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U.K. Companies Resolve Net $17.7 Million FCPA Enforcement Action Concerning Conduct In Brazil

By on June 28, 2021 in 2021 Enforcement Actions, Amec Foster Wheeler, Brazil, Foreign Issuers, Gaining Access to Confidential Documents, John Wood Group, Jurisdiction, Oil and Gas Industry, Third Parties
WoodFoster

Approximately 7-10 years ago, a U.K. corporation (#1) engaged in alleged improper conduct with alleged Brazilian officials largely through a Brazilian intermediary company with the assistance of an Italian agent. Approximately 7 years ago, a different U.K. corporation (#2) acquired U.K. corporation #1 and then approximately 4 years ago another U.K. corporation (#3) acquired U.K. corporation #2.

And then, the U.S. government brought an FCPA enforcement action against U.K. corporation #1 because, at one time, the company had shares traded on NASDAQ – even though in connection with the same core conduct the U.K. Serious Fraud Office and Brazil law enforcement also brought an enforcement action.

That pretty much sums up last Friday’s net $17.7 million FCPA enforcement action against Amec Foster Wheeler Energy, which was acquired by Amec Plc in 2014, which in turn, was acquired by John Wood Group Plc in 2017.

The enforcement action was the first corporate FCPA enforcement action of the Biden administration and closed the approximate six month gap in corporate FCPA enforcement.

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Former Braskem CEO Grubisich Pleads Guilty

By on April 16, 2021 in Braskem SA, Brazil, Jose Carlos Grubisich, Odebrecht
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As highlighted in this prior post, in late 2016 the DOJ and SEC brought a Foreign Corrupt Practices Act enforcement action against Odebrecht S.A. (a Brazilian holding company) and Braskem S.A. (a Brazil-based petrochemical company with shares traded on the NYSE in which Odebrecht owned a majority of voting shares).

The conduct at issue was egregious and largely centered on a business unit, the Division of Structured Operations, housed within an Odebrecht subsidiary that allegedly served as little more than a bribe-paying department for the benefit of Odebrecht and Braskem. According to the resolution documents, former senior executives authorized approximately $788 million in bribes, largely through the Division of Structured Operations, to alleged foreign officials in at least twelve countries. While the principal focus of the DOJ’s action (and the exclusive focus of the SEC action) concerned conduct in Brazil including the companies relationships with Petrobras, the DOJ action also alleges improper payments in Angola, Argentina, Brazil, Colombia, Dominican Republic, Ecuador, Guatemala, Mexico, Mozambique, Panama, Peru, and Venezuela.

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Father – Son Charged With FCPA Conspiracy In Connection With Sargeant Marine Action

By on January 21, 2021 in 2020 Enforcement Action, Brazil, Bruno Luz, DOJ Enforcement Action, Individual Enforcement Action, Jorge Luz, Sargeant Marine
fatherson

Some Foreign Corrupt Practices Act enforcement actions slip through the cracks.

The mid-December 2020 enforcement action against Jorge Luz and his son Bruno Luz in connection with the Sargeant Marine enforcement action (see here and here for prior posts) appears to be one such action as the DOJ never issued a press release and the actions are not even mentioned on the DOJ’s FCPA website.

The Sargeant Marine enforcement action concerned conduct in Brazil, Venezuela and Ecuador and the Luz enforcement action was based on the same core Brazil conduct alleged in the Sargeant Marine (SMI) matter. As highlighted in this prior post, five individuals were previously charged with FCPA offenses in connection with the SMI matter and the Luz enforcement action continues the clustering dynamic often seen in DOJ FCPA individual enforcement actions (that is, most corporate FCPA actions lack related individual charges, yet a few corporate enforcement actions involve 5+ related individual actions).

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Vitol Resolves Net $90 Million FCPA Enforcement Action For Conduct In Brazil, Ecuador And Mexico

By on December 7, 2020 in 2020 Enforcement Action, Brazil, DOJ Enforcement Action, Ecuador, Foreign Non-Issuer Company, Gaining Access to Confidential Documents, Jurisdiction, Mexico, Oil and Gas Industry, Third Parties, Vitol
vitol

Last week the DOJ announced that Vitol Inc., the U.S. affiliate of the Vitol group of companies, which together form one of the largest energy trading companies in the world, agreed to resolve a net $90 million FCPA enforcement action for conduct in Brazil, Ecuador and Mexico.

As noted in the DOJ release (and as will be explored in a future post) “Vitol has also agreed to disgorge more than $12.7 million to the Commodity Futures Trading Commission (CFTC) in a related matter and to pay the CFTC a penalty of $16 million related to trading activity not covered” by the DOJ enforcement action.

Under the heading “The Brazil Bribery Scheme” this criminal information alleges:

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Brazilian Company Bribes Brazilian Officials, U.S. Collects Net $155 Million In FCPA Enforcement Action

By on October 15, 2020 in 2020 Enforcement Action, Brazil, DOJ Enforcement Action, Executive Enforcement Action, Financial Services Industry, Foreign Issuers, Foreign Non-Issuer Company, Individual Enforcement Action, Joesley Batista, Jurisdiction, Pilgrims Pride, SEC Enforcement Action, Wesley Batista
J&F

This recent post posed the question of whether “foreign” in the FCPA’s “foreign official” element means as it relates to the U.S. or as it relates to the specific company at issue. The post highlighted how in recent years the FCPA enforcement agencies have adopted the former interpretation in bringing FCPA enforcement actions against foreign companies for allegedly bribing their own “domestic” officials – but “foreign” as it relates to the U.S.

In yet another example, the DOJ and SEC announced yesterday (see here and here) that J&F Investimentos S.A. (J&F a private investment holding company based in Brazil that owns approximately 250 companies primarily involved in the meat and agriculture business) and a related entity resolved a net $155 million FCPA enforcement action for allegedly bribing Brazilian officials.

The enforcement action involved a: (i) DOJ component against J&F resolved through a plea agreement in which the company paid net $128.2 million; and (ii) an SEC component against J&F, a related entity, and two individuals in which the related entity paid approximately $26.8 million and the two individuals each paid a $550,000 civil penalty.

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