AAR Resolves $55.6 Million FCPA Enforcement Action
As highlighted in this prior post, in July, Julian Aires (an individual associated with a joint venture partner of AAR Corp. – a U.S. based aviation services company) pleaded guilty to conspiracy to violate the FCPA’s anti-bribery provisions in connection with business dealings with South Africa Airways (SAA) as well as a contract involving Swissport and SAA.
As highlighted in this prior post, in August, Deepak Sharma (an agent of AAR and the former President of Integrated Solutions at AAR) pleaded guilty to conspiracy to violate the FCPA’s anti-bribery provisions in connection with a bribery scheme involving Nepal Airlines Corporation.
Yesterday, it was AAR’s turn as the DOJ and SEC announced (here and here) an FCPA enforcement action against the company based on the same core conduct.
The enforcement action involved a DOJ component (net $26.4 million) and an SEC component ($29.2 million).
McKinsey Entity Resolves Net $61.425 Million FCPA Enforcement Action
The DOJ has announced that McKinsey and Company Africa (Pty) Ltd (“MCKINSEY AFRICA”), a wholly owned and wholly controlled subsidiary of McKinsey & Company (an international consulting firm) has resolved a Foreign Corrupt Practices Act enforcement action based on alleged bribery schemes in South Africa.
The conduct at issue largely focuses on Vikas Sagar (a citizen of India, a lawful permanent resident of the United States, a resident of South Africa) who was a partner and senior partner of McKinsey working in McKinsey’s office in Johannesburg, South Africa, and a stockholder, employee, and agent of McKinsey. In connection with the same conduct alleged in the McKinsey enforcement action, the DOJ also announced the unsealing of a guilty plea in which Sagar pleaded guilty to conspiracy to violate the FCPA’s anti-bribery provisions. (The criminal charges against Sagar were filed in December 2022).
A Closer Look At The DOJ FCPA (And Broader) Enforcement Action Against Various Individuals Associated With Adani Group and Azure Power
As indicated in this prior post, the SEC’s FCPA enforcement action against Cyril Sebastien Dominique Cabanes (“Cabanes” an individual associated with Azure Power – a former U.S. issuer) and the SEC’s securities fraud action against two senior executives of Adani Green (Gautam Adani and Sagar Adani) in connection with an alleged Indian bribery scheme were just one prong of a broader enforcement action announced earlier this week.
As highlighted in this post, the DOJ also announced unsealing of a criminal indictment (originally filed on October 24th) against the following individuals in connection with the same alleged Indian bribery scheme.
SEC Brings First FCPA Individual Action Since 2020
Yesterday, the SEC announced a Foreign Corrupt Practices Act enforcement action against Cyril Sebastien Dominique Cabanes (“Cabanes”) – a French citizen and resident of Singapore who was previously a member of the board of directors of Azure Power Global Limited (a Mauritius company with its principal place of business in India). During the time period relevant to the enforcement action, Azure was a publicly traded company with shares traded on the New York Stock Exchange.
The Cabanes enforcement action is the first SEC FCPA enforcement action against an individual since October 2020.
BIT Mining (500.Com) Resolves FCPA Enforcement Action In Connection With Failed Japan Bribery Scheme
Yesterday the DOJ and SEC announced a net $10 million Foreign Corrupt Practices Act enforcement action against BIT Mining Ltd. (formerly known as 500.com) in connection with a failed Japan bribery scheme concerning efforts to obtain a license to operate a casino.
500.com was formerly an online sports lottery service provider incorporated in the Cayman Islands, with headquarters and major business operations in Shenzhen, China with American Depositary Shares (ADS) traded on the New York Stock Exchange (NYSE). 500.com is now known as BIT Mining, a crypto assets mining business incorporated in the Cayman Islands and headquartered in Ohio with ADSs traded on the NYSE.
The enforcement action involved a DOJ component (net $6 million – a $54 million criminal penalty, reduced to $10 million based on an inability to pay, and further reduced to $6 million reflecting a credit for the amount paid to the SEC) and an SEC component ($4 million civil penalty).
In addition, the DOJ announced that Zhengming Pan (a Chinese national and the former CEO of 500.com) was criminally indicted in June in connection with the same bribery scheme and charged with one count of conspiracy to violate the anti-bribery and books and records provisions of the FCPA, one count of violating the anti-bribery provisions of the FCPA, and two counts of violating the books and records provisions of the FCPA.