Next Up … Trafigura
First it was Sargeant Marine in 2020 (see here for the prior post).
Then it was Vitol in 2020 (see here for the prior post).
Then it was Glencore in 2022 (see here for the prior post).
Then it was Freepoint Commodities in 2023 (see here for the prior post).
Then it was Gunvor in 2024 (see here for the prior post).
Next up in the list of commodities trading (or related) companies to resolve an FCPA enforcement action is Trafigura (a company which has been under FCPA and related scrutiny for years). After accounting for various credits for related foreign law enforcement actions, the net FCPA settlement amount is approximately $100.2 million (a criminal fine amount of $53.66 million and a forfeiture amount of $46.51 million).
DOJ Charges Another Former Stericycle Executive
In mid-2022, Stericycle (an Illinois based medical waste disposal company) resolved a net $59 million parallel DOJ and SEC Foreign Corrupt Practices Act enforcement action (see here and here for prior posts).
In the words of the DOJ: “From in or about and between at least 2011 and 2016, Stericycle, through certain of its employees and agents, knowingly and willfully conspired and agreed with others to corruptly offer and pay approximately $10.5 million in bribes to, and for the benefit of, foreign officials in Brazil, Mexico, and Argentina in order to obtain and retain business and other advantages for and on behalf of Stericycle. Stericycle earned approximately $21.5 million in profits from the corrupt scheme and through its corruptly obtained and retained government contracts.”
DOJ Charges Former Stericycle Executive
In mid-2022, Stericycle (an Illinois based medical waste disposal company) resolved a net $59 million parallel DOJ and SEC Foreign Corrupt Practices Act enforcement action (see here and here for prior posts).
In the words of the DOJ: “From in or about and between at least 2011 and 2016, Stericycle, through certain of its employees and agents, knowingly and willfully conspired and agreed with others to corruptly offer and pay approximately $10.5 million in bribes to, and for the benefit of, foreign officials in Brazil, Mexico, and Argentina in order to obtain and retain business and other advantages for and on behalf of Stericycle. Stericycle earned approximately $21.5 million in profits from the corrupt scheme and through its corruptly obtained and retained government contracts.”
Last week, the DOJ filed criminal charges against Mauricio Gomez Baez based on the same core conduct. As alleged in the information, Gomez Baez (a Mexican citizen and resident of Miami) worked for Stericycle as the Senior Vice President of Stericycle’s Latin American (LATAM) division whose business responsibilities included oversight and management of Stericycle LATAM and certain of Stericycle subsidiaries, including acquisitions, operations, finance, and sales.
SAP Joins The Repeat Offender Club
In 2016 SAP (a German software company with American Depository Shares registered with the SEC) resolved a $3.9 million Foreign Corrupt Practices Act enforcement action.
As highlighted here, in 2019 the company disclosed additional FCPA scrutiny and stated: “SAP has received communications and whistleblower information alleging conduct that may violate anti-bribery laws in South Africa, the United States (including the U.S. Foreign Corrupt Practices Act (FCPA)), and other countries.”
Yesterday, SAP joined the ever-growing FCPA repeat offender club as the DOJ and SEC announced (here and here) related FCPA enforcement actions against the company. The net FCPA settlement amount is $102.5 million: DOJ ($63.6 million) and SEC ($38.9 million).
DOJ Announces Individual Enforcement Action In Connection With A Bribery Scheme Involving The Honduran National Police
Last week the DOJ announced the unsealing of an indictment criminally charging:
Carl Alan Zaglin (the owner of a Georgia-based manufacturer of law enforcement uniforms and accessories);
Francisco Roberto Cosenza Centeno (former Executive Director of the Comité Técnico del Fideicomiso para la Administración del Fondo de Protección y Seguridad Poblacional (TASA) a Honduran governmental entity that procured goods for the Honduran National Police); and
Aldo Nestor Marchena (a dual citizen of the U.S. and Peru)
for their alleged participation in a scheme to pay and conceal bribes to Honduran government officials to secure contracts to provide uniforms and other goods to the Honduran National Police.
Although not named in the indictment, the “Georgia company” is presumably Tru-Spec (owned by Atlanco, formerly Atlanta Army Navy Company).