Archive

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,

August 22, 2023

Reinaldo Vargas-Rodriguez, the former mayor of Humacao, Puerto Rico has been sentenced to over 3 years in prison for accepting bribes from two companies in exchange for awarding them municipal contracts. According to DOJ, Vargas-Rodriguez accepted $27,000 in cash payments for awarding contracts for paving services and waste disposal. DOJ

Tagged in: Bribery and Bid-Rigging,

August 10, 2023

Colombian financial services institution Corporación Financiera Colombiana S.A. (Corficolombiana) has agreed to pay over $80 million to resolve foreign bribery investigations by criminal, civil, and administrative authorities in the United States and Colombia. Between 2012 and 2015, Corficolombiana allegedly conspired with Brazilian-based construction conglomerate Odebrecht S.A. (Odebrecht) to offer and pay more than $20 million in bribes to Colombian government officials in order to win rights to construct and operate a 328-mile toll road. As a result, Corficolombiana earned more than $28 million in profits. Now, in addition to the financial penalties that it will pay—which will be divided between DOJ and SEC—the company will be subject to a three-year deferred prosecution agreement with DOJ. DOJ; SEC

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

May 16, 2023

Randall Judge Phelan, a former Tribal government official, will spend 5 years in prison for soliciting bribes and kickbacks from a contractor providing construction services on the Fort Berthold Indian Reservation in North Dakota, the home of the Mandan, Hidatsa, and Arikara Nation. For approximately 8 years, from 2013 to 2020, Phelan solicited and accepted bribes and kickbacks totaling more than $645,000. In exchange, Phelan helped the contractor’s business by awarding millions of dollars in contracts, fabricating bids, advocating for the contractor with other Tribal officials, and facilitating the submission and payment of fraudulent invoices. DOJ, USAO ND

Tagged in: Bribery and Bid-Rigging, Government Procurement Fraud,

April 21, 2023

Keith Alan Seguin, an Air Force civilian employee, will spend 188 months in prison and pay over $39 million in restitution to the Air Force, Army and General Services Administration, and the IRS, and forfeit over $2.3 million that he received in bribe money for colluding with others to evade competition and steer $100 million in government Air Force projects to them. Seguin was charged with making a false income tax return and for conspiracy to commit wire fraud. USAO WDTX

Tagged in: Bribery and Bid-Rigging, Criminal Proceedings, Defense Contract Fraud, Government Procurement Fraud,

April 17, 2023

Bill R. Miller, a construction company owner, will spend 78 months in prison and will pay nearly $1 million in restitution for a bid-rigging and bribery scheme perpetrated against California Department of Transportation (Caltrans). Caltrans contract manager and Miller-co-conspirator, Choon Foo “Keith” Yong, pleaded guilty to receiving bribes that included cash, wine, furniture, and remodeling service on his home. Yong will spend 49 months in prison and will pay over nearly $1 million in restitution as well. Miller, Yong, and their co-conspirators sought to corrupt the competitive bidding process to enrich themselves, while wasting taxpayer dollars on contracts not secured through free and fair competition. DOJ, DOJ

Tagged in: Bribery and Bid-Rigging, Criminal Proceedings, Government Procurement Fraud,

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