Posts Tagged With FCPA

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Odebrecht and Braskem Plead Guilty to Resolve Largest Foreign Bribery Case in History

On December 21, 2016, Brazilian construction conglomerate Odebrecht S.A. and its affiliate Braskem S.A. pled guilty to conspiracy to violate the FCPA for a scheme to bribe government officials, primarily in Brazil.  In the largest foreign bribery case in history, Odebrecht and Braskem agreed to pay at least $3.5 billion to authorities in the United States, Brazil, and Switzerland.  Odebrecht paid over $700 million in bribes to government officials and political parties in twelve countries,
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Gabonese National Pleads Guilty to Foreign Bribery Scheme

On December 9, 2016, Samuel Mebiame, a Gabonese national and the son of the former Prime Minister of Gabon, pled guilty to conspiracy to make corrupt payments to government officials in violation of the FCPA.  Mebiame worked as a consultant to a mining company joint venture co-owned by Och-Ziff Capital Management Group LLC (“Och-Ziff”), a New York-based hedge fund.  Between 2007 and 2012, Mebiame conspired with others to pay bribes to government officials in Chad
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Deputy Attorney General Sally Yates Delivers Remarks at International Conference on Foreign Corrupt Practices Act

On November 30, 2016, Deputy Attorney General Sally Yates delivered remarks at the International Conference on the Foreign Corrupt Practices Act.  Yates stated that “we cannot forget that behind every bribe and illegal payment is one or more individuals who knew what they were doing was wrong and nonetheless broke the law,” and noted the need to “ensure that whoever is responsible is held accountable.”  Yates added that “the best way to deter individual conduct
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JPMorgan’s Hong Kong-based Subsidiary Agrees to Pay $72 Million Penalty in Connection with Hiring Scheme Involving Chinese Government Officials

On November 17, 2016, JPMorgan Chase & Co.’s Hong Kong-based subsidiary, JPMorgan Securities (Asia Pacific) Limited (“JPMorgan APAC”), entered into an NPA and agreed to pay a $72 million criminal penalty in connection with a scheme to gain advantages in winning investment deals by giving jobs to the friends and relatives of Chinese government officials.  According to admissions by JPMorgan APAC, Hong Kong-based investment bankers set up a client referral program known as the “Sons
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Assistant Attorney General Leslie R. Caldwell Delivers Remarks at The George Washington University Law School Regarding Foreign Corrupt Practices Act Enforcement

On November 3, 2016, Assistant Attorney General Leslie R. Caldwell spoke at The George Washington University Law School on the DOJ’s Foreign Corrupt Practices Act enforcement efforts.  Caldwell began by stating that, when she began her term as Assistant Attorney General, three areas of particular importance were “to sharpen the focus of our ongoing fight against international corruption,” “to increase transparency in charging decisions with respect to corporate prosecutions,” and “to encourage and foster meaningful
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Embraer Agrees to Pay More than $107 Million to Resolve Foreign Corrupt Practices Act Charges

On October 24, 2016, Brazilian aircraft manufacturer Embraer S.A. entered into a three-year deferred prosecution agreement (DPA) to resolve criminal charges relating to bribery of government officials in the Dominican Republic, Saudi Arabia and Mozambique and for falsely recorded payments in India.  As part of the DPA, the company admitted to paying bribes to government officials and falsifying books and records in connection with aircraft sales to foreign governments and state-owned entities.  The DPA requires
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Och-Ziff Capital Management Admits to Role in Africa Bribery Conspiracies and Agrees to Pay $213 Million Criminal Fine

On September 29, 2016, Och-Ziff Capital Management (“Och-Ziff”) and its wholly-owned subsidiary, OZ Africa Management GP LLC, agreed to pay a $213 million criminal penalty and enter into criminal resolutions with DOJ, and agreed to pay $199 million in disgorgement to the SEC, to resolve charges related to bribery of officials in Libya and the Democratic Republic of Congo.  Between 2008 and 2011, Och-Ziff employees worked with a businessman in the Democratic Republic of Congo
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Principal Deputy Assistant Attorney General David Bitkower Delivers Remarks at American Bar Association Southeastern White Collar Crime Institute

On September 8, 2016, Principal Deputy Assistant Attorney General David Bitkower addressed the American Bar Association Southeastern White Collar Crime Institute to speak about the role of the DOJ Criminal Division, and specifically highlight the Criminal Division’s new approaches with respect to health care fraud, sophisticated financial fraud and FCPA matters.  Starting with health care fraud, Bitkower discussed the Medicare Fraud Strike Force, which operates in nine regions identified as “hot spots” for health care
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LATAM Airlines Group Resolves FCPA Investigation and Agrees to Pay $12.75 Million Criminal Penalty

On July 25, Assistant Attorney General Leslie R. Caldwell announced that LATAM Airlines Group, a Chilean commercial airline company, had entered into a deferred prosecution agreement and agreed to pay a $12.75 million penalty to settle alleged FCPA violations arising from payments made by Argentine government officials.  In the three-year DPA, LATAM admitted that executives at LAN Airlines, LATAM’s predecessor-in-interest, had executed a fictitious $1.15 million consulting agreement with an advisor to the Secretary of
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Two Former Executives of Louis Berger International Sentenced in Foreign Bribery Scheme

On July 8, two former executives of Louis Berger International (LBI), a New Jersey-based construction management company, were sentenced in connection with a long-running scheme to secure construction management contracts by bribing government officials in India, Indonesia, Vietnam, and Kuwait.  Richard Hirsch – who previously served as the senior vice president responsible for the company’s operations in Indonesia, Thailand, the Philippines, and Vietnam – was sentenced to two years’ probation.  James McClung, who previously served
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Analogic Subsidiary Agrees to Pay More than $14 Million to Resolve Foreign Bribery Charges

On June 21, BK Medical ApS, a subsidiary of Massachusetts technology company Analogic Corporation, entered into a non-prosecution agreement with DOJ to pay more than $14 million, including a $3.4 million penalty to DOJ and more than $11 million in disgorgement and prejudgment interest to settle with the SEC.  The payments resolve the government’s investigation into BK Medical’s scheme with its Russian distributor to make improper payments to third parties using fictitious invoices and falsely
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DOJ Closes Smith & Wesson FCPA Investigation

On June 19, gun maker Smith & Wesson Holding Corp. announced that the DOJ had ended a foreign bribery investigation into the company and that it is close to settling a related inquiry by the SEC.  In an SEC filing, Smith & Wesson stated that the DOJ declined to pursue FCPA charges against the company, whose former vice president of sales was one of 22 individuals from the law enforcement and military equipment industries
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Justice Department Proposes Legislation to Advance Anti-Corruption Efforts

On May 5, DOJ announced several proposals it will submit to Congress to amend federal corruption laws focusing on international corrupt actions and federal program bribery.  The Department announced a number of proposals relating to transnational corruption, including proposals to expand the scope of money laundering statutes to permit prosecution of any act of foreign corruption that would be money laundering if committed domestically; permit administrative subpoenas in money laundering cases; increase the power to
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Former Owner and President of Pennsylvania Consulting Company Pleads Guilty to Bribing Official at European Bank for Reconstruction and Development

On April 20, Dmitrij Harder, the former owner of the Chestnut Group, a Pennsylvania consulting company, pled guilty to bribing an official at the European Bank for Reconstruction and Development (EBRD) in violation of the FCPA.  The EBRD is a multilateral development bank headquartered in London that is owned by more than 60 sovereign nations and provides financing for development projects in emerging economies, primarily in Eastern Europe.  Harder admitted that between 2007 and 2009,
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Court Turns Back Attempt to Change FCPA Conspiracy Ruling

On March 16, a court in the District of Connecticut denied the government’s request that it reconsider its ruling that narrowed the potential criminal FCPA liability for a former senior executive of Alstom, S.A.  The court’s earlier ruling held that the former executive and UK national, Lawrence Hoskins, could not be subject to criminal FCPA liability under certain theories.  Specifically, the court held that Hoskins could not be held liable pursuant to accomplice theories of
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Assistant Attorney General Leslie R. Caldwell Speaks at American Bar Association’s 30th Annual National Institute on White Collar Crime

On March 4, Assistant Attorney General Caldwell spoke at the ABA’s Institute on White Collar Crime in San Diego.  Caldwell’s speech focused on the Criminal Division’s efforts “to meet the challenges associated with international investigations in the corporate fraud arena.”  She first highlighted DOJ’s increasing cooperation with its foreign counterparts, pointing to the recent effort through which U.S. authorities and the Public Prosecution Service of the Netherlands reached a coordinated resolution with VimpelCom, the world’s
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Medical Equipment Company Will Pay $646 Million for Making Illegal Payments to Doctors and Hospitals in United States and Latin America

On March 1, Olympus Corporation of the Americas (“Olympus”) entered into a three-year deferred prosecution agreement (“DPA”) to resolve charges that it paid kickbacks to doctors and hospitals.  Olympus, which is the largest distributor of endoscopes and related equipment in the United States, admitted that it won new business and rewarded sales by giving doctors and hospital kickbacks that included consulting payments, foreign travel, lavish meals, and millions of dollars in grants and free endoscopes. 
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Two Men Arrested for Alleged FCPA Violations

On December 20, DOJ arrested Roberto Rincon, the president of Tradequip Services & Marine, and Abraham Jose Shiera Bastidas for alleged FCPA violations and money laundering.  DOJ said that the charges relate to an effort to secure energy contracts from Petroleos de Venezuela S.A. (PDVSA), Venezuela’s state-owned energy company.  No charging documents have been made publicly available.
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Former Executive Sentenced for Conspiracy to Bribe Panamanian Officials

On December 16, Vicente Eduardo Garcia, of Miami, a former regional director of the technology company SAP International, was sentenced to 22 months in prison for his role in a scheme to bribe Panamanian officials to secure the award of government technology contracts.  In his plea on August 12, 2015, Garcia admitted that in late 2009, to secure for SAP a multimillion-dollar contract to provide a Panamanian state agency with a technology upgrade package, Garcia
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Former Russian Nuclear Energy Official Sentenced to 48 Months in Prison for Money Laundering Conspiracy Involving FCPA Violations

On December 15, Vadim Mikerin, a former Russian official residing in Maryland, was sentenced to 48 months in prison for conspiracy to commit money laundering in connection with his role in arranging more than $2 million in corrupt payments to influence the awarding of contracts with a Russian state-owned nuclear energy corporation.  Mikerin was the director of the Pan American Department of JSC Techsnabexport (TENEX), a subsidiary of Russia’s State Atomic Energy Corporation and the
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Assistant Attorney General Leslie R. Caldwell Delivers Remarks at American Conference Institute’s 32nd Annual International Conference on FCPA

On November 17, Assistant Attorney General Leslie Caldwell gave a speech at a conference on the FCPA.  Caldwell observed that the FBI had added three new squads focused on the FCPA and kleptocracy issues, and that DOJ was preparing to increase the size of the Fraud Section’s FCPA unit by 50%.  She then said that she has been trying to increase transparency in charging decisions regarding corporate prosecutions.

Caldwell contrasted the charging decisions in
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Alstom Sentenced to Pay $772 Million Criminal Fine to Resolve Foreign Bribery Charges

On November 13, Alstom S.A., a French power and transportation company, was sentenced to pay a $772 million fine to resolve criminal charges related to a widespread corruption scheme involving at least $75 million in secret bribes paid to government officials in countries around the world, including Indonesia, Saudi Arabia, Egypt, the Bahamas, and Taiwan.  Alstom pled guilty in December 2014 to a two-count criminal information charging it with violating the FCPA by falsifying its
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New Compliance Counsel Expert Retained by the DOJ Fraud Section

On November 3, DOJ announced that it retained Hui Chen as a full-time compliance expert. Ms. Chen most recently worked as Global Head for Anti-Bribery and Corruption at Standard Chartered Bank, Assistant General Counsel at Pfizer, Inc., and Director of Legal Compliance for the Greater China Area at Microsoft Corporation. She also previously served as Trial Attorney at DOJ and as an Assistant U.S. Attorney in the Eastern District of New York. In her new
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Former UN General Assembly President and Five Others Charged in $1.3 Million Bribery Scheme

On October 6, John Ashe, the former president of the UN General Assembly, was charged along with five others in connection with a multiyear scheme to pay more than $1.3 million in bribes to Ashe in exchange for official actions in support of Chinese business interests.  According to the allegations in the complaint, since 2011, Ashe has been soliciting and accepting bribes from various businesspeople in China seeking to influence the actions of the UN
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