This post provides a summary of Foreign Corrupt Practices Act enforcement activity and related developments from the third quarter of 2024. (See here for a summary post from the first quarter of 2024 and here from the second quarter of 2024).
DOJ Enforcement (Corporate)
The DOJ brought corporate FCPA enforcement action in the third quarter.
Boston Consulting Group (Aug. 27th)
See here and here for prior posts.
Charges: N/A – declination with disgorgement letter refers to violations of the FCPA’s anti-bribery provisions.
Resolution Vehicle: Declination with disgorgement.
Guidelines Range: Not mentioned in the declination with disgorgement letter.
Settlement: $14,424,000 “which represents the profit to BCG from the contracts secured by the agent, as calculated by the Government and agreed to by the Company.”
Origin: Voluntary disclosure
Monitor: No
Individuals Charged: No
DOJ Enforcement (Individual)
The DOJ announced FCPA enforcement actions against four individuals in the third quarter.
As highlighted here, Julian Aires (a U.S. citizen associated with JM Aviation South Africa – a joint venture partner of AAR Corp (a U.S. based aviation services company) pleaded guilty to FCPA offenses in connection with a contract involving South Africa Airways Technical (SAAT) Ltd. (a wholly-owned subsidiary of South African Airways – SAA) as well as another contract involving Swissport (an airport ground services and air cargo handling company) and SAA.
As highlighted here, Deepak Sharma (a United Kingdom citizen and former President of Integrated Solutions at AAR) pleaded guilty to FCPA offenses in connection with a bribery scheme involving Nepal Airlines Corporation, an alleged instrumentality of the Nepali government.
As highlighted here, Roger Alejandro Pinate Martinez (a citizen of Venezuela and resident of Florida who is the co-founder, Chief Operating Officer and President of Smartmatic); and Jorge Miguel Vasquez (a citizen of the U.S. and executive for Smartmatic in Florida who reported to Pinate) were charged with FCPA and related offenses in connection with an alleged bribery scheme involving the Chairman of the Commission on Elections of the Republic of the Philippines. (See here for the interesting origin of the enforcement action).
SEC Enforcement (Corporate)
The SEC brought one corporate FCPA enforcement action in the third quarter.
Deere & Co. (Sept. 10)
See here and here for prior posts.
Charges: None (administrative order finding violations of the FCPA’s books and records and internal controls provisions)
Settlement: $9.9 (disgorgement of $4.3 million, prejudgment interest of $1.1 million and a civil monetary penalty of $4.5 million)
Origin: Unclear from the administrative order
Individuals Charged: No
Related DOJ Enforcement Action: No
SEC Enforcement (Individual)
The SEC did not bring any individual FCPA enforcement actions in the second quarter.
The last time the SEC brought an individual FCPA enforcement action was in October 2020 – a gap that is now 4 years.
Other Developments or Items of Interest
This post asks – why are “foreign officials” categorically excluded from the DOJ’s new whistleblower program? (See this post for more on the program).
As highlighted here, Javier Aguilar (a former employee of Vitol Inc.) pleaded guilty to FCPA and related offenses in connection with a Mexico bribery scheme. In February 2024, Aguilar was convicted at trial for paying bribes to Ecuadorian officials and laundering the bribe money for both the Ecuador and Mexico bribery schemes. As highlighted here, in denying Aguilar’s post trial motion for acquittal, a judge touched upon the FCPA’s “foreign official,” element, knowledge, and the FCPA’s local law affirmative defense.
As highlighted here, the Foreign Extortion Prevention Act (FEPA) remains a muddy mess even after the Foreign Extortion Prevention Technical Corrections Act became law.
As highlighted here, the Second Circuit affirmed dismissal of FCPA related securities fraud claims against Ericsson.
As highlighted here, Glenn Oztemel (previously employed by Arcadia Fuels Ltd. and Freepoint Commodities LLC) was found guilty at trial of FCPA and related offenses in connection with a Brazil bribery scheme.
As highlighted here, the DOJ announced revisions to its Evaluation of Corporate Compliance Programs policy document.
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