Bribery and Bid-Rigging

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

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

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

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