SFO Providing Real Time Disclosure in ALSTOM Investigation
For a government agency that has stated in the past that it prefers not to investigate bribery and corruption cases (see here), and for a government agency that has received mounds of criticism in connection with its bungled BAE enforcement action, the U.K. Serious Fraud Office (“SFO”) would seem to be running a public relations campaign of late.
In this release from today, the SFO states, in connection with ALSTOM investigation (see here) that:
“The Serious Fraud Office search operation runs into its second day. Following yesterday’s multi-location search operation and arrests relating to ALSTOM in the UK, the SFO made operational decisions to extend searches today at ALSTOM properties in Rugby and Ashby de la Zouch. Today’s operation involved over 50 personnel including officers from the Warwickshire and Leicestershire Police forces.”
ALSTOM – Corruption Investigation Enters the Boardroom
The U.K. Serious Fraud Office (“SFO”) issued this release today which states that “[t]hree members of the Board of ALSTOM in the UK have been arrested on suspicion of bribery and corruption, conspiracy to pay bribes, money laundering and false accounting, and have been taken to police stations to be interviewed by the Serious Fraud Office.”
According to the release, search warrants were executed at five ALSTOM businesses premises and four residential addresses. The operation, involving “109 SFO staff and 44 police officers” is code-named “Operation Ruthenium” and centers on “suspected payment of bribes by companies within the ALSTOM group in the U.K.” According to the release, “[i]t is suspected that bribes have been paid in order to win contracts overseas.”
SFO Director Richard Alderman, in a very DOJ-like statement, noted that “[t]he SFO is committed to tackling corruption” (presumably so long as it does not involve BAE) and that the SFO is “working closely with other criminal justice organizations across the world” and is “taking steps to encourage companies to report any suspicions of corruption, either within their own business or by other companies or individuals.”
ALSTOM (see here) “is a global leader in power generation and rail infrastructure.” One of the company’s major competitors is Siemens. ALSTOM’s shares are listed on the Paris Stock Exchange.