Posts Tagged With FCPA

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TechnipFMC Plc and U.S.-Based Subsidiary Resolve Foreign Bribery Case

On June 25, 2019, DOJ announced that TechnipFMC plc (“TFMC”), a publicly traded company in the United States and a global provider of oil and gas services, and its wholly owned U.S. subsidiary, Technip USA, Inc. (“Technip USA”), agreed to pay combined criminal penalties of more than $296 million to resolve foreign bribery charges with authorities in the United States and Brazil.  According to DOJ’s press release, between at least 2003 and 2013, Technip USA
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Walmart Inc. and Brazil-Based Subsidiary Agree to Pay $137 Million to Resolve Foreign Corrupt Practices Act Case

On June 20, 2019, officials announced that multinational retailer Walmart, Inc. (“Walmart”) and Brazilian subsidiary WMT Brasilia S.A.R.L. (“WMT Brasilia”) agreed to pay combined penalties of $137 million to resolve DOJ’s investigation into alleged FCPA violations in several countries.  The government’s allegations involved the companies’ anti-corruption controls in relation to due diligence on third-party intermediaries.  Parent company Walmart entered into a three-year non-prosecution agreement (“NPA”) with the government and agreed to a two-year independent corporate
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Fresenius Medical Care Agrees to Pay $231 Million in Criminal Penalties and Disgorgement to Resolve Foreign Corrupt Practices Act Charges

On March 29, 2019, DOJ officials announced a non-prosecution agreement (“NPA”) with Germany-based Fresenius Medical Care AG & Co. KGaA (“Fresenius”) to resolve a seven-year DOJ and SEC investigation into FCPA violations.  Fresenius admitted to paying bribes to public officials to obtain or retain business, failing to implement reasonable internal accounting controls, and failing to maintain accurate books and records in connection with its activities in several countries in Africa and the Middle East between
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Patrick Ho, Former Head of Organization Backed by Chinese Energy Conglomerate, Sentenced to Three Years in Prison for International Bribery and Money Laundering Offenses

On March 25, 2019, Patrick Ho was sentenced to three years in prison for his role in a scheme to bribe officials of Chad and Uganda.  Ho, the former head of a non governmental organization, admitted to paying the bribes to obtain business advantages for CEFC China Energy Company Limited (“CEFC China”), an international energy and banking conglomerate.  The schemes involved a $2 million bribe to the then-president of Chad to obtain oil rights, as
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Mozambique’s Former Finance Minister Indicted Alongside Other Former Mozambican Officials, Business Executives, and Investment Bankers in Alleged $2 Billion Fraud and Money Laundering Scheme that Victimized U.S. Investors

On March 7, 2019, a four-count indictment was unsealed charging three former senior Mozambican government officials, investment bankers, and business executives in connection with a $2 billion fraud and money laundering scheme.  According to the indictment, between 2013 and 2016 the defendants organized loans made to entities controlled by the Mozambican government.  The defendants allegedly defrauded U.S. investors by misrepresenting the purpose of the loans and the ability of Mozambique and its state-owned entities to
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Deputy Attorney General Rod Rosenstein and Assistant Attorney General Brian A. Benczkowski Deliver Remarks on Corporate Enforcement Policies

Outgoing Deputy Attorney General Rod Rosenstein and Assistant Attorney General Brian A. Benczkowski both delivered public remarks in early March that touched upon familiar themes in relation to FCPA enforcement and corporate prosecutions more generally.  These themes included the front-line role that companies play in detecting and preventing corruption through robust compliance programs; changes made to DOJ’s “anti-piling-on” and corporate compliance monitor policies; and recent efforts by DOJ to increase transparency in its enforcement policies. 
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Mobile TeleSystems PJSC and Its Uzbek Subsidiary Enter into Resolutions of $850 Million with the Department of Justice for Paying Bribes in Uzbekistan

On February 22, 2019, Mobile TeleSystems PJSC (“MTS”), the largest mobile telecommunications company in Russia and an issuer of publicly traded securities in the United States, and its wholly owned Uzbek subsidiary, Kolorit Dizayn Ink LLC (“Kolorit”), entered a deferred prosecution agreement and guilty plea, respectively, to resolve charges based on their roles in a scheme to pay bribes in Uzbekistan.  In total, the entities agreed to pay a penalty of $850 million.

The entities
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Former President and Former Chief Legal Officer of Publicly Traded Fortune 200 Technology Services Company Indicted in Connection with Alleged Multimillion Dollar Foreign Bribery Scheme

On February 14, 2019, a federal grand jury returned an indictment charging two former officers of Cognizant Technology Solutions Corporation (“Cognizant”), a publicly traded Fortune 200 technology services company, in connection with a foreign bribery scheme.  The indictment alleged that, in April 2014, the two officers—the company’s former president and chief legal officer—authorized a $2 million payment to government officials in India to obtain the permit necessary to open a new office campus.  The individuals,
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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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