U.K. Companies Resolve Net $17.7 Million FCPA Enforcement Action Concerning Conduct In Brazil
Approximately 7-10 years ago, a U.K. corporation (#1) engaged in alleged improper conduct with alleged Brazilian officials largely through a Brazilian intermediary company with the assistance of an Italian agent. Approximately 7 years ago, a different U.K. corporation (#2) acquired U.K. corporation #1 and then approximately 4 years ago another U.K. corporation (#3) acquired U.K. corporation #2.
And then, the U.S. government brought an FCPA enforcement action against U.K. corporation #1 because, at one time, the company had shares traded on NASDAQ – even though in connection with the same core conduct the U.K. Serious Fraud Office and Brazil law enforcement also brought an enforcement action.
That pretty much sums up last Friday’s net $17.7 million FCPA enforcement action against Amec Foster Wheeler Energy, which was acquired by Amec Plc in 2014, which in turn, was acquired by John Wood Group Plc in 2017.
The enforcement action was the first corporate FCPA enforcement action of the Biden administration and closed the approximate six month gap in corporate FCPA enforcement.
DOJ Announces FCPA And Related Charges In Relation To Griffiths Energy International’s Bribery Scheme Involving Chad
These pages have followed the bribery enforcement action against Canada based Griffiths Energy International (GEI) and related issues for quite a long time.
As highlighted in this post, in 2013 Canadian law enforcement brought an enforcement action against GEI under Canada’s Corruption of Foreign Public Officials Act regarding the company’s efforts to obtain a production sharing contract with the African nation of Chad to provide GEI with the exclusive right to explore and develop oil and gas reserves and resources in southern Chad. As noted in the prior post, in resolving the action, GEI acknowledged that it “directly agreed to provide, and indirectly provided, improper benefits to a Chadian public official in order to further the business objectives of GEI and its subsidiaries.” The public official was Chad’s Ambassador to Canada, Mahamoud Adam Bechir, and by extension his wife Ms. Nouracham Niam. Because Chad had no embassy located in Canada, the Ambassador resided in Washington D.C. and the previous post wondered if the DOJ would get involved.
Former Gunvor Employee Pleads Guilty In Connection With Ecuador Bribery Scheme
Recently Raymond Kohut (a Canadian citizen who lived in the Bahamas and worked in business development for Gunvor Group Ltd., a Switzerland based commodities firm) pleaded guilty in connection with an Ecuador bribery scheme.
Similar to the DOJ’s recent money laundering charges against Jorge Cherrez Mino and John Robert Luzuriaga Aguinaga in connection with a bribery scheme in Ecuador (see here for the prior post), the DOJ’s allegations against Kohut provide a jurisdictional basis for FCPA anti-bribery offenses, yet the information “only” charges money laundering offenses.
Vitol Resolves Net $90 Million FCPA Enforcement Action For Conduct In Brazil, Ecuador And Mexico
Last week the DOJ announced that Vitol Inc., the U.S. affiliate of the Vitol group of companies, which together form one of the largest energy trading companies in the world, agreed to resolve a net $90 million FCPA enforcement action for conduct in Brazil, Ecuador and Mexico.
As noted in the DOJ release (and as will be explored in a future post) “Vitol has also agreed to disgorge more than $12.7 million to the Commodity Futures Trading Commission (CFTC) in a related matter and to pay the CFTC a penalty of $16 million related to trading activity not covered” by the DOJ enforcement action.
Under the heading “The Brazil Bribery Scheme” this criminal information alleges:
FCPA Enforcement Actions Regarding Conduct In Ecuador
Ecuador.
It is on the smaller side of countries in South America in terms of population and land area. However, it has the third largest oil reserves in South America and thus many companies subject to the Foreign Corrupt Practices Act do business in the country.
This post summarizes FCPA enforcement actions regarding conduct (in whole or in part) in Ecuador.