Rick Hartunian, partner, was featured in the Anti-Corruption Report article “Balt Settlement: New DOJ Policies in Action,” which examines a recent enforcement action involving Balt SAS, a French medical device company, in which the US Department of Justice (DOJ) declined to prosecute the company despite an alleged international bribery scheme tied to its US subsidiary. The misconduct involved payments to a physician at a French public hospital to influence purchasing decisions, in violation of the Foreign Corrupt Practices Act (FCPA) and French anti-corruption laws. While the DOJ declined corporate prosecution under its newly issued Department-wide Corporate Enforcement Policy (Unified CEP), it simultaneously indicted two individuals connected to the scheme, reinforcing its focus on individual accountability.
The article highlights how Balt secured a declination by voluntarily self-disclosing misconduct, fully cooperating with authorities, and undertaking significant remediation efforts, including compliance enhancements and disciplinary actions. The case serves as an early example of the DOJ’s Unified CEP in practice and underscores the benefits—and risks—of self-reporting. As Rick noted, the resolution “is an example of the new policy at work,” reflecting a more streamlined and predictable framework for companies navigating enforcement decisions. He further emphasized the challenge companies face in deciding whether to self-report, explaining that “it is a very difficult decision for a company to determine when it is necessary and appropriate to self-report, because you do not really know how your report is going to be received.”
The matter also illustrates broader DOJ enforcement priorities, including continued FCPA enforcement and an emphasis on prosecuting culpable individuals rather than corporations when appropriate. Rick observed that the policy aims to provide clearer guidance, noting that when key factors—self-disclosure, cooperation, remediation, and absence of aggravating circumstances—are met, “it is pretty clear these four factors were satisfied by the company.” The Balt resolution signals increased DOJ willingness to issue declinations while maintaining robust cross-border coordination with foreign regulators and prioritizing accountability for individual actors.
Anti-Corruption Report subscribers can read the full article here.