AAR Resolves $55.6 Million FCPA Enforcement Action
As highlighted in this prior post, in July, 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.
As highlighted in this prior post, in August, Deepak Sharma (an agent of AAR and the former President of Integrated Solutions at AAR) pleaded guilty to conspiracy to violate the FCPA’s anti-bribery provisions in connection with a bribery scheme involving Nepal Airlines Corporation.
Yesterday, it was AAR’s turn as the DOJ and SEC announced (here and here) an FCPA enforcement action against the company based on the same core conduct.
The enforcement action involved a DOJ component (net $26.4 million) and an SEC component ($29.2 million).
SEC Brings First FCPA Individual Action Since 2020
Yesterday, the SEC announced a Foreign Corrupt Practices Act enforcement action against Cyril Sebastien Dominique Cabanes (“Cabanes”) – a French citizen and resident of Singapore who was previously a member of the board of directors of Azure Power Global Limited (a Mauritius company with its principal place of business in India). During the time period relevant to the enforcement action, Azure was a publicly traded company with shares traded on the New York Stock Exchange.
The Cabanes enforcement action is the first SEC FCPA enforcement action against an individual since October 2020.
BIT Mining (500.Com) Resolves FCPA Enforcement Action In Connection With Failed Japan Bribery Scheme
Yesterday the DOJ and SEC announced a net $10 million Foreign Corrupt Practices Act enforcement action against BIT Mining Ltd. (formerly known as 500.com) in connection with a failed Japan bribery scheme concerning efforts to obtain a license to operate a casino.
500.com was formerly an online sports lottery service provider incorporated in the Cayman Islands, with headquarters and major business operations in Shenzhen, China with American Depositary Shares (ADS) traded on the New York Stock Exchange (NYSE). 500.com is now known as BIT Mining, a crypto assets mining business incorporated in the Cayman Islands and headquartered in Ohio with ADSs traded on the NYSE.
The enforcement action involved a DOJ component (net $6 million – a $54 million criminal penalty, reduced to $10 million based on an inability to pay, and further reduced to $6 million reflecting a credit for the amount paid to the SEC) and an SEC component ($4 million civil penalty).
In addition, the DOJ announced that Zhengming Pan (a Chinese national and the former CEO of 500.com) was criminally indicted in June in connection with the same bribery scheme and charged with one count of conspiracy to violate the anti-bribery and books and records provisions of the FCPA, one count of violating the anti-bribery provisions of the FCPA, and two counts of violating the books and records provisions of the FCPA.
RTX Resolves Net $361 Million FCPA Enforcement Action
Raytheon (which changed its name to RTX in 2003) has been under Foreign Corrupt Practices Act (and related) scrutiny for several years.
As highlighted in this prior post, in late July 2024 the company disclosed that it would be resolving (among other things) an FCPA matter and that settlement would include a DOJ deferred prosecution agreement (with an independent compliance monitor requirement) and an SEC order.
Today, the DOJ and SEC announced resolution of the matter. Resolution involved various prongs including the False Claims Act, the Arms Export Control Act (AECA) and the International Traffic in Arms Regulations.
Moog Inc. Resolves $1.7 Million FCPA Enforcement Action Based On Indian Subsidiary Conduct
Moog Inc. (“Moog”) is a worldwide designer and manufacturer of motion controls systems for a broad range of applications in aerospace, defense, industrial and medical markets. The New York headquartered company – with four operating segments: military aircraft, commercial aircraft, space and defense, and industrial – has shares traded on the New York Stock Exchange and has sales, engineering, and manufacturing facilities in twenty-six countries.
Moog is the latest company to resolve a Foreign Corrupt Practices Act enforcement action.