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FBN’s Liz MacDonald on the growing investigation into allegations of bribery overseas by U.S. companies.
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The investigations.
Are now heating up as we told you just moments ago breaking news the Mexican attorney general has now opened.
What's called a preliminary investigation into allegations linked to wal mart's Mexican arm.
Allegations of widespread bribery to make sure the permits were approved to get stores built more quickly.
Down there was mcdonalds here now with more on the cost of doing international business -- don't do it right.
-- that's right -- that we had earlier breaking news Bristol-Myers Squibb subpoenaed by the SEC.
A possible growing as expansion into bribery there.
Not knowing we don't know yet which offices overseas are involved Avon another executive stepped down today.
A growing bribery probe there from the Department of Justice this involves China and so these companies not to small like joint -- growing list of companies.
-- HP.
Disney all roped into bright bribery pros by the US government 81 probe is ongoing right now and we've seen a doubling and tripling of government probes into bribery.
Over -- second impact eight of the ten biggest record.
Bribery the penalties and fines came in 2010.
We should we should put a dollar figure on this you know if you are guilty of a for a foreign corrupt practices violation could be two million dollar fine per.
Violation -- its equity multiples of that and so the other -- to is that Wal-Mart Wal-Mart lost twelve -- billion in market cap because appears is that the top executives that have to leave.
And also penalties but you know the issue -- that we are seeing.
And we're talking to white collar lawyers lawyers is how can Wal-Mart defend itself and this is a big deal.
There is a loophole that was put into place by the government and 1988.
Which basically says that you can pay money to facilitate.
To expedite government things like you know needing to get visas -- work permits the salons don't influence the outcome and so we have the -- some description there these guys I want a -- up.
It's for licenses -- for work -- it's for things like get police protection mail services severe bright lines around the publicity that we don't care about what -- what I think in the -- what matters is -- cover -- that that they're gonna that's going to be more problematic that's right and they called it legal expenses and and whether or not it's pervasive that's where the investigation like without when it allegedly gets all the way to Bentonville Arkansas to cover up that's right the problem -- thank you very.
