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A Focus On The DOJ’s Enforcement Action Against Credit Suisse

By on October 21, 2021 in 2021 Enforcement Actions, CreditSuisse, DOJ Enforcement Action, FCPA Related Charges, Financial Services Industry, Foreign Issuers, Mozambique
CS

Yesterday’s post highlighted the SEC’s recent $99 million Foreign Corrupt Practices Act (and related) enforcement action against Credit Suisse in connection with financing various projects in Mozambique.

As alluded to in the prior post, the DOJ also announced an enforcement action based on the same core conduct and charged Credit Suisse and a U.K. subsidiary with conspiracy to commit money laundering. After crediting amounts paid to the United Kingdom’s Financial Conduct Authority, Credit Suisse agreed to pay $175 million to resolve the DOJ matter while also agreeing to pay $200 million to the U.K. FCA. Because the DOJ’s enforcement action against Credit Suisse was not an FCPA enforcement action, it will not be captured in FCPA statistics published on this site. (After all, if FCPA enforcement statistics are to mean anything – they should only capture actual FCPA enforcement actions).

Nevertheless, the DOJ enforcement action is summarized below.

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Credit Suisse Resolves $99 Million SEC FCPA (And Related) Enforcement Action

By on October 20, 2021 in 2021 Enforcement Actions, CreditSuisse, Due Diligence, Financial Services Industry, Foreign Issuers, Mozambique, SEC Enforcement Action, Third Parties
CS

As highlighted here and here, in July 2018 Credit Suisse resolved a $77 million Foreign Corrupt Practices Act enforcement action focused on alleged improper hiring practices in China and the Asia Pacific region.

As highlighted here, in January 2019 the DOJ unsealed criminal charges against former Credit Suisse bankers Andrew Pearse, Surjan Singh, and Detelina Subeva charging them with conspiracy to violate the FCPA’s anti-bribery and internal controls provisions in connection with financing various Mozambican maritime projects.

This follow-up post wondered what the 2019 enforcement action would mean for Credit Suisse.

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Former Credit Suisse Bankers Charged With FCPA And Other Offenses In Connection With Various Mozambican Maritime Projects

By on January 4, 2019 in 2019 Enforcement Actions, Andrew Pearse, CreditSuisse, Detelina Subeva, DOJ Enforcement Action, Financial Services Industry, Individual Enforcement Action, Jean Boustani, Manuel Chang, Mozambique, Surjan Singh, Uncategorized
mozambique

Yesterday this criminal indictment was unsealed charging former Credit Suisse bankers Andrew Pearse, Surjan Singh, and Detelina Subeva with conspiracy to violate the FCPA’s anti-bribery and internal controls provisions in connection with financing various Mozambican maritime projects.

In many respects, the action is similar to the November 2018 enforcement action against various individuals associated with Goldman Sachs in connection with Malaysia’s 1MDB fund (see here for the prior post).

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Odebrecht / Braskem Bribery Schemes Net Approximate $420 Million FCPA Enforcement Action

By on December 21, 2016 in 2016 Enforcement Actions, Angola, Argentina, Braskem SA, Brazil, Colombia, DOJ Enforcement Action, Dominican Republic, Ecuador, Foreign Issuers, Guatemala, Internal Controls, Jurisdiction, Mexico, Monitor, Mozambique, Obstruction Charges, Odebrecht, Panama, Permits / Licenses / Customs / Tax, Peru, SEC Enforcement Action, Statute of Limitations, Third Parties, Venezuela
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Yesterday, the DOJ and SEC announced (here and here) a Foreign Corrupt Practices Act enforcement action against Odebrecht S.A. (a Brazilian holding company) and Braskem S.A. (a Brazil-based petrochemical company in which Odebrecht owns 50.1% of the voting shares, 38.1% of the total share capital and which Odebrecht “effectively controlled” according to the DOJ). Braskem has American Depositary Receipts registered with the SEC and traded on the NYSE and thus the enforcement action also included an SEC component.

Perhaps because of the less than clear DOJ release (clear once one actually reads the original source documents), this action is being reported in various places as a $3.5 billion FCPA enforcement action. While that figure represents the overall global settlement amount (Brazil and Swiss law enforcement also brought related actions), yesterday’s action was most certainly not a $3.5 billion FCPA enforcement action. Not even close.

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Embraer Bribery Schemes Result In Net $187 Million FCPA Enforcement Action

By on October 25, 2016 in 2016 Enforcement Actions, Airline Industry, DOJ Enforcement Action, Dominican Republic, Embraer, Foreign Issuers, India, Mozambique, Saudi Arabia, SEC Enforcement Action, Third Parties
embraer

Yesterday, the DOJ and SEC announced resolution of a Foreign Corrupt Practices Act enforcement action against Embraer, a Brazil-based aircraft manufacturer with American Depositary Shares listed on the New York Stock Exchange.

According to the DOJ and SEC, Embraer engaged in bribery schemes between 2008 through 2011 in the Dominican Republic, Saudi Arabia, and Mozambique in which the company approved bribe payments, through various third-parties, to various alleged “foreign officials.” According to the DOJ and SEC, Embraer’s wholly-owned U.S. subsidiary was active in the bribery schemes including by making payments from its New York based bank account. In addition, the enforcement action also involved improper conduct in India between 2005 and 2009. In total, the government alleges that Embraer made approximately $84 million as a result of the improper conduct.

The enforcement action involved a DOJ component in which the company agreed to pay a criminal penalty of approximately $107.3 million and an SEC component in which the company agreed to pay $83.8 million in disgorgement and $14.4 million in prejudgment interest. The SEC agreed to credit a disgorgement amount that Embraer agreed to pay to Brazilian authorities and this filing suggests that disgorgement amount is approximately $18.6 million. Thus, the net FCPA settlement amount was approximately $187 million.

This post goes in-depth into the enforcement action by summarizing the approximate 115 pages of resolution documents.

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