During the recently completed third quarter of 2017, the Department of Justice resolved one matter and the Securities and Exchange Commission resolved two matters. While this was a slow quarter in terms of the number of enforcement actions, the financial impact was significant as the Telia global settlement involved financial penalties and disgorgement of approximately $965 million to be allocated between U.S., Dutch, and Swedish authorities.

1. GLOBAL INVESTIGATIONS AND COMPLIANCE
FCPA Q3 2017 —
QUARTERLY REPORT
By Ellen Zimiles, John Loesch, Jay Perlman,
Alex Shea
I. FCPA Q3 2017 REPORT
During the recently completed third quarter of 2017, the Department of Justice (DOJ)
resolved one matter and the Securities and Exchange Commission (SEC) resolved
two matters. While this was a slow quarter in terms of the number of enforcement
actions, the financial impact was significant as the Telia global settlement involved
financial penalties and disgorgement of approximately $965 million to be allocated
between U.S., Dutch, and Swedish authorities. Public statements from both the DOJ
and the SEC seem to indicate that enforcement of the Foreign Corrupt Practices Act
(FCPA) remains a high priority for both, so no conclusions should be drawn from the
minimal enforcement activity this quarter. In fact, some sources note that more than
125 companies are either under investigation by the DOJ/SEC or are conducting their
own internal investigations.
II. ENFORCEMENT ACTIVITY IN Q3 2017
A. Halliburton Company
On July 27, Halliburton Company (“Halliburton”)(NYSE: HAL) agreed to
pay financial penalties of more than $29.2 million, including $14 million in
disgorgement, $1.2 million in prejudgment interest, and a $14 million civil penalty
to the SEC for violating the FCPA’s books and records and internal accounting
controls provisions. As part of the settlement, Halliburton also agreed to obtain
an independent consultant for 18 months to review and evaluate Halliburton’s
anti-corruption policies and procedures in Africa. According to the SEC’s order,
officials at Angola’s state-owned oil company, Sonangol, advised Halliburton in
2008 that it was required to partner with more local Angolan-owned businesses
to satisfy local content regulations for foreign firms in Angola. Jeannot Lorenz,
a former Halliburton vice president, was tasked with managing that effort for
Halliburton. Lorenz retained a local Angolan company owned by a former
Halliburton employee who was a friend of the Sonangol official who approved the
awarding of the contracts. Halliburton outsourced more than $13 million worth
of business to the local Angolan company. Lorenz failed to conduct competitive
bidding, a violation of Halliburton policies, and avoided an internal accounting
control that required contracts of more than $10,000 in high-corruption-risk
countries to be reviewed and approved by a special Halliburton committee.
Lorenz agreed to pay $75,000 to the SEC for causing the company’s violations by
circumventing internal accounting controls and falsifying books and records.1
1. Securities and Exchange Commission, Order Instituting Cease and Desist Proceedings, In the Matter of Halliburton
Company and Jeannot Lorenz (July 27, 2017) (File No. 3-18080).

2. 2
B. Telia Company AB and Coscom LLC
On Sept. 21, Telia Company AB (“Telia”)(NASDAQ: TELIA)
and its Uzbek subsidiary, Coscom LLC, agreed to pay
approximately $965 million in a global settlement with
the SEC, DOJ, and Dutch and Swedish law enforcement
to resolve charges related to violations of the FCPA.
The total payment includes a $274.6 million criminal
penalty to the DOJ, $457 million of disgorgement to the
SEC, and a $274 million criminal penalty to the Dutch
Openbaar Ministerie (“OM”), but the SEC agreed to
credit $40 million in forfeiture paid to OM.2
The SEC also
agreed to credit up to half the disgorgement amount
for disgorgement paid to the Swedish authorities. The
combined settlement amount moves Telia into the
top-five all-time of FCPA settlements. Telia entered
the Uzbek telecommunications market by offering and
paying at least $330 million in bribes from 2007 to 2010.
Telia sent the bribes to a shell company under the guise
of payments for lobbying and consulting services. An
Uzbek government official, who was a family member
of the president of Uzbekistan, controlled the shell
company and influenced Uzbek officials to take actions
beneficial to Telia’s business in Uzbekistan. Telia’s bribes
allowed Coscom LLC to gain valuable telecom assets and
to continue successful operations in Uzbekistan.3
C. Alere Inc.
On Sept. 28, Alere Inc. (“Alere”)(NYSE: ALR) agreed to
pay more than $13 million to the SEC to settle charges
that it committed accounting fraud, and bribed
foreign officials to increase sales in certain countries.
According to the settlement documents, Alere’s South
Korean subsidiary inflated revenues by prematurely
recording sales for products still stored at warehouses
and not yet delivered to customers. The SEC also
found that, between 2011 and 2013, Alere subsidiaries
in India and Colombia bribed government officials
using distributors or consultants to obtain or retain
business. The SEC settlement alleged that Alere failed
to maintain adequate internal controls to prevent the
payments, and inaccurately recorded the payments in
its books and records.4
III. WHAT THE ENFORCERS ARE SAYING
International cooperation and the rule of law were
themes highlighted by speakers from the Department
of Justice. Acting Assistant Attorney General Kenneth
A. Blanco spoke at the Atlantic Council Inter-American
Dialogue Event in Washington, D.C., on July 19, 2017.5
The topic of his speech was “Lessons from Brazil: Crisis,
Corruption, and Global Cooperation.” Blanco stated
that the “United States Department of Justice remains
committed to enforcing the FCPA and to prosecuting
fraud and corruption more generally. To succeed on this
commitment, we will always seek, when appropriate,
to further our investigations through cooperation
with countries like Brazil — a country that shares our
commitment to rooting out corruption at all level.” He
cited the Embraer, Rolls-Royce, Braskem, and Odebrecht
cases as great examples where the Criminal Division’s
Fraud Section and Brazilian prosecutors have cooperated
and coordinated resolutions. “By working together, Brazil
and the department not only assisted one another in
gathering evidence and building the case, but made sure
to credit the fines and penalties paid to each country,
rather than imposing duplicative fines and penalties.
This ensures fairness to the companies, and provides the
right incentives for companies to cooperate fully with
the relevant jurisdictions implicated in the case.” Blanco
concluded by emphasizing the DOJ’s commitment to
international cooperation. “Together we will ensure that
there is no place for corrupt individuals to hide, and no
place for them to hide their money, assets, or any kind of
wealth. No refuge or rest for the wicked.”
Deputy Attorney General Rod J. Rosenstein delivered
two speeches a few days apart in September, in which he
talked about the importance of the “rule of law.” On Sept.
14, 2017, Rosenstein gave “A Constitution Day Address” at
the Heritage Foundation in Washington, D.C.6
He said that
“the rule of law is the foundation of America. … Keeping
the peace and fighting corruption is hard work. Turning a
blind eye and ignoring the consequences is usually easier,
and often more lucrative, at least in the short term. But in
the long run, defending the rule of law is the best way to
maintain liberty.” During a question-and-answer session
2. U.S. Department of Justice Press Release, “Telia Company AB and its Uzbek Subsidiary Enter Into a Global Foreign Bribery Resolution of More than $965 Million for Corrupt
Payments in Uzbekistan,” Sept. 21, 2017.
3. Securities and Exchange Commission, SEC Order Instituting Cease and Desist Proceedings, In the Matter of Telia Company AB, Sept. 21, 2017. (File No. 3-18195).
4. Securities and Exchange Commission, SEC Order Instituting Cease and Desist Proceedings, In the Matter of Alere Inc., Sept. 28, 2017, (File No. 3-18228).
5. Department of Justice, Acting Attorney General Kenneth A. Blanco Speaks at the Atlantic Council Inter-American Dialogue Event, “Lessons from Brazil: Crisis, Corruption,
and Global Cooperation,” Washington, D.C., July 19, 2017, https://www.justice.gov/opa/speech/acting-assistant-attorney-general-kenneth-blanco-speaks-atlantic-council-inter-
american-1.
6. Department of Justice, Deputy Attorney General Rod J. Rosenstein Delivers Remarks at “A Constitution Day Address” Hosted by the Heritage Foundation, Washington, D.C., Sept.
14, 2017, https://www.justice.gov/opa/speech/deputy-attorney-general-rod-j-rosenstein-delivers-remarks-constitution-day-address-hosted.

3. 3
following his remarks, Rosenstein revealed that the DOJ’s
policy on prosecuting corporations is under review and
that changes are forthcoming. “It’s under review and I
anticipate that there may be some change to the policy on
corporate prosecutions. I don’t have any announcement
about that today, but I do anticipate that we may in the
near future make an announcement about what changes
we’re going to make to corporate fraud principles.”7
On Sept. 18, 2017, Rosenstein spoke to students at the
University of Pennsylvania as part of the Penn Wharton
Public Policy Initiative.8
His speech was titled “Ethics,
Business, and the Rule of Law.” He told the students that
their “commitment to ethical business practices and to
corporate compliance is the country’s first line of defense
against business crimes and other threats to our nation’s
safety and security.” In addition, ethics in business can
act as a force multiplier. “When ethical business practices
are widespread, law enforcement can focus on the most
dangerous categories of criminals, for whom law-abiding
conduct and self-policing would never be a reasonable
expectation,” Rosenstein said. Thus, “the collective
actions of the business community affect our allocation
of resources,” and ultimately DOJ’s ability to enforce the
rule of law.
Special thanks to Andrew Lind, who contributed to
this article.
7. Josh Gerstein, “Rosenstein signals changes coming on corporate-crime prosecution policy,” Politico, Sept. 14, 2017.
8. Department of Justice, Deputy Attorney General Rod J. Rosenstein Delivers Remarks at the Penn Wharton Public Policy Initiative Titled, “Ethics, Business and the Rule of Law,”
Philadelphia, Pa., Sept. 18, 2017, https://www.justice.gov/opa/speech/deputy-attorney-general-rod-j-rosenstein-delivers-remarks-penn-wharton-public-policy.

4. linkedin.com/company/navigant
twitter.com/navigant
©2017 Navigant Consulting, Inc. All rights reserved. W22283
Navigant Consulting, Inc. (“Navigant”) is not a certified public accounting or audit firm. Navigant does not provide audit, attest, or public accounting services. See navigant.com/about/legal for a complete listing of private
investigator licenses.
This publication is provided by Navigant for informational purposes only and does not constitute consulting services or tax or legal advice. This publication may be used only as expressly permitted by license from Navigant and
may not otherwise be reproduced, recorded, photocopied, distributed, displayed, modified, extracted, accessed, or used without the express written permission of Navigant.
CONTACTS
ELLEN ZIMILES
Managing Director
Financial Services Advisory and Compliance Segment Leader
+1.212.554.2602
ellen.zimiles@navigant.com
JOHN LOESCH
Director
+1.202.973.3235
john.loesch@navigant.com
JAY PERLMAN
Director
+1.202.973.3220
jay.perlman@navigant.com
ALEX SHEA
Director
+1.212.554.2682
alex.shea@navigant.com
navigant.com
About Navigant
Navigant Consulting, Inc. (NYSE: NCI) is a specialized, global professional services firm
that helps clients take control of their future. Navigant’s professionals apply deep industry
knowledge, substantive technical expertise, and an enterprising approach to help clients
build, manage, and/or protect their business interests. With a focus on markets and clients
facing transformational change and significant regulatory or legal pressures, the firm
primarily serves clients in the healthcare, energy, and financial services industries. Across
a range of advisory, consulting, outsourcing, and technology/analytics services, Navigant’s
practitioners bring sharp insight that pinpoints opportunities and delivers powerful results.
More information about Navigant can be found at navigant.com.