Guilty Plea
This recent post checked in on the Foreign Corrupt Practices Act enforcement action against Abraham Cigarroa Cervantes (pictured – a Mexican citizen described as a former finance director of the Latin America division of Stericycle).
In terms of background, 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.”
Individual Pleads Guilty To A Bribery Scheme Involving Nepal Airlines
Last month, Julian Aires (an individual associated with a joint venture partner of AAR Corp. – a U.S. based aviation services company) pleaded guilty to conspiracy to violate the FCPA’s anti-bribery provisions in connection with business dealings with South Africa Airways (SAA) as well as a contract involving Swissport and SAA. (See here for the prior post).
It was noted that the enforcement action was likely the first of several related enforcement actions to come as AAR’s recent annual report disclosed FCPA scrutiny in South Africa as well as Nepal.
Sure enough.
Recently, Deepak Sharma (pictured) (a United Kingdom citizen and resident) pleaded guilty to conspiracy to violate the FCPA’s anti-bribery provisions in connection with a bribery scheme involving Nepal Airlines Corporation (“NAC”), an alleged instrumentality of the Nepali government.
Venezuelan Citizen Charged With FCPA Offenses In Connection Venezuelan Food Bribery Scheme
Earlier this week a criminal information was filed in the Southern District of Florida charging Orlando Alfonso Contreras Saab (a citizen of Venezuela) with conspiracy to violate the FCPA in connection with an alleged Venezuelan bribery scheme.
According to the information, Contreras Saab and his co-conspirators “unlawfully enrich[ed] themselves by engaging in a scheme to bribe Venezuelan officials to obtain and retain contracts and other business advantages, including obtaining mutli-million-dollar contracts with entities and instrumentalities owned and controlled by the Venezuelan government for the production, importation, and distribution of food and medicine to the people of Venezuela.”
Fifth Circuit’s Nullification Of Dismissal In Rafoi And Murta Reaffirms The Importance Of Preparing For FCPA Trials
A guest post from Andrew Feldman (The Feldman Firm PLLC which represents foreign nationals in FCPA cases and investigations with a focus on South America and Spain and recently represented Venezuelan nationals in an FCPA trial and is lead counsel in FCPA cases involving South American nationals including in Peru and Ecuador.).
Venezuela continues to be an attractive target for federal prosecutors investigating bribery and corruption. And, most, if not all, defendants in Venezuela FCPA cases have plead guilty opting against a trial. Months ago though, in a series of surprising opinions (here and here), a federal judge dismissed all counts in an indictment in a complex Foreign Corrupt Practices Act or “FCPA” and money laundering case involving Venezuela and Petroleos De Venezuela, SA (or PDVDSA). The defendants who benefitted from those dismissals were a Swiss national, Daisy Teresa Rafoi Bleuler, and a Swiss/Portuguese national, Paulo Jorge Da Costa Casquiero Murta.
Fifth Circuit Reinstates FCPA And Related Charges Against Rafoi-Bleuler And Murta Holding That – At This Stage Of The Proceedings – The Indictment Was Good Enough And Also Holds That The Term “Agent” Is Not Unconstitutionally Vague
As highlighted in this prior post, in 2019 Daisy Rafoi-Bleuler (a citizen of Switzerland and partner in a Swiss Wealth Management firm) and Paulo Caqueiro Murta (a citizen of Portugal and Switzerland and employee in a Swiss Management firm) were criminally charged with Foreign Corrupt Practices Act and related offenses for allegedly directing bribes to various individuals at PDVSA (Venezuela’s state-owned and state-controlled energy company).
As highlighted in this post, in late October 2020 Rafoi-Bleuler filed a motion to dismiss the criminal charges. In summary fashion, the motion argued: “The indictment of Ms. Rafoi-Bleuler, a citizen and resident of Switzerland, continues the worrisome trend by the Department of Justice to stretch the reach of the United States’ criminal statutes beyond Congress’ intent in an attempt to police the world. Despite having violated no laws in Switzerland and having no contact with the United States …, Ms. Rafoi-Bleuler finds herself hailed into a U.S. court in contravention of clear statutory language, legal precedent, and international norms. Courts have increasingly, and correctly, rejected such attempts by the government and this Court should continue as well …”.