First it was Lucent Technologies. It settled parallel DOJ and SEC enforcement actions principally based on providing excessive travel and entertainment benefits to Chinese “foreign officials” (see here and here).
Then it was Alcatel-Lucent. It settled Costa Rican charges that it paid “kickbacks to former Costa Rican President Miguel Angel Rodriguez and other government officials in return for a 2001 contract worth $149 million to supply cellular telephone equipment.” (See here).
Then it was Alcatel-Lucent that disclosed it had reached agreements with the DOJ and SEC to resolve bribery and corruption allegations in several countries, including Costa Rica, Taiwan, and Kenya. These agreements have not yet been announced. Here is what the company most recently said in its March 23rd Form 20-F:
“FCPA investigations: In December 2009 we reached agreements in principle with the SEC and the U.S. Department of Justice with regard to the settlement of their ongoing investigations involving our alleged violations of the Foreign Corrupt Practices Act (FCPA) in several countries, including Costa Rica, Taiwan, and Kenya. Under the agreement in principle with the SEC, we would enter into a consent decree under which we would neither admit nor deny violations of the antibribery, internal controls and books and records provisions of the FCPA and would be enjoined from future violations of U.S. securities laws, pay U.S. $ 45.4 million in disgorgement of profits and prejudgment interest and agree to a three-year French anticorruption compliance monitor. Under the agreement in principle with the DOJ, we would enter into a three-year deferred prosecution agreement (DPA), charging us with violations of the internal controls and books and records provisions of the FCPA, and we would pay a total criminal fine of U.S. $ 92 million, payable in four installments over the course of three years. In addition, three of our subsidiaries – Alcatel-Lucent France, Alcatel-Lucent Trade International AG and Alcatel Centroamerica – would each plead guilty to violations of the FCPA’s antibribery, books and records and internal accounting controls provisions. If we fully comply with the terms of the DPA, the DOJ would dismiss the charges upon conclusion of the three-year term. Final agreements must still be reached with the agencies and accepted in court.”
[For those of you “scoring at home” this would appear to be yet another DOJ “bribery, yet no bribery” enforcement action against the parent company. The DOJ’s eventual sentencing memorandum is likely to mention the European Union debarment provisions which would be applicable to Paris-based Alcatel-Lucent should it have been charged with FCPA anti-bribery violations.]
As if all of the above were not enough, it was recently reported (here) that “El Instituto Costarricense de Electricidad (ICE), Costa Rica’s telecommunications and electricity provider, filed a complaint in the Miami-Dade County Circuit Court, Miami, Florida, against Alcatel Lucent S.A. and other related parties.” According to the article, “the complaint asserts claims for violations of civil racketeering and other laws of Florida in connection with Alcatel Lucent’s bribery and corruption of Costa Rican officials to secure telecommunications contracts with ICE” and that “if successful, the lawsuit will allow ICE to recover three times the amount of its damages.”