Issues To Consider From The Liberty Mutual Enforcement Action
This previous post highlighted the $4.7 million FCPA enforcement action against Liberty Mutual concerning an alleged bribery scheme involving a foreign subsidiary in India.
This post highlights additional issues to consider.
Timeline
According to the DOJ, Liberty Mutual made a “timely and voluntary self-disclosure of the misconduct to the Fraud Section in March 2024, which was identified during an internal investigation that was still ongoing at the time of the disclosure.”
Liberty Mutual Resolves $4.7 Million Enforcement Action
The DOJ recently released this so-called declination with disgorgement letter regarding Liberty Mutual Insurance.
The letter begins:
“Consistent with the Criminal Division’s Corporate Enforcement and Voluntary Self-Disclosure Policy, the Department of Justice, Criminal Division, Fraud Section and the United States Attorney’s Office for the District of Massachusetts (collectively, the “Government”) have declined prosecution of your client, Liberty Mutual Insurance Company (“Liberty Mutual” or the “Company”), a global insurance company with its principal place of business in the United States, for violations of the Foreign Corrupt Practices Act (“FCPA”), 15 U.S.C. § 78dd-2. We have reached this conclusion despite evidence of bribery committed by certain employees of the Company’s subsidiary in India who were acting as agents of the Company.”