Private Equity Benefits From Post-Acquisition Compliance Disclosure

Earlier this summer, the U.S. Department of Justice's (DOJ) National Security Division (NSD) and the U.S. Attorneys' Office for the Southern District of Texas issued a press release announcing that they declined the prosecution of a private equity firm (PE Firm) and certain affiliates after the PE Firm discovered and voluntarily self-disclosed criminal violations of U.S. sanctions and export laws committed by a company it acquired.

This is the first declination of prosecution of an acquiror under the NSD's new Mergers and Acquisitions (M&A) Policy, which is part of the NSD's revised Enforcement Policy for Business Organizations (Corporate Enforcement Policy) and only the third declination under the Corporate Enforcement Policy.

Click "Download PDF" to read Mauricio Escobar's full article.