Tagged: bribery

18 Nov, 2024

Telefónica Pays $85.2 Million to Settle FCPA Charges involving Venezuela Bribery (Part I of III)

Telefónica Venezolana C.A. (“Telefónica Venezolana”), the Venezuela-based subsidiary of Telefónica S.A. (Telefónica), the Spanish telecommunications company entered into a deferred prosecution agreement (“DPA”) and agreed to pay over $85.2 million to resolve DOJ FCPA charges stemming from bribery payments to Venezuelan government officials to secure preferential access to U.S. dollars in a currency auction. Telefónica Venezolana entered into a three-year DPA and the filing of a...

Podcasts

10 Nov, 2024

Episode 344 — SEC Settles FCPA Case with Moog, Inc. for $1.7 Million

The SEC notched another FCPA settlement, continuing its steady pursuit and resolution of FCPA cases. In the meantime, the Justice Department has been silent in the FCPA enforcement arena. In its latest settlement, Moog, Inc. (“Moog”), a New York-based global manufacturer of motion controls systems for aerospace, defense, industrial and medical markets, agreed to pay a civil penalty of $1.1 million and disgorge nearly $600,000,...

Raytheon’s FCPA and ITAR Case (Part III of IV)

General

31 Oct, 2024

Raytheon’s FCPA and ITAR Case (Part III of IV)

Raytheon’s comprehensive settlement included FCPA violations and failures to make required disclosures to the Defense Department concerning fees and commissions. This portion of the settlement was filed in the Eastern District of New York. Raytheon formed a joint venture with a French company. Its bribery scheme involved a subsidiary of the joint venture, Integrated Defense Systems (“IDS”), which was controlled by Raytheon. Between approximately 2012...

The Deere SEC FCPA Settlement: A Textbook Case of Expense Abuse (Part I of II)

General

19 Sep, 2024

The Deere SEC FCPA Settlement: A Textbook Case of Expense Abuse (Part I of II)

The SEC’s recent settlement with Deere & Company for $9.9 million for FCPA violations is another textbook example of bribery schemes, which revealed the absence of a culture of compliance, and the circumvention of basic entertainment, hospitality and travel expense controls. Deere’s bribery scheme involved its Thailand subsidiary, Wirtgen Thailand, and various improper payments to government officials, including cash, sham consulting fees, extravagant “factory visit”...

Trafigura’s Bribery Scheme: Clandestine Meetings, 3rd Parties and Shell Companies (Part II of III)

General

9 Apr, 2024

Trafigura’s Bribery Scheme: Clandestine Meetings, 3rd Parties and Shell Companies (Part II of III)

Trafigura’s bribery scheme resembles the same schemes implemented by its significant competitors — Vitol, Glencore, Gunvor. At the core of the conduct, Petrobras and Brazilian government officials collected bribes in exchange for valuable contracts for Petrobras oil. The factual statement reflects DOJ’s extensive knowledge base in the international commodity trading industry — DOJ had access to several significant cooperating witnesses, including Petrobras officials and trader...

Freepoint FCPA Settlement: Incendiary Mix of Commodities Trading and Third-Party Risks (Part II of II)

General

12 Jan, 2024

Freepoint FCPA Settlement: Incendiary Mix of Commodities Trading and Third-Party Risks (Part II of II)

Perhaps it is fitting to end this unusual FCPA enforcement year with another in a series of compliance reminders — the quickest way to experience a bribery scandal is to ignore third-party risks. This has been a continuing theme this year and Freepoint is yet another example of why managing third-party risks is so important to any anti-bribery compliance program. The relevant facts underlying the...

DOJ and CFTC Close Out Slow FCPA Enforcement Year with $98 Million Resolution with Freepoint Commodities LLC (Part I of II)

General

12 Jan, 2024

DOJ and CFTC Close Out Slow FCPA Enforcement Year with $98 Million Resolution with Freepoint Commodities LLC (Part I of II)

The Justice Department’s FCPA enforcement record for 2024 was slow. This trend was unexpected, contrary to my own predictions and of various other prognosticators. It is hard to explain why this slowdown occurred. DOJ’s record is hard to square against DOJ official speeches, statements and policy changes, which all were premised on an expectation of increased enforcement over prior years. In its last FCPA enforcement...

General

29 Nov, 2023

Lessons Learned from the Tysers Insurance Brokers and H.W. Wood Limited FCPA Settlements (Part III of III)

The Tysers and Wood FCPA settlements reflect something old and something new in the FCPA enforcement world. On the old side, at the core of the FCPA violations was the critical role played by the intermediary company. Unlike most third-party FCPA cases, where a third-party may be enlisted to further a bribery scheme by funneling payments directly to a foreign official, the intermediary in the...

The Ins and Outs of the Ghana Bribery Scheme (Part II of II)

General

21 Nov, 2022

The Ins and Outs of the Ghana Bribery Scheme (Part II of II)

This is a very complicated case, Maude. You know, a lotta ins, a lotta outs, a lotta what-have-yous. And, uh, a lotta strands to keep in my head, man. Lotta strands in old Duder’s head. – The Dude, The Big Lebowski Each FCPA case provides valuable lessons in the mechanics of bribery schemes and the common techniques used by violators to secure funds and make illegal payments to...

Goldman Sachs Official Indicted Over Ghana Bribery Scheme (Part I of II)

General

21 Nov, 2022

Goldman Sachs Official Indicted Over Ghana Bribery Scheme (Part I of II)

Talk about a reminder of the past, Asante Berko, a former Executive Director in Goldman Sachs, recently was arrested in London on criminal FCPA charges arising from his involvement in a bribery scheme in Ghana. The surprising part of the case was the delay in his arrest – over 2 years. In 2020, Berko was charged by the SEC for FCPA violations. He settled the...