Foreign Corrupt Practices Act: What type of bribery is illegal?
Congress passed the Foreign Corrupt Practices Act in 1997 to prevent U.S. corporations from bribing officials of foreign governments. As law enforcement officials have begun to crack down on violators, critics say the law is too vague and that it is unclear who qualifies as a “foreign official.”
In May 2011, executives of California-based Lindsey Manufacturing were convicted of bribing employees of the Comision Federal de Electricidad, an electric utility owned by the government of Mexico. According to the Justice Department, those bribes included a $297,500 Ferrari Spyder and a $1.8 million yacht.
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