Archive

June 25, 2020

Novartis AG, a Switzerland-based pharmaceutical company, along with its Greek subsidiary, Novartis Hellas S.A.C.I. (Novartis Greece), have agreed to pay $233 million to the DOJ and $112 to the SEC, for a combined penalty of $345 million, in order to resolve charges of violating the Foreign Corrupt Practices Act.  A former subsidiary, Alcon Pte Ltd—now a subsidiary of multinational eyecare company, Alcon Ltd—has agreed to pay $8.9 million to resolve similar charges.  Between 2012 and 2016, the subsidiaries allegedly bribed employees of state-owned hospitals and clinics in Greece and Vietnam to use Novartis or Alcon-branded products while falsely recording the improper payments.  As part of the settlement, both Novartis Greece and Alcon Pte Ltd will also enter into deferred prosecution agreements with DOJ.  DOJ; USAO NJ; SEC

April 17, 2020

Italian oilfield services company Eni S.p.A. agreed to pay a total of $24.5 million in disgorgement and interest to resolve charges that it violated the Foreign Corrupt Practices Act.  Eni, which has ADRs listed on the NY Stock Exchange, is alleged to have used its subsidiary, Saipem S.p.A. to make payments of $215 million under sham agreements with an intermediary to assist in securing contracts with Algeria’s state-owned oil company.  The intermediary had no qualifications in any relevant field, no office, and no staff – but was known to be “like a son” to the Algerian energy minister.  Eni failed to accurately record the nature of the intermediary payments in its books and records.  SEC

February 28, 2020

Cardinal Health, a pharmaceutical company in Ohio, has agreed to pay more than $8 million to resolve charges of violating the Foreign Corrupt Practices Act.  Between 2010 and 2016, the company's China branch allegedly made payments to government-employed healthcare professionals and retail companies on behalf of a European dermocosmetic company whose products Cardinal China distributed.  Additionally, the company took part in a profit-sharing agreement with the dermocosmetic company, and failed to maintain complete records on the affected accounts.  As part of the settlement, Cardinal Health will cease and desist and pay $5.4 million in disgorgement, $916,887 in prejudgment interest, and $2.5 million in civil penalty.  SEC

January 31, 2020

Airbus SE has agreed to pay more than $3.9 billion to resolve charges by U.S., U.K., and French authorities of violating the Foreign Corrupt Practices Act (FCPA), the Arms Export Control Act (AECA), and the International Traffic in Arms Regulations (ITAR).  From at least 2008 until 2015, the French aircraft manufacturer allegedly paid bribes to officials in China, Ghana, Indonesia, Malaysia, Sri Lanka, and Taiwan, in exchange for improper business advantages and other favorable treatment.  Additionally, Airbus also failed to provide accurate information to the State Department’s Directorate of Defense Trade Controls (DDTC) about commissions it paid in connection with the sale or export of arms.  DOJ; USAO DC

December 16, 2019

A Goldman Sachs executive charged with violating the Foreign Corrupt Practices Act has been permanently banned from the securities industry and ordered to pay disgorgement of $43.7 million.  In order to secure lucrative business for Goldman Sachs, managing director Tim Leissner had allegedly directed a third party intermediary to bribe government officials in Malaysia and the Emirate of Abu Dhabi.  SEC

December 6, 2019

Telefonaktiebolaget LM Ericsson (“Ericsson”) has agreed to pay more than $1 billion to resolve DOJ and SEC allegations that its subsidiaries engaged in a large-scale bribery scheme, in violation of the Foreign Corrupt Practices Act (FCPA).  The alleged misconduct occurred over a span of 16 years ending in 2016 and involved approximately $45 million in bribes paid to a consulting party in Indonesia, $31.5 million paid to third parties in China, $4.8 million paid to a consulting company in Vietnam, $2.1 million paid to government officials in Djibouti, and $450,000 paid to a consulting company in Kuwait.  To settle charges, Ericsson has entered into a deferred prosecution agreement and will pay a criminal penalty of over $520 million, as well as disgorgement and prejudgment interest of $540 million.  DOJ; USAO SDNY; SEC

November 22, 2019

The former president of Transport Logistics International, Mark Lambert, was found guilty of violating the Foreign Corrupt Practices Act for his role in a bribery scheme designed to secure a contract for TLI from JSC Techsnabexport (TENEX), a subsidiary of Russia’s State Atomic Energy Corporation.  According to the evidence at trial, Lambert worked for years to direct payments to TENEX official Vadim Mikerin, using offshore accounts and creating fake invoices.  Lambert faces five years in prison.  TLI previously agreed to pay a $2 million penalty; Mikerin previously pleaded guilty on related charges.  USAO MD

November 22, 2019

South Korea-based Samsung Heavy Industries Company Ltd. will pay $75 million in a global settlement of allegations that it engaged in an unlawful scheme to bribe government officials in Brazil.  Half of the total settlement, $37.74 million, will be paid to resolve a U.S. criminal action that the company violated the Foreign Corrupt Practices Act; the other half will be paid either to Brazilian authorities on or before November 25, 2020, or to the U.S.  Samsung was alleged to have paid millions to a Brazil-based intermediary, knowing and intending that those funds would be used to bribe officials at the Brazilian state-owned Petrobras in order to obtain a shipbuilding contract for Samsung.  DOJ; USAO ED VA

September 27, 2019

Canadian Westport Fuel Systems, Inc., and its former CEO Nancy Gougarty will pay $4.1 million to resolve charges that they violated the Foreign Corrupt Practices Act in making payment to Chinese government officials.  The clean fuel technology company was found by the SEC to have transferred shares in a Westport Chinese joint venture to a Chinese private equity firm in which a government official held a financial interest, misrepresented the identity of the parties involved, and circumvented internal accounting controls.  SEC

September 26, 2019

Wisconsin-based Quad/Graphics Inc., a digital and print marketing provider, has agreed to pay $10 million to settle charges of bribing government officials in Peru and China in violation of the Foreign Corrupt Practices Act (FCPA).  The alleged misconduct by Quad/Graphics’ Peruvian subsidiary, Quad/Graphics Peru S.A., occurred from at least 2011 to 2016 and involved paid or promised bribes to government officials in order to win contracts, avoid penalties, and influence the Peruvian tax authority.  From 2010 to 2015, Quad/Graphics’ Chinese subsidiary, Quad/Tech Shanghai Trading Company, Ltd., allegedly paid or promised bribes to government employees using sham sales agents.  As part of the settlement, Quad/Graphic will pay nearly $7 million in disgorgement, $1 million in prejudgment interest, and a $2 million civil penalty, as well as self-report on its compliance program for one year.  SEC