Posts Tagged With FCPA

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Former Head of Organization Backed by Chinese Energy Conglomerate Convicted of International Bribery, Money Laundering Offenses

On December 5, 2018, a federal jury in New York convicted the head of a Hong Kong- and Virginia-based nongovernmental organization on seven criminal counts for his participation in a multi-year, multimillion-dollar scheme to bribe top officials of Chad and Uganda to secure business advantages for a Chinese oil and gas conglomerate.  According to trial evidence and court documents, the defendant, Chi Ping Patrick Ho, was involved in two schemes: offering a $2 million bribe
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Deputy Attorney General Rod J. Rosenstein Delivers Remarks at the American Conference Institute’s 35th International Conference on the Foreign Corrupt Practices Act

On November 29, 2018, Deputy Attorney General Rod Rosenstein clarified several aspects of the DOJ’s corporate cooperation and resolution policies in remarks at the American Conference Institute’s 35th International Conference on the Foreign Corrupt Practices Act.  With respect to cooperation credit, Rosenstein acknowledged that, when the government alleges criminal conduct that continued at the company over a long period of time, it may not be reasonable or practical to require companies to identify every employee
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Malaysian Financier and Former Banker Indicted for Conspiring to Launder Billions of Dollars in Illegal Proceeds and to Pay Hundreds of Millions of Dollars in Bribes

On November 1, 2018, an indictment was unsealed charging two individuals with conspiring to violate the FCPA and to launder billions of dollars embezzled from Malaysia’s investment development fund, 1Malaysia Development Berhad (“1MDB”), between approximately 2009 and 2014.  The first individual, known as “Jho Low,” is a Malaysian financier, while the other, known as “Roger Ng,” is a former managing director at a New York-based financial institution (the “Financial Institution”).  On the same day that
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Principal Deputy Assistant Attorney General John P. Cronan Delivers Remarks Regarding DOJ Priorities, Policies, and Enforcement Activity

Principal Deputy Assistant Attorney General John P. Cronan of DOJ’s Criminal Division delivered wide-ranging remarks at three separate events in October and November, outlining for audiences the policy rationales and practical considerations of several DOJ policies.  In particular, Cronan highlighted the use of the FCPA Corporate Enforcement Policy as “nonbinding guidance” in non-FCPA cases, stressing the importance of early self-disclosure and the need to provide a “regular and consistent flow” of information as internal investigations
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Oil Services CEO and Executive Sentenced to Prison for Roles in Foreign Bribery Scheme

On September 28, 2018, Anthony Mace, a former CEO of SBM Offshore, N.V. (“SBM”), a Dutch oil services company, was sentenced to 36 months in prison and a fine of $150,000.  Robert Zubiate, a former sales and marketing executive for SBM Offshore USA Inc. (“SBM USA”), a U.S.-based subsidiary, was also sentenced to 30 months in prison and a fine of $50,000.  Both Mace and Zubiate pleaded guilty to one count of conspiracy to violate
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Deputy Assistant Attorney General Matthew S. Miner of the Justice Department’s Criminal Division Delivers Remarks at the 5th Annual GIR New York Live Event

On September 27, 2018, Deputy Assistant Attorney General Matthew S. Miner delivered a speech to attendees of the Global Investigations Review’s annual conference in New York, addressing recent Criminal Division policy developments and providing an overview of the Division’s white collar enforcement activity during Fiscal Year 2018.  Miner highlighted the late-2017 rollout of the Foreign Corrupt Practices Act (“FCPA”) Corporate Enforcement Policy and extension of the Policy in early 2018 as “nonbinding guidance” to non-FCPA
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Petróleo Brasileiro S.A. – Petrobras Agrees to Pay More Than $850 Million for FCPA Violations

On September 27, 2018, Petróleo Brasileiro S.A. – Petrobras (“Petrobras”), a Brazilian state-owned energy company, entered into a non-prosecution agreement and agreed to pay $853 million to U.S. and Brazilian authorities to resolve an investigation into FCPA violations.  As part of the agreement, Petrobras acknowledged that while its American Depository Shares traded on the New York Stock Exchange, members of the company’s Executive Board (its high-level managers) facilitated millions of dollars in improper payments to
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Financial Advisor Pleads Guilty to Money Laundering Charge in Connection with Bribery Scheme Involving Ecuadorian Officials

On September 11, 2018, Jose Larrea, a Miami-based financial advisor, pleaded guilty to a money laundering conspiracy charge for his involvement in a scheme to bribe officials at Ecuador’s state-owned oil company, PetroEcuador.  Larrea admitted to wiring more than $1 million in funds to conceal the bribes, which an oil services contractor paid to PetroEcuador officials to secure business.  Larrea is the fourth individual to plead guilty in this case.

United States v. Larrea,
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Former FIFA Executive, President of CONMEBOL, and Paraguayan Soccer Official Sentenced to Nine Years in Prison for Racketeering and Corruption Offenses

On August 29, 2018, Juan Ángel Napout—a former FIFA Vice President and president of CONMEBOL, the confederation responsible for soccer in South America—was sentenced to nine years’ imprisonment and ordered to pay a fine of $1 million and forfeit over $3.3 million.   A jury convicted Napout in December 2017 of charges arising from his acceptance of millions of dollars in bribes in exchange for media rights to soccer tournaments.  The tournaments included two cycles of
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Former Swiss Bank Executive Pleads Guilty to Role in Billion-Dollar International Money Laundering Scheme Involving Funds Embezzled from Venezuelan State-Owned Oil Company

On August 22, 2018, the former vice chairman of a Swiss bank pleaded guilty to a money-laundering conspiracy charge in connection with an alleged scheme to launder $1.2 billion that had been embezzled from Venezuelan state-owned oil company PDVSA.  According to his plea agreement, starting in 2016, Matthias Krull assisted several Venezuelan clients in laundering embezzled PDVSA funds through fictitious investment schemes and real estate transactions.  Krull, who was arrested on several additional charges in
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Credit Suisse’s Investment Bank in Hong Kong Agrees to Pay $47 Million Criminal Penalty for Hiring Scheme That Violated the FCPA

On July 5, 2018, federal authorities announced a non-prosecution agreement with Credit Suisse (Hong Kong) Limited (“CSHK”) in connection with alleged FCPA violations stemming from the bank’s hiring of friends and relatives of Chinese government officials between 2007 and 2013.  According to admissions made by CSHK, senior managers in the bank’s Asia-Pacific region hired and promoted candidates referred to them by government officials to win investment banking business.  In some cases, so-called “relationship hires” or
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Legg Mason, Inc. Agrees to Pay $64 Million in Criminal Penalties and Disgorgement to Resolve FCPA Charges Related to Bribery of Gaddafi-Era Libyan Officials

On June 4, 2018, DOJ officials announced a non-prosecution agreement with investment management firm Legg Mason, Inc., which agreed to pay $64 million in penalties and disgorgement to resolve FCPA liability related to bribery of officials of Libyan state-owned financial institutions.  According to the agreed-upon statement of facts in the resolution, Legg Mason subsidiary Permal Group Ltd. (“Permal”) partnered with Paris-based multinational bank Société Générale S.A. (“SocGen”) to solicit investment management business from Libyan state-owned
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Société Générale S.A. Agrees to Pay $860 Million in Criminal Penalties for Bribing Gaddafi-Era Libyan Officials and Manipulating LIBOR Rate

On June 4, 2018, U.S. officials announced agreements with Paris-based multinational bank Société Générale S.A. (“SocGen”) and one of its subsidiaries to resolve charges related to a multi-year scheme to bribe Libyan government officials and separate charges related to manipulation of the London Interbank Offered Rate (“LIBOR”).  SocGen and subsidiary SGA Société Générale Acceptance N.V. (“SGA”) agreed to pay more than $1 billion in penalties and disgorgement in connection with the resolutions, and SGA agreed
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Panasonic Avionics Corporation Agrees to Pay $137 Million to Resolve Foreign Corrupt Practices Act Charges

On April 30, 2018, DOJ officials announced that Panasonic Avionics Corp. (“PAC”), a subsidiary of publicly traded Panasonic Corporation (“Panasonic”), agreed to pay a $137 million criminal penalty under a deferred prosecution agreement to resolve FCPA liability.  According to the agreement, PAC caused parent Panasonic to falsify its books and records with respect to improper payments that PAC made to third-party consultants and sales agents, in violation of the FCPA’s accounting provisions.  In addition to
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Former Venezuelan Official Pleads Guilty to Money Laundering Charge in Connection with Bribery Scheme

On April 19, 2018, Cesar David Rincon Godoy, a former general manager of the procurement subsidiary of Venezuelan state-owned energy company Petroleos de Venezuela S.A. (“PDVSA”), pleaded guilty to one count of conspiracy to commit money laundering.  The charge stemmed from an alleged scheme involving the payment of bribes by the owners of U.S.-based companies to Venezuelan government officials to secure contracts with PDVSA and payment priority on outstanding invoices.  According to admissions made in
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Former Siemens Executive Pleads Guilty to Involvement in $100 Million Bribery of Argentine Government Officials

On March 15, 2018, Eberhard Reichart, the former Technical Manager of Siemens Business Services’ Major Projects division, pleaded guilty to one count of conspiracy to bribe Argentine government officials.  According to court documents, Reichert was involved in a decades-long scheme to pay tens of millions of dollars in bribes to the Argentine officials in order to secure a contract to create national identity cards.  To effectuate payment of the bribes, Reichert and his co-conspirators created
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Transport Logistics International Inc. Agrees to Pay $2 Million Penalty to Resolve Foreign Bribery Case

On March 13, 2018, federal officials announced that they had resolved FCPA charges through a deferred-prosecution agreement (“DPA”) against a Maryland-based nuclear material transportation company.  According to court documents, Transport Logistics International, Inc. (“TLI”) conspired with others to pay more than $1.7 million in bribes to an official of Russian state-owned JSC Techsnabexport to secure improper business advantages and obtain or retain business.  TLI executives reportedly caused fake invoices to be prepared to create the
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Deputy Attorney General Rosenstein Delivers Remarks at the 32nd Annual ABA National Institute on White Collar Crime

On March 2, 2018, Deputy Attorney General Rod Rosenstein delivered the keynote address at the American Bar Association’s National Institute on White Collar Crime, highlighting recent convictions, resolutions, and areas of focus for the DOJ.  In his prepared remarks, Rosenstein noted that the current administration was not relaxing its enforcement efforts targeting white collar crime, but added that DOJ will seek to “avoid imposing penalties that disproportionately punish innocent employees, shareholders, customers, and other stakeholders.”
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Former President of Maryland-Based Transportation Company Indicted on 11 Counts Related to Foreign Bribery, Fraud, and Money Laundering Scheme

On January 12, 2018, federal officials announced an 11-count grand jury indictment that was filed against the former co-president of a Maryland-based transportation company specializing in the transportation of nuclear materials in connection with an alleged foreign bribery scheme.  According to the indictment, Maryland resident Mark Lambert conspired with others at the transportation company (“Transportation Company A”) between at least 2009 and October 2014 to bribe an official at JSC Techsnabexport (“TENEX”), a subsidiary of
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Keppel Offshore & Marine Ltd. and U.S.-Based Subsidiary Agree to Pay $422 Million in Global Penalties to Resolve Foreign Bribery Case

On December 22, 2017, Keppel Offshore & Marine Ltd. (“KOM”) and its wholly owned U.S. subsidiary, Keppel Offshore & Marine U.S.A. Inc. (“KOM USA”), agreed to pay a combined total penalty of more than $422 million to resolve charges with authorities in the United States, Brazil, and Singapore arising out of a scheme to pay bribes to Brazilian officials.  In addition, on the same day, KOM USA pled guilty in the Eastern District of New
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Former Embraer Sales Executive Pleads Guilty to Foreign Bribery and Fraud Charges

On December 21, 2017, a former sales executive of Brazilian aircraft manufacturer Embraer S.A. (“Embraer”) pled guilty to Foreign Corrupt Practices Act (“FCPA”), wire fraud, money laundering, and false-statements charges in connection with his role in an alleged bribery scheme involving Saudi Arabia’s state-controlled oil company.  According to the criminal information filed in U.S. District Court for the Southern District of New York and statements made during court proceedings, British national Colin Steven orchestrated payments
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Head of Organization Backed by Chinese Energy Conglomerate, and Former Foreign Minister of Senegal, Charged with Bribing High-Level African Officials

On November 20, 2017, federal officials announced the unsealing of a criminal complaint filed in the Southern District of New York against the head of a Hong Kong-based non-governmental organization (“NGO”) and the former Foreign Minister of Senegal in connection with an alleged multiyear foreign bribery scheme.  According to the complaint, Hong Kong resident Chi Ping Patrick Ho, head of an NGO funded by a Chinese conglomerate (the “Energy Company”), conspired with then–Senegalese Foreign Minister
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Two Executives Plead Guilty to Role in Foreign Bribery Scheme

On November 9, 2017, authorities announced two former executives of a Dutch oil and gas services company (the “Company”) pled guilty to conspiracy to violate the FCPA before the Honorable David Hittner of the Southern District of Texas.  According to documents filed with the court, former Company CEO Anthony “Tony” Mace and Robert Zubiate, a former sales and marketing executive at a Houston-based subsidiary of the Company, participated in a scheme to bribe officials of
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Acting Assistant Attorney General Kenneth A. Blanco Delivers Remarks at Foreign Corrupt Practices Act / Organisation for Economic Cooperation and Development Anniversary Conference at the NYU School of Law

On November 9, 2017, then–Acting Assistant Attorney General for the DOJ’s Criminal Division Kenneth A. Blanco delivered remarks at the NYU School of Law’s Foreign Corrupt Practices Act / Organisation for Economic Cooperation and Development (“FCPA/OECD”) Anniversary Conference in New York, held this year to mark the 40th anniversary of the FCPA and the 20th anniversary of the OECD’s Anti-Bribery Convention (the “Convention”).  Blanco, who has since left the DOJ and will now serve as
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