An Interesting Disclosure
In late 2014, Alstom and related entities resolved a $772 million DOJ FCPA enforcement action.
The enforcement action concerned conduct in several countries including Saudi Arabia in which the DOJ alleged improper conduct (generally between 1999 and 2002) in connection with Alstom bids for power projects with Saudi Electric Company (“SEC”), Saudi Arabia’s state-owned and state-controlled electricity company, and its predecessor entities.
In 2015, General Electric acquired Alstom’s power and grid businesses.
In 2024, GE Vernova spun-off from GE and began trading as an independent company on the New York Stock Exchange.
Recently, GE Vernova made an interesting disclosure regarding the conduct from 20 plus years ago.
In A Case That Keeps On Giving, The DOJ Announces Unsealing Of 2015 Indictment Against Former Alstom And Marubeni Executives
In mid-2013, the DOJ announced that various current and former of Alstom resolved a Foreign Corrupt Practices Act enforcement action in connection with the Tarahan power project in Indonesia. The underlying charging documents were from 2012. (See here). Thereafter, in 2013 additional individuals associated with Alstom were also charged (see here and here) including Lawrence Hoskins who was found guilty at trial in 2019. (See here).
In early-2014, Marubeni (a consortium partner of Alstom on the Tarahan project) resolved an FCPA enforcement action. (See here and here). In late 2014, Alstom resolved an FCPA enforcement action regarding alleged conduct around the world including in Indonesia in connection Tarahan power contract. (See here and here).
Yesterday, the DOJ announced the unsealing of this 2015 indictment charging Reza Moenaf (the former president of Alstom’s subsidiary in Indonesia), Eko Sulianto (the former director of sales of Alstom’s subsidiary in Indonesia) and Junji Kusunoki (the former deputy general manager of Marubeni’s Overseas Power Project Department) with conspiracy to violate the FCPA and conspiracy to commit money laundering in connection with the same core allegations found in the previous enforcement actions.
FCPA Flash – A Conversation With FCPA Violator Frederic Pierucci Regarding FCPA Enforcement Against European Companies
The FCPA Flash podcast provides in an audio format the same fresh, candid, and informed commentary about the Foreign Corrupt Practices Act and related topics as readers have come to expect from written posts on FCPA Professor.
This FCPA Flash episode is a conversation with Frederic Pierucci. In April 2013, Pierucci (a French national) was among a group of current or former Alstom executives criminally charged in connection with an alleged bribery scheme in Indonesia. Pierucci ultimately plead guilty to FCPA offenses. Upon release from U.S. prison, Pierucci authored a book titled “The American Trap.” During the podcast, Pierucci talks about his book, what motivated him to write the book, and his views that the FCPA is a “tool to destabilize” European companies and how the U.S.’s use of the FCPA is like “underground economic warfare.” During the podcast, I take issue with certain of Pierucci’s comments (for instance 7 U.S. companies have resolved FCPA enforcement actions over $100 million not the number Pierucci suggests) and the podcast contains a good back-and-forth discussion.
Friday Roundup
Consistently damaged, across the pond, scrutiny alerts and updates, and for the reading stack. It’s all here in the Friday roundup.
“Consistently Damaged”
In this 12 minute video, Neil Bruce (CEO and President of SNC-Lavalin) describes his frustration for how the company is not being offered a remediation agreement (Canada’s term for a deferred prosecution agreement) in connection with its long-standing scrutiny. (See here and here for prior posts).
Friday Roundup
Guilty plea, Petrobras civil settlement, Alstom is done reporting, scrutiny alert, SEC FCPA enforcement, from the docket, checking in up north, and for the reading stack. It’s all here in the Friday roundup.
Guilty Plea
As highlighted in this prior post, in January 2017 the DOJ announced an FCPA and related enforcement action against four individuals for their roles in a scheme to pay $2.5 million in bribes to facilitate the $800 million sale of a commercial building in Vietnam (the so-called Landmark 72) to a Middle Eastern sovereign wealth fund.
Today, the DOJ announced: “Joo Hyun Bahn, aka Dennis Bahn, 39, of Tenafly, New Jersey, pleaded guilty in federal court in Manhattan to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and one count of violating the FCPA. U.S. District Judge Edgardo Ramos of the Southern District of New York accepted the guilty plea. Sentencing is scheduled for June 29 …”.