March 25, 2015 — The Foreign Corrupt Practices Act (FCPA) is a powerful weapon to stop corporations from attempting to win or retain business abroad by making bribe payments to or bestowing lavish gifts on foreign government officials or their family members. Since the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 instituted a whistleblower program, anyone can collaborate with the government by notifying the Justice Department or the Securities and Exchange Commission (SEC) about foreign bribery operations. Dodd-Frank allows for substantial financial rewards to insider informants who blow the whistle on FCPA violations.
Flowserve Discloses Potential Foreign Bribery Misconduct to SEC and DOJ
Flowserve Corp. has disclosed in a securities filing that it is investigating a potential FCPA violation.
Flowserve, the manufacturer of valves and pumps, was also a former maker and distributor of asbestos-containing products used in conjunction with its products. The company has been sued in a number of mesothelioma lawsuits.
In its SEC filing, Flowserve revealed that it has uncovered an employee working in an overseas subsidiary who violated the manufacturer’s code of conduct and may also have engaged in FCPA violations. Flowserve claims to have fired the employee and to have initiated an internal review of the employee’s potential misconduct. The company has reported its findings thus far to the SEC and the DOJ.
Flowserve agreed in 2008 to pay a $4 million penalty to resolve allegations that it paid kickbacks to the Iraqi government in an effort to obtain business there related to the United Nations Oil for Food program.
Contact Us to Notify Government About FCPA Violations
Flowserve Corp. has disclosed in a contact us by email or call our qui tam attorneys at 800.226.9880 to learn more about our practice and how we can collaborate with the government to redress illegal foreign bribery schemes. Our experienced lawyers, such as George Tankard and Anne Izzo in the firm’s Maryland office, are working to level the playing field in international business operations.