Archive

December 26, 2018

Polycom, Inc., a San Jose, California based provider of communications products, has agreed to pay more than $16 million to settle charges that it violated the Foreign Corrupt Practices Act (FCPA).  Polycom's Chinese subsidiary used its local distributors and resellers to make illicit payments to Chinese government officials in exchange for assistance in securing deals for Polycom products, with managers recording false details about the transactions.  SEC

November 27, 2018

Following a guilty plea for receiving over $1 billion in bribes, the former Venezuelan national treasurer, Alejandro Andrade Cedeno ("Andrade"), was sentenced to ten years in prison and agreed to a forfeiture money judgment of $1 billion.  Andrade received the bribes in cash as well as private jets, yachts, cars, homes, champion horses, and high-end watches, in exchange for selecting the bribers to conduct currency exchange transactions for the Venezuelan government. DOJ

November 20, 2018

The owner of Venezuelan news network Globovision, Raul Gorrin Balisario, has been charged in an international money-laundering conspiracy that included the payment of millions of dollars in bribes to two high-level Venezuelan officials to secure the rights to conduct foreign currency exchange transactions at favorable rates for the Venezuelan government.  Two others pleaded guilty to charges arising under the same scheme.  Alejandro Andrade Cedeno, the former Venezuelan national treasurer, admitted to receiving over $1 billion in bribes.  Gabriel Arturo Jimenez Aray, the former owner of Banco Peravia in the Dominican Republic, admitted that he conspired with Gorrin and others to acquire the bank, through which he helped launder bribe money and other proceeds of the scheme.  DOJ; USAO SDFL

October 30, 2018

Two men have been charged with violating the Foreign Corrupt Practices Act (FCPA) for attempting to bribe Haitian government officials in order to win approval for an $84 million development project. The project would've involved building multiple facilities around the port near Môle St. Nicolas, including cement factories, shipping-related stations, a power plant, and tourist centers. To win approval for the project, Roger Richard Boncy and Joseph Baptiste allegedly discussed bribing a high-level aide, and planned to funnel the bribes through a fake humanitarian nonprofit based in Maryland. DOJ; USAO MA

September 28, 2018

Stryker Corp has agreed to pay $7.8 million to settle charges of violating the Foreign Corrupt Practices Act (FCPA) in sales of its products in China, India, and Kuwait. This is the company's second alleged violation of the FCPA in recent times; the company had paid $13.2 million to settle similar charges in 2013. According to the SEC, the current charges relate to inadequate internal controls and inaccurately recorded records. In addition to the penalty, the settlement will now require Stryker to retain an independent compliance consultant. SEC

September 27, 2018

Petroleo Brasileiro S.A. has agreed to pay a $853 million penalty and $933 million in disgorgement to settle DOJ and SEC charges that it violated the Foreign Corrupt Practices Act and filed false documents with the SEC that misled U.S. investors. According to the non-prosecution agreement struck with the DOJ, and the related SEC order, the Brazilian oil and gas company allegedly paid billions of dollars in bribes to Brazilian politicians, and then falsely categorized these kickbacks in records as relating to asset acquisition and management. DOJ; SEC.

September 25, 2018

The CEO of a Chilean-based chemical and mining company, Patricio Contesse, has agreed to pay $125,000 to settle allegations of violating the Foreign Corrupt Practices Act (FCPA) by paying over $15 million in bribes to Chilean politicians over the course of seven years, falsifying documents, and lying to auditors. His company, Sociedad Quimica y Minera de Chile, S.A. (SQM), had previously paid $30 million to settle related civil and criminal charges. SEC

September 12, 2018

United Technologies Corporation will pay a $13.9 million fine to resolve charges that it made payments in violation of the Foreign Corrupt Practices Act in an effort to sell elevators in Azerbaijan and China, and to sell aircraft engine parts China.  The payments, including trips and gifts to various foreign officials in China, Kuwait, South Korea, Pakistan, Thailand, and Indonesia, were made by United Technology's subsidiaries Otis Elevator Co. and Pratt & Whitney.  SEC

September 6, 2018

A real estate broker for Colliers International Group, Inc. has agreed to pay $225,000 to settle FCPA charges of attempting to bribe a foreign official over the sale of a commercial building in Vietnam. The broker, Joohyun Bahn, had paid the bribe to a middleman, bypassed internal accounting controls, created fake documents and messages, and lied to executives about the supposedly impending sale, which caused the company to falsely record revenue. Unfortunately for Bahn, the sale never went through because the middleman had kept the bribe for himself. SEC

September 4, 2018

Pharmaceutical company Sanofi has agreed to pay more than $25 million to resolve charges under the FCPA that it made corrupt payments to win business in Kazakhstan and the Middle East. Sanofi was alleged to have made payments to various government officials and healthcare providers to induce them to purchase or prescribe Sanofi's products.  SEC