January 17, 2018

Top-5 Foreign Corrupt Practices Act (FCPA) Settlements for 2017

By the C|C Whistleblower Lawyer Team

Here is our look-back at the top-5 Foreign Corrupt Practices Act (FCPA) settlements for 2017. Click here for a chronological listing of all DOJ fraud recoveries for 2017.

Telia Company AB — The Stockholm-based company and its Uzbek subsidiary Coscom LLC agreed to pay a combined total penalty of more than $965 million to resolve charges of violating the Foreign Corrupt Practices Act (FCPA) arising out of a scheme to pay bribes in Uzbekistan. DOJ

Rolls-Royce plc — The United Kingdom-based manufacturer and distributor of power systems for the aerospace, defense, marine and energy sectors agreed to pay nearly $170 million as part of an $800 million global resolution to investigations by DOJ and U.K. and Brazilian authorities into a long-running scheme to bribe government officials in exchange for government contracts in violation of the Foreign Corrupt Practices Act.  According to company admissions, Rolls-Royce paid more than $35 million in bribes through third parties to foreign officials in various countries including Thailand, Brazil, Kazakhstan, Azerbaijan, Angola and Iraq in exchange for those officials’ assistance in providing confidential information and awarding contracts to Rolls-Royce and affiliated entities. DOJ

Keppel Offshore & Marine Ltd. — The Singapore-based company that operates shipyards and repairs and upgrades shipping vessels, and its wholly owned U.S. subsidiary, Keppel Offshore & Marine USA Inc., agreed to pay a combined total penalty of more than $422 million to resolve criminal charges of violating the Foreign Corrupt Practices Act and related charges from authorities in Brazil and Singapore.  Specifically, Keppel participated in a decade-long scheme to pay millions of dollars in bribes to officials in Brazil. DOJ

SBM Offshore N.V. — The Netherlands-based company specializing in the manufacture and design of offshore oil drilling equipment, and its wholly-owned U.S. subsidiary SBM Offshore USA Inc., agreed to resolve criminal charges and pay a criminal penalty of $238 million for violating the Foreign Corrupt Practices Act (FCPA) in connection with schemes involving the bribery of foreign officials in Brazil, Angola, Equatorial Guinea, Kazakhstan and Iraq. DOJ

Zimmer Biomet Holdings Inc. — The Indiana-based manufacturer of orthopedic and dental implant devices agreed to pay a $17.4 million criminal penalty in connection with a scheme to pay bribes to government officials in Mexico and for violations of the internal controls provisions of the Foreign Corrupt Practices Act involving the company’s operations in Mexico and Brazil.  In related proceedings, the company also agreed to pay the SEC disgorgement of $6.5 million including pre-judgment interest and $6.5 million as a civil penalty for a total government payout of roughly $30.5 million. DOJ

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