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2016 FCPA Enforcement Sets Another Record – Largest Overall Corporate Settlement Amounts

As highlighted in this prior post [1], 2016 had already become a record-breaking year on September 30th in terms of the number of corporate Foreign Corrupt Practices Act enforcement actions.

With yesterday’s net $420 million FCPA enforcement action against Oderbrecht / Braskem, 2016 has also become a record-breaking year in terms of overall corporate FCPA settlement amounts. [Note,in April 2017 [2] the DOJ trimmed the Odebrecht criminal penalty by $167 million to $93 million (it originally was $260 million). Thus, the overall net FCPA settlement amount is $252 million].

Corporate FCPA settlement amounts in 2016 stand at approximately $1.8 billion. (Note: this represents the net number after accounting for various credits and deductions in enforcement actions against foreign companies such as Oderbrecht/Braskem, Embraer, and VimpelCom).

Similar to prior large settlement years, just a few corporate enforcement actions in 2016 comprise the bulk of the overall settlement amount. Specifically, VimpelCom, Och-Ziff, Embraer, JPMorgan and Oderbrecht/Braskem make up 88% of the $1.8 billion figure.

Set forth below are prior year corporate settlement amounts.

2015 – $139 million

2014 – $1.6 billion

2013 – $720 million

2012 – $260 million

2011 – $503 million

2010 – $1.4 billion

2009 – $645 million

2008 – $885 million

2007 – $149 million

With prior years as a guide, 2016 FCPA enforcement is far from over, with several high-profile FCPA inquiries still in the pipeline (see here [3]).

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