Wal-Mart CEO Michael Duke at risk in bribery accusations

Wal-Mart’s CEO Michael Duke could be the first top executive of a major U.S. company that could be charged in connection with U.S.’s Foreign Corrupt Practices Act bribery law (FCPA). FCPA experts and lawyers say that Duke and other top Wal-Mart officials may have violated the law when they allegedly signed off on a flawed investigation of widespread bribery at the company’s Mexican division. Another potentially damaging factor for Duke is that it took several years for Wal-Mart officials to report to shareholders and government regulators about the potential mishandlings, long after he and other top executives reportedly knew about the reported bribes.

According to an article published in the New York Times this weekend, Duke has known about the alleged bribes since 2005, but company officials reportedly informed law enforcement officials about the potential abuses in December, which was after the Times told Wal-Mart the paper was investigating the matter. The Department of Justice is reportedly conducting a criminal investigation of the Wal-Mart bribery allegations. The Securities and Exchange Commission is investigating as well. On Monday, House Democrats said they would also investigate the allegations of the bribery by the world’s largest retailer.