FCPA

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