Contact

Click here for a confidential contact or call:

1-212-350-2774

Archive

Page 1 of 45

March 1, 2024

Switzerland-based international commodities trading company Gunvor S.A. has pleaded guilty and agreed to pay over $661 million to resolve charges of violating the Foreign Corrupt Practices Act in connection with misconduct in Ecuador.  Over half of the proceeds will cover a criminal monetary penalty, while the remainder is a forfeiture of funds illegally gained through 8 years of bribes to Ecuadorean government officials to secure business with Petroecuador, the state-owned and controlled oil company.  Gunvor will also pay $98 million to Swiss authorities to resolve charges there.  DOJ

Tagged in: Bribery and Bid-Rigging, FCPA,

January 10, 2024

German software company SAP SE (SAP) has agreed to pay over $220 million and enter into a three-year deferred prosecution agreement with the DOJ to resolve allegations of violating the Foreign Corrupt Practices Act (FCPA) by paying bribes to government officials in Azerbaijan, Ghana, Indonesia, Kenya, Malawi, South Africa, and Tanzania from at least 2014 to 2022.  The company allegedly paid third parties to pay the bribes, then recorded the bribes as legitimate business expenses in its books and records.  To resolve parallel investigations with other authorities, SAP has agreed to pay almost $100 million to the SEC, which will be offset by a $59 million payment already made to the South African government.  DOJ; SEC

Tagged in: Bribery and Bid-Rigging, FCPA,

December 14, 2023

Freepoint Commodities LLC will pay more than $98 million in civil penalties and disgorgement for improperly obtaining and trading on material non-public information. Freepoint paid millions in bribes to government officials in Brazil to obtain highly confidential information related to the purchase and sale of fuel oil. Certain members of Freepoint's oil trading team knew of and took steps to conceal the fraud by using code words, fake names, and private email addresses, all to gain unlawful competitive advantages in oil products trading. DOJ; CFTC

Tagged in: Bribery and Bid-Rigging, FCPA, Fraud in CFTC-Regulated Markets, Market Manipulation and Trading Violations, Misrepresentations, Regulatory Violations,

November 20, 2023

Two U.K.-based reinsurance brokers, Tysers Insurance Brokers Limited and H.W. Wood Limited, have agreed to pay $36 million and $22.5 million in criminal penalties respectively for participating in a scheme to bribe Ecuadorian officials through transactions based in Florida.  Tysers—then known as Integro Insurance Brokers Limited—and H.W. Wood were found to have violated the Foreign Corrupt Practices Act when they paid $2.8 million in bribes to the chairman of two government-owned insurance companies and three government officials, by way of almost $30 million in commissions paid to third parties.  In addition to the criminal penalties, Tysers will forfeit $10.5 million, and H.W. Wood will forfeit $2.3 million, with H.W. Wood’s penalties reduced due to demonstrated inability to pay.  DOJ

Tagged in: Bribery and Bid-Rigging, Criminal Proceedings, FCPA,

September 29, 2023

North Carolina-based global specialty chemical manufacturing company Albemarle Corporation has agreed to pay over $218 million in penalties and forfeiture to the DOJ, $103.6 million in disgorgement and prejudgment interest to the SEC, and enter into a three-year non-prosecution agreement to settle charges of violating the anti-bribery, recordkeeping, and internal accounting controls provision of the Foreign Corrupt Practices Act (FCPA).  Albemarle admitted to using third-party intermediaries to pay bribes from about 2009 to 2017 in order to obtain and retain business with state-owned oil refineries in Vietnam, Indonesia, and India.  As a result, the company obtained profits of about $98.5 million.  DOJ; SEC

Tagged in: Bribery and Bid-Rigging, Criminal Proceedings, FCPA,

September 28, 2023

The Boeing Company has agreed to pay $8.1 million to resolve allegations of violating the False Claims Act.  Under a Navy contract to manufacture a tiltrotor military aircraft, Boeing allegedly failed to comply with certain manufacturing specifications, submitted false claims, and made false statements.  The claims were brought in a qui tam suit by former Boeing employees, who will receive a relator’s share of $1.5 million as a result of the settlement.  DOJ

Tagged in: Defense Contract Fraud, FCA Federal, Whistleblower Case, Whistleblower Rewards,

September 28, 2023

Energy provider Exelon Corporation and its subsidiary Commonwealth Edison Company (ComED) have agreed to pay $46.2 million to settle charges of attempting to influence legislation through illegal bribes to then-Speaker of the Illinois House of Representatives, Michael Madigan.  Between 2011 and 2019, in anticipation of benefits worth more than $150 million, ComEd provided $1.3 million in monetary payments, as well as employment and subcontracts, to Madigan’s associates.  Former ComED CEO Anne Pramaggiore—who allegedly directed and participated in the scheme, lied to investors and auditors, and filed false certifications—continues to face charges of violating federal securities laws.  SEC

Tagged in: Bribery and Bid-Rigging, Misrepresentations,

September 15, 2023

Navmar Applied Sciences Corp. has agreed to pay $4.4 million to resolve allegations of double billing and improperly shifting costs between contracts, in violation of Federal Acquisition Regulations and the False Claims Act.  While under a series of Navy contracts to manufacture, design, and test emerging intelligence technologies, the company double billed for the same costs on two separate contracts, and improperly shifted costs incurred under some contracts to other contracts.  DOJ

Tagged in: Defense Contract Fraud, FCA Federal,

September 12, 2023

J&J Korea Inc. has been ordered to pay nearly $9 million in criminal penalty and restitution after pleading guilty to rigging bids and committing fraud against the U.S. government.  J&J was found to have conspired with others in order to win most of the subcontracts being offered by the U.S. Department of Defense for the maintenance of military hospitals in South Korea.  DOJ

Tagged in: Criminal Proceedings, Defense Contract Fraud,

September 5, 2023

Verizon Business Network Services LLC has agreed to pay over $4 million in connection with its Managed Trusted Internet Protocol Service (MTIPS), which provides federal agencies with secure connections to the internet.  The company self-disclosed that its MTIPS service failed to comply with General Services Administration (GSA) contracts because it didn’t satisfy required cybersecurity protocols.  DOJ

Tagged in: Cybersecurity and Data Breaches, FCA Federal, Government Procurement Fraud,

1 2 3 4 … 45

Newsletter

Subscribe to receive email updates from the Constantine Cannon blogs

Sign up for: