Foreign Corrupt Practices Act Enforcement Report 2009-2014

Foreign Corrupt Practices Act Enforcement Report
2009-2014
Faculty Editor:
Houman B. Shadab, Professor of Law
Co-Director, Center for Business and Financial Law
Managing Editor:
Ivo Pierotich
Fellow, Center for Business and Financial Law
Editors:
Yesenia Barrantes
Joseph Bruno
Dana Cimera
Isioma Chukwuani
Benjamin Eisenstein
Keila Espinosa
Laura Molina
Michael Taddei
Erin Porter
1
Note from the Editors
Welcome to Foreign Corrupt Practices Enforcement Report. The Report covers all enforcement actions from 2009 to 2014 and is
intended to show enforcement trends like the severity of penalties, targeted industries, and countries where violations occurred.
The Foreign Corrupt Practices Act (FCPA), 15 U.S.C. § 78dd-1 (1977), was enacted for the purpose of making it unlawful for U.S.
persons, natural persons and companies, to bribe foreign government officials as means to obtaining or retaining business. The Act
prohibits payments, promises to pay, or giving anything of value, directly or indirectly, to foreign officials in order to influence them.
FCPA also makes it illegal to induce a foreign official to omit or violate his or her duty. The Act applies to U.S. persons and foreign
issuers of securities in the U.S. The 1998 amendment makes FCPA applicable to foreign companies that cause, or further a corrupt
act, within the territory of the United States.
The Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) are both responsible for enforcing the FCPA.
SEC sanctions are limited to fines, while DOJ penalties include imprisonment.
2
Findings
Agencies
From 2009 to 2014 there were 100 FCPA enforcement cases. 2014 cases are still being published; our data is current as of
November 17, 2014. DOJ prosecuted 40 cases, SEC pursued 27, and on 33 cases, DOJ and SEC collaborated.
Chart 1: 2009-2014 Cases by Agency
Agency
Actions
DOJ
40
DOJ/SEC
33
SEC
Total
27
100
3
Countries Whose Companies Committed Violations
Companies that are accused most often of FCPA violations are usually headquartered in the United States (66%). Majority of other
violators are also from developed countries (“first world countries”).
Chart 2: 2009-2014 Cases by HQ Country
HQ Country
Cases
United States
66
Germany
6
Switzerland
5
France
4
Japan
4
British Virgin Islands
2
Italy
2
Panama
2
United Kingdom
2
Austria
1
Denmark
1
France
1
Hungary
Luxembourg
Netherlands
Thailand
Total
4
1
1
1
1
100
Countries Where FCPA Violations Occurred
FCPA violations were alleged to have been committed in 66 countries1, and two cases involved bribing officials of the United Nations
(whose officials are considered Government officials for the purposes of FCPA2). Below are the countries with most cases3.
Map 1: 2009-2014 Countries With Most Cases
1
2
3
Several cases are still pending, or charges were dropped.
See Richard T. Bistrong case on page 14.
Countries with 4 cases or more.
5
Industries
By far, the leading industry in FCPA violations is the Energy Industry. It consists of oil/gas, exploration and exploitation companies.
Chart 3: 2009-2014 Cases by Industry
Industry
Cases
Energy
25
Telecommunications
8
Manufacturing
7
Healthcare
6
Technology
5
Weapons
5
Construction
4
Chemicals
3
Engineering
3
Financial
3
Mining
3
Tobacco
3
Food
2
Maritime
2
Pharmaceuticals
2
Security
2
Insurance
2
Software
2
Agricultural
1
Aircraft
1
Airline
1
Alcohol
1
Aluminum
1
Apparel
1
Automobile
1
Film
1
Investment
1
Meat Products
1
Packaging
1
Utilities
1
Water Purification
1
Grand Total
100
6
Financial Penalties and Sentences
Fines for FCPA violations totaled $5,129,921,219, which included civil fines, criminal penalties, disgorgement, and pre-judgment
interest. The largest financial penalty totaled $579 Million, in the case of Kellogg Brown & Root LLC (KBR)4. The average of all
financial penalties is $65,768,221.
The maximum prison sentence available for FCPA violation is 60 months. The average prison sentence given between 2009 and
2014 was 29 months.
4
See page 9.
7
FCPA REPORT COLUMN KEY
Case Filed Date: Date when SEC/DOJ charges are made public.
Agency: Enforcement Agency: DOJ, SEC, or both.
Company: Company against whom enforcement action was taken.
Company HQ Country: Where is the company incorporated.
Violation: Description of the FCPA violation.
Government Documents: All the DOJ and/or SEC documents regarding the case.
Fines: Financial penalties.
Prison Sentence: Name and title of the person in addition to their prison sentence in months.
Country: Country where FCPA violation was committed.
Industry: Industry that company belongs to.
8
FCPA Enforcement Actions: 2009-2014
Case Filed
Date
01/07/2009
01/28/2009
Agency
DOJ
DOJ
02/06/2009 DOJ/SEC
Company
HQ
Country
Violation
Unnamed
California
company
United
States
Conspiracy to pay $46
million in bribes to foreign
officials to obtain and retain
business.
Tourism
Authority of
Thailand (TAT)
Thailand
Senior government officer
received about $1.8 million in
bribes from US company in
exchange for TAT contracts.
United
States
Over $132 million in bribes to
Nigerian government officials
to obtain and retain billions
of dollars in construction
contracts.
Company
Kellogg Brown
& Root LLC
(KBR)
Government
Documents
DOJ
Documents
DOJ
Documents
DOJ
Documents
Fines
Prison Sentence
Country
Industry
Dir. Richard Morlock:
$5,000
CEO Stuart Carson:
$20,000
CEO Stuart Carson:
10 months
China,
Korea,
Romania,
Saudi Arabia
Energy
None
None
Thailand
Film
$579,000,000
KBR Agent Jeffrey
Tessler: 21 months
Nigeria
Construction
$250,000 fine,
$1,041,112
disgorgement.
None
China
Energy
DOJ
Documents
DOJ
Documents
SEC
Documents
02/11/2009
SEC
ITT Corporation
United
States
ITT’s Chinese subsidiary
paid bribes to Chinese
government officials to
obtain business.
SEC
Documents
9
03/23/2009
04/22/2009
DOJ
Latin Node, Inc.
DOJ
Unnamed
Florida
corporation
05/11/2009 DOJ/SEC
05/29/2009
06/09/2009
07/22/2009
SEC
DOJ
DOJ
Novo Nordisk
A/S
United
States
Paid over $2 million dollars
in bribe to foreign officials in
exchange for favorable
interconnection agreements.
United
States
Bribed Haitian officials in
exchange for business and
preferred contracts.
Denmark
Paid $1.4 million in
kickbacks to the Iraqi
government in exchange for
being awarded business
contracts.
ACL
Technologies,
Inc (ACL);
United
Industrial
Corporation
(UIC)
United
States
UIC authorized ACL to bribe
Egyptian military officials to
secure contracts related to a
military aircraft depot.
ABB, Ltd.
Switzerland
Conspiracy to pay bribes to
Mexican officials in
exchange for lucrative
electrical utility contracts.
United
States
Illegal money transfers and
cash payments. Company
paid for travel and
entertainment to government
customers and paid the
tuition for the children of
government officials.
Control
Components
Inc.
Honduras
Yemen
Guatemala
Technology
Haiti
Technology
Deferred
prosecution
agreement and
criminal prosecution
dismissed.
Iraq
Oil
President Thomas
Wurzel: $35,000 fine,
$337,679.42
disgorgement
UIC: $267,571
disgorgement.
None
Egypt
Military
Technology
DOJ
Documents
None
Principal Fernando
Basurdo: 22 months
Mexico
Energy
DOJ
Documents
Criminal fine of
$18,200,000 and a
special assessment of
$1,200.
DOJ
Documents
DOJ
Documents
DOJ
Documents
DOJ
Documents
$2,000,000
Controller Antonio
Perez: $36,375
forfeiture
Intermediary Juan Diaz:
$73,824.20 restitution
$9,000,000
SEC
Documents
SEC
Documents
SEC
Documents
10
None
Controller Antonio
Perez: 10 months
Intermediary Juan
Diaz: 20 months
None
China, Malaysia,
South Korea,
United Arab
Emirates
Energy
07/28/2009
SEC
07/30/2009 DOJ/SEC
07/31/2009
08/22/2009
SEC
SEC
Avery Dennison
Corporation
Helmerich &
Payne Inc.
United
States
Improper payments and
promise of improper
payments to foreign
officials. Illegal petty cash
payment to customers or
other officials in foreign
countries. Failure to record
payments and gifts in
company’s books and
records. Failure to
implement an internal
accounting control system.
United
States
Improper payment to foreign
government officials. Said
payments were not reflected
in the company’s books,
records, and accounts.
Nature’s
Sunshine
United
States
Oscar Meza
United
States
Payments made to Brazil
custom agents in order to
import
unregistered products into
Brazil.
Corrupt payments made to
foreign officials.
Authorized improper bribery
payments to Chinese state
owned companies in order to
obtain contracts.
SEC
Documents
DOJ
Documents
SEC
Documents
SEC
Documents
SEC
Documents
11
$200,000 Fine,
disgorgement
of $273,213 and
$45,257 in prejudgment
interest.
$1,000,000 fine
Disgorgement of
$320,604 and
prejudgment interest of
$55,077.
None
China,
Indonesia,
Pakistan
Manufacturing
None
Argentina,
Venezuela
Energy
None
Brazil
Manufacturing
None
China
Software
Company: $600,000
Fine
Executives: $50,000
Fine
$30,000 fine,
pre-judgment interest
of $26,707.
09/30/2009
11/10/2009
11/16/2009
12/4/2009
SEC
DOJ
DOJ
DOJ
AGCO CORP
Ports
Engineering
Consultants
Corporation
Overman
de Panama
Sugar Land
J.D. Locator
Telecom
Consulting
Services Corp
United
States
Kickback payments made to
Iraq government. DOJ
charges were Conspiracy
and wire fraud.
Panama
Conspiracy to pay bribes to
former Panamanian
government officials to
secure maritime contracts.
United
States
Conspiracy to bribe Mexican
government officials to
secure contracts with the a
Mexican state-owned utility
company.
United
States
United
States
Defendants participated in a
scheme to commit foreign
bribery and money
laundering. They paid more
than $800,000 to shell
companies to be used for
bribes to foreign officials of
the Republic of Haiti’s stateowned national
telecommunications
company.
SEC
Documents
Disgorge $13,907,393
in profits, $2,000,000 in
pre-judgment interest,
$4,000,000 fine.
None
Iraq
Agricultural
DOJ
Documents
$15,000 fine.
President Charles
Jumet: 60 months
Panama
Maritime
DOJ
Documents
None
(Indictment Dismissed)
None
(Indictment
Dismissed)
Mexico
Utilities
$1,580,771 forfeiture.
$6,600,000 restitution.
President Juan
Diaz: 57
President Joel
Esquenazi: 60
EVP Carlos
Rodriguez: 60
Haiti
Telecommunic
ations
DOJ
Documents
DOJ
Documents
12
12/11/2009
12/11/2009
12/15/2009
12/31/2009
SEC
Pride
International,
Inc.
DOJ
Ponte Vedra
Beach
DOJ
Ports
Engineering
Consultants
Corporation
DOJ
SEC
UTStarcom Inc.
United
States
VP Bobby Benton authorized
the bribery of a Mexican
customs official in return for
favorable treatment
regarding customs
deficiencies identified during
an inspection of a supply
boat. It is also alleged that a
manager of a Pride
subsidiary in Venezuela
authorized the bribery of an
official of Venezuela's stateowned oil company in order
to secure extensions of three
drilling contracts.
SEC
Documents
Pending
None
Venezuela,
Mexico
Energy
United
States
The indictments alleged that
the defendants engaged in a
scheme to pay bribes to the
minister of defense
Gabon. In fact, the scheme
was part of the undercover
FBI operation, with no actual
involvement from any
minister of defense.
DOJ
Documents
None
(Indictments
Dismissed)
None
(Indictments
Dismissed)
Gabon
Weapons
Panama
Conspiracy to pay bribes to
former Panamanian
government officials to
secure maritime contracts.
DOJ
Documents
$331,000
President John
Webster Warwick:
37 months
Panama
Maritime
United
States
UTStarcom's subsidiary in
China paid nearly $7 million
for hundreds of overseas
trips by employees of
Chinese Gov-controlled
telecommunications
companies that were
customers of UTStarcom,
purportedly to provide
customer training. In reality,
the trips were entirely or
primarily for sightseeing.
$3,000,000
None
China
Telecommunic
ations
DOJ
Documents
SEC
Documents
13
01/11/2010
01/21/2010
02/02/2010
02/04/2010
SEC
DOJ
DOJ
DOJ
03/17/2010 DOJ/SEC
NATCO Group
Inc.
Undisclosed
Fourcand
Enterprises,
Inc.
Bae Systems
plc
Innospec Inc.
United
States
Created and accepted false
documents while paying
extorted immigration fines
and obtaining immigration
visas in the Republic of
Kazakhstan.
United
States
Conspiracy to defraud the
US by violating the FCPA by
making corrupt payments to
foreign official and falsifying
books and records, and
violating the IEEPA by
exporting controlled goods
without authorization.
United
States
SEC
Documents
$65,000 Fine
None
Kazakhstan
Oil
DOJ
Documents
None
VP Richard T.
Bistrong: 18 months
United Nations,
Netherlands,
Nigeria
Security
Knowingly engaged in
monetary transactions in the
amount of $18,500 derived
from bribery.
DOJ
Documents
None
President Jean
Fourcand: 2 months
Haiti
Telecommunic
ations
United
Kingdom
Conspiracy to defraud the
US by making false
statements about its FCPA
compliance program and
violating the AECA and
ITAR.
DOJ
Documents
$400,000,000 Fine
36 months
probation
United States
Defense
United
States
Bribed foreign government
officials in Iraq and Indonesia
to obtain and retain
business. Sold chemicals to
Cuban power plants, in
violation of the U.S. embargo
against Cuba.
$14,100,000 Fine,
$4,800 Assessment to
DOJ
60 months
probation
Iraq, Indonesia,
Cuba
Chemicals
SEC
Documents
DOJ
Documents
SEC
Documents
14
DaimlerChrysler
AG
and
subsidiaries,
including:
DaimlerChrysler
03/22/2010
DOJ/SEC
Automotive
Russia SAO;
Daimler Export
and Trade
Finance GmbH;
DaimlerChrysler
China Ltd.
04/28/2010
SEC
06/28/2010 SEC/DOJ
06/29/2010
SEC
Dimon, Inc.,
now Alliance
One
Technip SA
Veraz Networks
DOJ
Documents
Germany
Practice of paying bribes to
foreign government officials
to secure business in Asia,
Africa, Eastern Europe and
the Middle East to assist in
securing contracts with
government customers for
the purchase of Daimler
vehicles.
DOJ
Documents
DOJ
Documents
DOJ
Documents
$93,600,000 Fines.
$2,400 in Assessments
to DOJ.
None
$91,400,000
disgorgement to SEC.
SEC
Documents
United
States
Dimon's subsidiary paid over
$3 million in bribes to
Kyrgyzstan government
officials to purchase tobacco
for resale to Dimon's largest
customers. Dimon paid
bribes of $542,590 to
government officials of the
Thailand Tobacco monopoly
to obtain $9.4 million in sales
contracts.
France
Bribed Nigerian government
officials over a 10-year
period to win construction
contracts in Nigeria worth
more than $6 billion.
United
States
Violated the books and
records and internal controls
provisions of the FCPA by
making improper payments
and gifts to foreign officials in
China and Vietnam after the
company went public in
2007.
SEC
Documents
Executives fined
$160,000 in penalties.
SEC
Documents
$98,000,000 Fine to
SEC.
DOJ
Documents
$240,000,000
disgorgement to DOJ.
SEC
Documents
$300,000 fine.
15
China, Croatia,
Egypt, Greece,
Hungary,
Indonesia, Iraq,
Ivory Coast,
Latvia, Nigeria,
Russia, Serbia
and Montenegro,
Thailand, Turkey,
Turkmenistan,
Uzbekistan,
Vietnam
Automobile
None
Kyrgyzstan
Tobacco
None
Nigeria
Construction
None
China, Vietnam
Telecommunic
ations
07/07/2010
07/27/2010
08/03/2010
DOJ
SEC
SEC
DOJ
Snamprogetti
Netherlands
B.V.
General
Electric, Ionics
Inc., and
Amersham PLC
Undisclosed
Bribing officials of
government owned Nigerian
Italy &
National Petroleum
Netherlands Corporation, and employees
of government controlled
Nigeria LNG Limited.
DOJ
Documents
SEC
Documents
Penalties of
$240,000,000 to DOJ
and $125,000,000 to
SEC.
None
Nigeria
Construction
Disgorgement of
$18,397,949, prejudgment interest of
$4,080,665, and a civil
penalty of $1,000,000.
None
Iraq
Water
Purification
$5,000 fine.
Mgr. Bobby J Elkin,
Jr.: 3 years
probation
Kyrgyzstan
Tobacco
None
Iraq,
Indonesia
Chemical
None
Venezuela
Oil
United
States
Illicit payments in the form of
kickbacks paid to the Iraq
Government Ministry. Co.
knowingly violated laws set
by the Oil For Food Program
and US International trade
on Iraq.
United
States
Paid millions government
officials in Kyrgyzstan to
obtain export licenses, gain
access to processing
facilities, avoid tax penalties,
and win contracts to
purchase tobacco from local
growers.
SEC
Documents
Dir. David Turner:
disgorge $40,000.
Naaman: disgorge
$810,076 plus
prejudgment interest of
$67,030, and a penalty
of $438,038.
SEC
Documents
Penalty of $25,000.
08/05/2010
SEC
Innospec, Inc.
United
States
Bribery of Iraqi government
officials to land contracts
under the U.N. Oil For Food
Program.
08/05/2010
SEC
Pride
International
United
States
Authorized bribes to
government officials to
extend drilling contracts
amongst other things.
SEC
Documents
DOJ
Documents
16
08/06/2010
09/15/2010
DOJ/
SEC
Universal Leaf
Tobacos Ltda/
In Re Universal
Corporation./
Alliance One
International
AG/ In Re
Alliance One
International
Inc./
Alliance One
Tobacco Osh,
LLC
United
States
Kickbacks to foreign officials.
Conspiracy with competitors.
Falsify books and records in
connection with corrupt bribe
payments made to
government officials.
DOJ
Lindsey
Manufacturing
Company
United
States
Conspired to pay bribes to
Mexican government
officials.
United
States
Subsidiaries paid bribes to
Mexican officials to obtain
business with governmentowned power companies,
and to pay kickbacks to Iraq
to obtain contracts under the
U.N. Oil for Food Program.
09/29/2010 DOJ/SEC
ABB Inc. - ABB
Ltd.
DOJ
Documents
SEC
Documents
DOJ
Documents
DOJ
Documents
SEC
Documents
17
Universal Leaf DOJ fine
$4,400,000;
Alliance One
International AG fine
$5,250,000; Alliance
One Tobacco Osh, LLC
$4,200,000
None
Brazil, Thailand,
Krgyzstan
Tobacco
None
DOJ voluntarily
dismissed the case.
Mexico
Manufacturing
Criminal penalties:
$32,420,000
None
Mexico
Iraq
Power
Technology
SEC
Documents
DOJ
Documents
11/4/2010
Panalpina
World Transport
(Holding) Ltd.,
Engaged in a scheme to pay
bribes to numerous foreign
Royal Dutch
Switzerland, officials on behalf of many of
Shell,
Netherland, its customers in the oil and
Transocean
gas industry. They did so in
SEC/DOJ
United
Ltd.,
order to circumvent local
States
Tidewater Inc.,
rules and regulations relating
Pride
to the import of goods and
materials into numerous
International
foreign jurisdictions.
Inc.,
Noble
Corporation
DOJ
Documents
DOJ
Documents
DOJ
Documents
$236,500,000 Fine
None
Angola,
Azerbaijan,
Brazil,
Kazakhstan,
Nigeria, Russia,
Turkmenistan
$2,950,000 Penalty
None
China
DOJ
Documents
Energy/Freight
Energy
DOJ
Documents
DOJ
Documents
DOJ
Documents
12/10/2010 SEC/DOJ
RAE Systems
Inc.
United
States
Making improper payments
through two of its Chinese
joint venture entities to
Chinese officials in order to
obtain significant
government contracts for
their gas and chemical
detection products.
SEC
Documents
DOJ
Documents
18
12/10/2010
DOJ
Latin Node Inc.
12/27/2010 SEC/DOJ Alcatel-Lucent
01/24/2011
SEC
01/31/2011 SEC/DOJ
Innospec Inc
Maxwell
Technologies
Inc.
United
States
France
LatiNode executives agreed
to a secret deal to pay bribes
to the manager, as well as to
a senior attorney for
Hondutel who acted as the
manager’s “straw man,” and
to a minister of the Honduran
government who became a
representative on the
Hondutel Board of Directors.
Bribes were paid in
exchange for keeping the
interconnection agreement in
place and receiving reduced
rates and other economic
benefits from Hondutel.
Alcatel and its subsidiaries
failed to detect or investigate
numerous red flags
suggesting their employees
were directing sham
consultants to provide gifts
and payments to foreign
government officials to
illegally win business.
United
States
Paid bribes to government
officials in Iraq and Indonesia
in order to sell it’s product.
United
States
Paid bribes to Chinese
officials through a third party
agent in order to gain
business from Chinese stateowned entities.
DOJ
Documents
DOJ
Documents
None
DOJ
Documents
CEO Jorge
Granados: 46
Months
VP Manuel
Caceres: 23 Months
CFO Manuel
Salvoch: 10 Months
CCO Juan Pablo
Vasquez: 3 years
probation
Honduras
Telecommunic
ations
SEC
Documents
DOJ
Documents
Costa Rica,
Telecommunic
Honduras,
ations
Malaysia, Taiwan
$137,000,000
None
CEO Paul Jennings:
$116,092
disgorgement, interest
of $12,945 and a
penalty of $100,000.
None
Iraq,
Indonesia
Specialty
Chemicals
$6,300,000 to settle
SEC charges.
$8,000,000 criminal
penalty with DOJ.
None
China
Energy
DOJ
Documents
SEC
Documents
SEC
Documents
DOJ
Documents
19
02/10/2011 SEC/DOJ
SEC
Documents
$1,200,000 in
disgorgement and
prejudgment interest to
the SEC.
$4,000,000 criminal
penalty to DOJ.
None
Mexico
Meat Products
Tyson Foods
Inc.
United
States
Made improper payments to
government employed
inspection veterinarians.
United
States
Bribed government officials
in China and South Korea in
order to secure the sale of
IBM products.
SEC
Documents
$10,000,000
None
China
South Korea
Technology
DOJ
Documents
03/18/2011
SEC
International
Business
Machines Corp.
03/24/2011
SEC
Ball
Corporation
United
States
Made improper payments to
employees of Argentina’s
government.
SEC
Documents
$300,000
None
Argentina
Packaging and
Containers
04/06/2011
DOJ
JGC
Corporation
Japan
Bribed government officials
in Nigeria to obtain contracts.
DOJ
Documents
$218,800,000
None
Nigeria
Construction
United
States
Improper payments were
made to individuals of OTE,
a telecommunications
provider in Greece, in order
to obtain contracts.
SEC
Documents
$1,600,000
disgorgement to the
SEC.
$1,200,000 fine to DOJ.
None
Greece
Technology
04/07/2011 SEC/DOJ
Comverse
Technology
DOJ
Documents
20
04/08/2011 SEC/DOJ
05/03/2011
SEC
05/17/2011 SEC/DOJ
07/13/2011 SEC/DOJ
07/27/2011
SEC
Johnson &
Johnson
Rockwell
Automation
Tenaris S.A.
Armor Holdings
Inc
Diageo
United
States
Improper payments were
made to public doctors and
hospitals in Greece, Poland,
and Romania in exchange
for prescribing J&J products
and awarding the company
contracts. Kickbacks were
made to Iraq to obtain
contracts for the United
Nations Oil for Food
Program.
United
States
Made illicit payments and
provided leisure travel for
Chinese state owned
companies to influence
contract awards.
Bribed Uzbekistan
government officials in order
Luxembourg
to obtain contracts for
supplying pipelines for oil
and natural gas.
United
States
Bribed UN officials to obtain
contracts to supply body
armor for use in the United
Nations.
United
Kingdom
Paid more than $2 million in
bribes to government
officials to obtain lucrative
sales and tax benefits.
SEC
Documents
DOJ
Documents
SEC
Documents
SEC
Documents
DOJ
Documents
SEC
Documents
DOJ
Documents
SEC
Documents
DOJ
Documents
21
$48,600,000 in
disgorgement and
prejudgment interest to
the SEC.
$21,400,000 million fine
to DOJ.
None
Greece,
Poland,
Romania,
Iraq
Healthcare
$2,800,000 in
disgorgement,
prejudgment interest,
and civil penalty.
None
China
Diversified
Machinery
$5,400,000 in
disgorgement and
prejudgment interest in
a Deferred Prosecution
Agreement with the
SEC.
$3,900,000 criminal
penalty to DOJ.
None
Uzbekistan
Manufacturing
$10,200,000 to the
DOJ, &
$5,700,000 in
disgorgement,
prejudgment, and
penalties to SEC.
None
United Nations
Weapons
$11,306,081
disgorgement,
$2,067,739
prejudgment, and
$3,000,000 financial
penalty.
None
India,
Thailand,
South Korea
Alcohol
09/15/2011
10/13/2011
12/12/2011
DOJ
SEC
DOJ
12/20/2011 DOJ/SEC
12/29/2011 DOJ/SEC
Bridgestone
Corporation
Watts Water
Technologies
Siemans AG
Aon
Corporation
Maygar
Telekom, &
Deutsche
Telekom
Japan
Conspired to rig bids, fix
prices, and allocate market
shares in the US, and
conspired to make payments
to government officials in
various Latin American
countries to obtain and retain
business.
DOJ
Documents
$28 million fine
None
Latin America
Marine hose
and other
industrial
products
United
States
Made improper payments to
employees of design entities
to be recommended for
projects of state owned
entities in China.
SEC
Documents
$3,776,606
None
China
Manufacturing
Germany
Engaged in a decade long
scheme to bribe senior
Argentine officials to secure,
implement, and enforce a $1
billion contract with the
Argentine government to
produce national identity
cards.
DOJ
Documents
$449,000,000
None
Argentina
Engineering
United
States
Improper payments made to
employees of foreign
government owned clients
and third parties.
$16,260,000
None
Costa Rica,
Egypt, Vietnam,
Indonesia, United
Arab Emirates
Insurance
Hungary,
Germany
Subsidiaries in Macedonia
bribed Macedonian officials
to prevent competition and
gain other regulatory benefits
Parent Company (Deutsche
Telekom) charged with
books and records and
internal control violations of
the FCPA.
$95,160,000
None
Macedonia
Montenegro
Telecommunic
ations
DOJ
Documents
SEC
Documents
DOJ
Documents
SEC
Documents
22
01/17/2012
DOJ
02/06/2012 DOJ/SEC
02/24/2012
03/14/2012
SEC
DOJ
03/26/2012 DOJ/SEC
Marubeni
Corporation
Smith &
Nephew
Noble
Corporation
executives
Lufthansa
Technik AG
Biomet, Inc.
Japan
Marubeni Corporation and
many other U.S. companies
offered to pay and paid
bribes to high-level Nigerian
government officials to
secure engineering,
procurement and
construction contracts.
United
States
Bribed Greek physicians
employed by governmental
institutions to secure medical
device sales contracts with
distributors at the full list
price as opposed to the
regular discounted price
from which the company
would pay its bribe to the
physicians.
United
States
Bribing custom officials in
Nigeria to obtain illicit
permits for oil rigs in order to
retain business under
lucrative drilling contracts.
Germany
Paid bribes to officials
employed by Latin American
governments to secure
contracts to perform aircraft
maintenance and repair for
government agencies.
United
States
Biomet’s subsidiaries and
agents bribed publically
employed physicians in
Argentina, Brazil and China
for nearly a decade to win
medical device distribution
business bids.
DOJ
Documents
$54,600,000
None
Nigeria
Engineering
$22,000,000
None
Greece
Healthcare
SEC
Documents
$8,000,000
None
Nigeria
Energy
DOJ
Documents
$11,800,000
None
Mexico
Panama
Aircraft
22,000,000
None
Argentina
Brazil
China
Healthcare
SEC
Documents
DOJ
Documents
DOJ
Documents
SEC
Documents
23
03/26/2012 DOJ/SEC Morgan Stanley
6/18/2012
7/10/2012
DOJ
Data Systems
& Solutions
LLC
DOJ/SEC
Orthofix
International,
N.V.
United
States
Peterson tried to circumvent
Morgan Stanley’s system of
internal control bribing a
Chinese official to
secure the purchase of a
government owned real
estate interest by Morgan
Stanley. Then, Morgan
Stanley would sell the
interest in the property to
Peterson’s and the Chinese
official's shell company at a
discounted price.
United
States
DS&S paid bribes to officials
employed by the Ignalina
Nuclear Power Plant, a
state-owned nuclear power
plant in Lithuania, to secure
contracts to perform services
for the plant. Bribes were
funneled through
subcontractors, who in turn,
made repeated payments to
high-level officials at Ignalina
via check or wire transfer.
Italy
Subsidiary paid routine
bribes refereed to as
"chocolates " to Mexican
officials in order to obtain
lucrative sales contracts with
government hospitals.
DOJ
Documents
$250,000
Dir. Garth Peterson:
9 months
China
Investment
$8,820,000
None
Lithuania
Energy
$5,200,000 Million to
settle the SEC Charges
and $2,200,000 penalty
to DOJ.
None
Mexico
Medical
SEC
Documents
DOJ
Documents
DOJ
Documents
SEC
Documents
24
7/17/2012
8/7/2012
8/16/2012
DOJ
DOJ/SEC
SEC
The Nordman
Group
Pfizer H.C.P.
Corporation
Oracle
Corporation
United
States
NORDAM subsidiaries and
affilaites paid bribes to
employees of airleines
created, controlled, and
exclusively owned by the
People's Republic of China
in order to secure contracts
to perform MRO services for
those airlines. Bribes paid
both directly and indirectly to
airline employees. To
disguise the bribes,
employees of NORDAM's
affiliate entered into sales
representation agreements
with fictitious entities and
then used the money paid by
NORDAM to those entities to
pay bribes to the airline
employees.
United
States
Bribed doctors and other
healthcare professionals
employed by foreign
governments in order to win
business in Bulgaria, China,
Croatia, Czech Republic,
Italy, Kazakhstan, Russia,
and Serbia.
United
States
Failed to prevent subsidiary
from secretly setting aside
money off the company's
books that was eventually
used to make payments to
phony vendors in India.
DOJ
Documents
$2,000,000
None
DOJ
Documents
$60,000,000
None
$2,000,000
None
SEC
Documents
SEC
Documents
25
Singapore
Airline Industry
Bulgaria, China,
Croatia, Czech
Republic, Italy, Pharmaceutical
Kazakhstan,
s
Russia, and
Serbia.
India
Software
9/24/2012
10/4/2012
12/17/2012
12/20/2012
DOJ/SEC
DOJ
SEC
SEC
Subsidiaries arranged illicit
payments to foreign officials
in more than a dozen
countries. Falsifying books
and records in connection
with payments by its
subsidiaries to government
officials in various countries
in order to obtain and retain
business.
Tyco
International
and Tyco
Valves and
Controls ME
Switzerland
Mizanur
Rahman
Germany
Telecommunications
Consultant charged with
falsifying tax returns with the
IRS in 2005 and 2006.
Allianz SE
Eli Lily and
Company
DOJ
Documents
SEC
Documents
China, Turkey,
Germany, Saudi
Arabia
Security
Systems
$39,680,000
None
DOJ
Documents
None
Pending
Germany
Violating the books and
records and internal control
provisions of the FCPA for
improper payments to
government officials in
Indonesia during a sevenyear period.
SEC
Documents
$5,315,649,
prejudgment interest of
$1,765,125, and a
penalty of $5,315,649
for a total of
$12,396,423.
None
Indonesia
Insurance and
Asset
Management
USA
Improper payments by
subsidiaries made to foreign
government officials to win
millions of dollars of
business in Russia, Brazil,
China, and Poland.
SEC
Documents
None
Russia, Brazil,
China, Poland
Pharmaceutical
s
DOJ
Documents
26
$29,398,734
Bangladesh,
Telecommunic
India, Hong Kong
ations
3/12/2013
4/5/2013
4/15/2013
DOJ
SEC
DOJ
Broker-Dealer
Group known
as “Global
Markets Group”
United
States
3 employees of a U.S.
broker-dealer bribed a senior
official in Venezuela’s state
economic development bank
in exchange for financial
trading business being
directed to the BrokerDealer.
DOJ
Documents
DOJ
Documents
DOJ
Documents
Pending
Pending
Venezuela
Finance &
Banking
DOJ
Documents
Koninklijke
Philips
Electronics
Employees of a Philips
manufacturing subsidiary,
located in Poland, made
improper payments to public
officials of Polish healthcare
Netherlands
facilities to increase the
likelihood that public tenders
for the sale of medical
equipment would be
awarded to Philips.
SEC
Documents
$4,500,000
None
Poland
Healthcare
Undisclosed
(mining
company)
Defendant attempted to bribe
a witness and to cover up an
FCPA violation, in which the
mining company for which he
worked paid bribes to
officials of a former
governmental regime in the
Republic of Guinea to obtain
and retain valuable mining
concessions in the Republic
of Guinea.
DOJ
Documents
$95,000
Sentencing
information not
available
Republic of
Guinea
Mining
France
27
4/16/2013
4/22/2013
4/30/2013
5/29/2013
DOJ/SEC
DOJ/SEC
DOJ
DOJ/SEC
Parker Drilling
Company
Ralph Lauren
Corporation
Alstom SA
Total S.A.
United
States
Parker Drilling, through two
of its executives, authorized
a third-party to “entertain” the
Nigerian officials involved in
resolving the company’s
customs disputes, which
related to the importation of
their drilling rigs.
United
States
Argentinean subsidiary
branch of Ralph Lauren paid
bribes to government
officials in Argentina in order
to avoid inspections,
customs, and necessary
paperwork.
United
States &
Japan
Three Alstom corporate
executives, and a major
Japanese corporation, paid
bribes to Indonesian officials
in order to secure a $118
million power contract.
France
Oil and Gas company bribed
intermediaries of the Iranian
government who then helped
the company obtain valuable
contracts to develop oil and
gas fields.
DOJ
Documents
$14,800,000
None, deferred
prosecution
agreement
Nigeria
Energy
$1,500,000
None, nonprosecution
agreement
Argentina
Apparel
$88,000,000
None
Indonesia
Energy
$398,000,000
Deferred
prosecution
agreement
Iran
Energy
SEC
Documents
SEC
Documents
DOJ
Documents
DOJ
Documents
DOJ
Documents
SEC
Documents
28
DOJ
Documents
6/20/2013
DOJ
Group DF
Limited and its
related
subsidiaries
Austria
Six individuals were indicted
by the DOJ for bribing Indian
government officials with the
intent of securing the rights
to mine titanium minerals in
India
DOJ
Documents
DOJ
Documents
Pending
Pending
India
Mining
DOJ
Documents
DOJ
Documents
7/30/2013
10/15/2013
DOJ
DOJ
10/22/2013 SEC/DOJ
Undisclosed
France
Lawrence Hoskins was
charged with conspiring to
violate the FCPA and to
launder money, as well as
substantive FCPA and
money laundering
violations. William
Pomponi was charged with
Hoskins in the second
superseding indictment.
Maxwell
Technologies,
Inc
United
States
Company conspired to give
gifts and bribes to foreign
officials. Falsifying
accounting records.
DOJ
Document
Pending
Pending
China, and
Switzerland
Energy
USA
Bribing officials at
government-owned banks
with pleasure trips to popular
tourist destinations in order
to illicitly win business. In
addition to gifts and cash
payments.
SEC
Document
$48,000,000
None
China, Indonesia,
Russia
Banking
Dieblod, Inc.
DOJ
Documents
None
None
Indonesia
Energy
29
10/24/2013
SEC
11/26/2013 SEC/DOJ
11/26/2013
12/9/2013
DOJ
DOJ
Stryker
Corporation
Weatherford
International
Weatherford
Services
Bilfinger SE
USA
Bribing doctors and other
government officials in five
countries to obtain or retain
business and make $7.5
million in illicit profits.
Authorizing bribes and
improper travel and
entertainment for foreign
officials in the Middle East
and Africa to win business.
Switzerland
Disguising transactions with
sanctioned countries. Failure
to maintain books and
records. Failure to maintain
adequate internal controls.
Authorizing bribes and
improper travel and
entertainment for foreign
officials in Angola to win
business. Disguising
Switzerland
transactions with sanctioned
countries. Failure to maintain
books and records. Failure to
maintain adequate internal
controls.
Germany
Violated the FCPA by bribing
government officials to
obtain and retain contracts
related to the Eastern Gas
Gathering System (EGGS)
project, which was valued at
approximately $387 million.
SEC
Document
None
Argentina,
Greece, Mexico,
Poland, and
Romania
Healthcare
$250,000,000
.
None
Albania, Algeria,
Angola, Congo,
Iraq, and the
Middle East
(countries not
specified)
Energy
$420,000
None
Angola
Oil
$32,000,000
None
Nigeria
Engineering
$13,200,000
SEC
Documents
DOJ
Documents
DOJ
Documents
DOJ
Documents
DOJ
Documents
DOJ
Documents
DOJ
Documents
DOJ
Documents
DOJ
Documents
DOJ
Documents
30
12/20/2013
12/20/2013
1/6/2014
1/9/2014
2/10/2014
SEC
DOJ
DOJ
DOJ/SEC
DOJ
Archer-DanielsMidland Co.
Alfred C.
Toepfer
International
(Ukraine) Ltd.
United
States
Failing to prevent illicit
payments made by foreign
subsidiaries to Ukrainian
government officials in
violation of the FCPA.
United
States
In order to obtain value
added tax refunds from the
government, defendant paid
third-party vendors to pass
on nearly all of that money
as bribes to government
officials. Defendant is
subsidiary of Archer-DanielsMidland Co.
British
Virgin
Islands
Bribing Colombia Gov.
official to secure oil services
contracts.
Alcoa World
Alumina LLC
United
States
Kickbacks to Bahrain Gov.
officials to secure a longterm alumina supply.
Bechtel
Corporation,
GESCo
United
States
VP/GM took kickbacks from
power companies in
exchange for preferential
treatment.
PetroTiger. Ltd
SEC
Document
$36,000,000
None
Ukraine
Food
$17,771,613
None
Ukraine
Food
Pending
CEO Knut
Hammarskjold:
Pending
GC Gregory
Weisman: Pending
Colombia
Energy
$384,000,000
None
Kingdom of
Bahrain
Aluminum
None
VP/GM Asem
Elgawhary: Pending
Egypt
Energy
DOJ
Documents
DOJ
Documents
DOJ
Documents
DOJ
Documents
DOJ
Documents
DOJ
Documents
SEC
Documents
DOJ
Documents
31
DOJ
Documents
DOJ
Documents
3/19/2014
DOJ
Marubeni
Corporation
Japan
Bribes to high-ranking
government officials in
Indonesia to secure a
lucrative power project.
DOJ
Documents
$88,000,000
VP Frederic
Pierucci: Pending
VP David
Rothschild: Pending
Indonesia
Energy
India
Mining
DOJ
Documents
DOJ
Documents
DOJ
Documents
DOJ
Documents
4/1/2014
DOJ
Group DF
Limited
British
Virgin
Islands
$18.5 million in bribes to
Indian officials to secure
licenses to mine minerals.
DOJ
Documents
DOJ
Documents
DOJ
Documents
32
Pending
Pending
DOJ
Documents
4/9/2014
DOJ/SEC
HewlettPackard
Company
United
States
Bribing Russian, Polish and
Mexican Gov. officials to
secure government
technology contracts.
DOJ
Documents
DOJ
Documents
$108,000,000
None
Russia,
Poland,
Mexico
Technology
Pending
Pending
Venezuela
Financial
$1,906,000
None
Pakistan
Weapons
SEC
Documents
4/10/2014
7/28/2014
DOJ
SEC
Direct Access
Partners
United
States
Conspiracy to pay bribes to
Venezuela’s state economic
development bank in return
for trading business.
Smith &
Wesson
Holding
Corporation
United
States
Bribed Pakistani Police
officials to obtain a
contract to sell firearms to
Pakistani police.
DOJ
Documents
DOJ
Documents
SEC
Documents
33