablog.com/blog/tag/princelings Image: Eat Slugs by Ninidu Fan Art based on Harry Potter created by J.K. Rowling http://ninidu.deviantart.com/art/Eat-Slugs-175365149
  2. “Sons and Daughters” Program Image: Sepia_harusame, Harry Potter, Fred Weasley, Angelina Johnson, George Weasley, Lee Jordan by Overdoor Fan Art based on Harry Potter created by J.K. Rowling http://www.zerochan.net/991755#full
  3. New York Times Dealbook Former Chief of JPMorgan’s China Unit Is Arrested http://dealbook.nytimes.com/2014/05/21/former-top-china-jpmorgan-banker-said-to-be-arrested-in-hong-kong/?_r=0
  4. “You know I have always been a big believer in the Sons and Daughters program – it almost has a linear relationship” with winning assignments to advise Chinese companies. Fang Fang, Former JP Morgan CEO, China Investment Banking Source: New York Times Dealbook Former Chief of JPMorgan’s China Unit Is Arrested http://dealbook.nytimes.com/2014/05/21/former-top-china-jpmorgan-banker-said-to-be-arrested-in-hong-kong/?_r=0
  5. Does this break the law? Image: Voldemort Remake by Brosa Fan Art based on Harry Potter created by J.K. Rowling http://brosa.deviantart.com/art/Voldemort-Remake-306475153
  6. What are the elements of the FCPA? Image: Voldemort by Brosa Fan Art based on Harry Potter created by J.K. Rowling http://brosa.deviantart.com/art/Voldemort-200780027
  7. “giving or offering to give” Image: Uncredited Harry Potter Fan Art based on Harry Potter created by J.K. Rowling http://potterart.tumblr.com/
  8. “anything of value” Image: A Golden Snitch in Harry Potter's hand Screenshot of film, Harry Potter and the Philosopher's Stone, created by J.K. Rowling http://harrypotter.wikia.com/wiki/File:Snitch_2.png
  9. “to a foreign government official” Image: Albus Dumbledore by smthcrim89 Fan Art based on Harry Potter created by J.K. Rowling http://smthcrim89.deviantart.com/art/Albus-Dumbledore-191047591
  10. “to obtain or retain a business advantage” Image: Ginny Weasley Harry Potter Hogwarts Quidditch Fan Uncredited Harry Potter Fan Art based on Harry Potter created by J.K. Rowling http://wall4all.me/wallpaper/1151459-Ginny-Weasley-Harry-Potter-Hogwarts-Quidditch-fan-art
  11. “with corrupt intent” Image: Voldemort by Nicolasammarco Fan Art based on Harry Potter created by J.K. Rowling http://brosa.deviantart.com/art/Voldemort-274703732
  12. ??? Image: Voldemort by Brosa Fan Art based on Harry Potter created by J.K. Rowling http://brosa.deviantart.com/art/Voldemort-200780027
  13. D.O.J. Opinion Releases Imag: Hogwarts Castle by Seguraofhogwars2013 Fan Art based on Harry Potter created by J.K. Rowling http://harrypotter.wikia.com/wiki/File:Hogwarts-castle-harry-potter-166431.jpg
  14. 1982: OK to hire a brother as long as no value passes to the official 1984: OK to hire a close relative as long as no value passes to the official 1995: OK to form joint venture with close relative as long as official’’’’ duties not related to JV Image: Harry Potter Anime by Kaileyrox Fan Art based on Harry Potter created by J.K. Rowling http://kaileyrox.deviantart.com/art/Harry-Potter-Anime-254647509
  15. DOJ Opinion Release 82-04 http://www.justice.gov/criminal/fraud/fcpa/review/
  16. DOJ Opinion Release 84-01 http://www.justice.gov/criminal/fraud/fcpa/review/
  17. DOJ Opinion Release 95-03 http://www.justice.gov/criminal/fraud/fcpa/opinion/
  18. A job given to a relative is not a “thing of value” to the government official Image: Harry Potter Anime by Kaileyrox Fan Art based on Harry Potter created by J.K. Rowling http://kaileyrox.deviantart.com/art/Harry-Potter-Anime-254647509
  19. Compare donations to charity (Schering-Plough Case) Image: Gift wrapping by Lexic Alley Handmade pillow box covered in Harry Potter book pages https://www.etsy.com/listing/74624772/gift-wrapping
  20. In the Matter of Schering-Plough Corporation https://www.sec.gov/litigation/admin/34-49838.htm
  21. Joint DOJ & SEC guidance - gifts can be indirect influence Image: Harry Potter Acceptance Letter  Handmade Hogwarts Acceptance Letter https://www.etsy.com/sg-en/listing/234706310/classic-harry-potter-acceptance-letter
  22. Is a job to a relative an indirect influence? Image: Professor Severus Snape by LeksaArt Fan Art based on Harry Potter created by J.K. Rowling http://brosa.deviantart.com/art/Professor-Severus-Snape-281983243
  23. 2012: joint DOJ & SEC guidance to FCPA says “yes” http://www.justice.gov/criminal/fraud/fcpa/guidance/ Image: Minerva McGonagall Screenshot of film, Harry Potter and the Philosopher's Stone, created by J.K. Rowling http://www.jaepix.de/fandom/hp/McG/McGonagall.html
  24. Always? Sometimes? Never? Image: First Year Hermione by KR0NPR1NZ Fan Art based on Harry Potter created by J.K. Rowling http://kr0npr1nz.deviantart.com/art/First-Year-Hermione-506319432
  25. “It depends...” Image: Harry Potter Mischief by Kanae Fan Art based on Harry Potter created by J.K. Rowling http://kanae.deviantart.com/art/Harry-Potter-Mischief-251770829
  26. J.P. Morgan and the Princelings of China This presentation was strongly inspired by the debate between Professors Matthew Stephenson and Andy Spalding chronicled on their blogs at: The Global Anticorruption Blog http://globalanticorruptionblog.com/?s=princeling&submit=Search The FCPA Blog http://www.fcpablog.com/blog/tag/princelings Image: Eat Slugs by Ninidu Fan Art based on Harry Potter created by J.K. Rowling http://ninidu.deviantart.com/art/Eat-Slugs-175365149