Potpourri
Scrutiny Alerts
CHS Inc., an agricultural cooperative, disclosed:
“In the fourth quarter of fiscal 2018, we contacted the U.S. Department of Justice and SEC to voluntarily self-disclose potential violations of the FCPA in connection with a small number of reimbursements the Company made to Mexican customs agents in the 2014-2015 time period for payments the customs agents made to Mexican customs officials in connection with inspections of grain crossing the U.S.-Mexican border by railcar. We are fully cooperating with the government, including with the assistance of legal counsel, which assistance includes investigating other areas of potential interest to the government. We are unable at this time to predict when our or the government agencies’ review of these matters will be completed or what regulatory or other outcomes may result.”
Friday Roundup
Affirmed, very distressing, scrutiny updates, and for the reading stack. It’s all here in the Friday roundup.
Affirmed
As highlighted in this previous post, in July 2017 Dmitrij Harder was sentenced to 60 months (5 years) in federal prison and also ordered to forfeit $1.9 million after pleading guilty to two counts of violating the FCPA for “bribing an official at the European Bank for Reconstruction and Development (EBRD).”
Mace And Zubiate Sentenced
This previous post highlighted the DOJ’s enforcement action against Anthony Mace (the former CEO of SBM Offshore) and Robert Zubiate (a former sales and marketing executive at a company subsidiary). As highlighted in this prior post, the Mace enforcement action, in particular, should be required reading for all corporate executives.
Yesterday, the DOJ recently announced that Mace was sentenced to serve 36 months in prison and a fine of $150,000 and Zubiate was sentenced to serve 30 months in prison and a fine of $50,000. All of the sentencing documents on the court’s docket were filed under seal.
Judge Sentences Bahn To 6 Months And Rejects DOJ’s Request For A 70-87 Month Sentence, SEC Brings Related Enforcement Action
As highlighted in this previous post, in January 2017 the DOJ announced Foreign Corrupt Practices Act, and related charges, 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 pictured) to a Middle Eastern sovereign wealth fund.
It certainly was not a typical FCPA enforcement action. In fact it was downright strange in that the bribery scheme was unsuccessful and the third party intended to facilitate the bribery scheme simply pocketed the money for himself.
Friday Roundup
Across the pond, sentenced, unremarkable, and nonsense. It’s all here in the Friday roundup.
Across the Pond
As highlighted in this prior post, in July 2016 the U.K. Serious Fraud Office announced:
“The SFO is conducting a criminal investigation into the activities of Unaoil, its officers, its employees and its agents in connection with suspected offences of bribery, corruption and money laundering.”