WorldECR References Partner Eric McClafferty in Flowserve Investigation
Partner Eric McClafferty was referenced in the WorldECR article, “Putting Its Money Where Its Mouth Is.” The article discusses the choice that Flowserve, a U.S. headquartered provider of flow control products and services, made to enter into settlement agreements with both the Commerce Department’s Bureau of Industry and Security and the Treasury Department’s Office of Foreign Assets Control for voluntary disclosures of breaches of export controls and economic sanctions. This investigation, which resulted in a penalty of around $3 million, was landmark, as many talk about their commitment to export controls compliance but few actually embark on a global audit of their systems.
Kelley Drye & Warren partner, Eric McClafferty served as lead lawyer on the case from the beginning. Flowserve viewed bringing in help early on “provided greater independence, additional expertise, and constructive engagement with government regulators.” Sullivan, Flowserve’s Vice-president of Global Trade, Compliance & Corporate Inquiries went on to say that this was “a symbiotic relationship which leveraged the strength of each of the parties. We know the business and the operations. Outside counsel is an expert on the law. So we were able to pair those two up and develop a lot of quick processes and evaluative tools in identifying where we had problems and risks.”