Insight Center: News

Gregory A. Paw Quoted in The Huffington Post and The Deal on the Bribery Law Loophole


Pepper Hamilton partner Gregory A. Paw was quoted in the April 26, 2012 issue of The Huffington Post. The article, "Bribery Law Loophole Leads to Confusion and Abuse, Lawyers Say," discusses a loophole in a U.S. anti-bribery law that allows companies to offer "facilitating payments."

Paw said clients call him "all the time" to weigh in on whether a modest payment is legal. The issue is particularly pernicious in Latin America, he noted, where customs officials often demand bribes in order to release products into the market. His advice is almost always the same: Don't pay. "You establish over time that you just don't make these payments," he said. Not paying a bribe might cause some headaches, he added, "but that's better than being on the front page of The New York Times."

Paw also was quoted in the April 27, 2012 issue of The Deal in the article, "Statute of Limitations Will Shape Wal-Mart Case." Paw states the first step for Wal-Mart would be to establish a relationship with the government and commit to cooperating. He also said Wal-Mart would proceed with its own investigation to see if there are continuing FCPA violations, then formulate a remediation plan. The next step would be to present the Justice Department with what it found and how it plans to address violations. It's unlikely, he said, that the government would "walk away."