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Next Up … Trafigura

Trafigura

First it was Sargeant Marine in 2020 (see here for the prior post).

Then it was Vitol in 2020 (see here for the prior post).

Then it was Glencore in 2022 (see here for the prior post).

Then it was Freepoint Commodities in 2023 (see here for the prior post).

Then it was Gunvor in 2024 (see here for the prior post).

Next up in the list of commodities trading (or related) companies to resolve an FCPA enforcement action is Trafigura (a company which has been under FCPA and related scrutiny for years). After accounting for various credits for related foreign law enforcement actions, the net FCPA settlement amount is approximately $100.2 million (a criminal fine amount of $53.66 million and a forfeiture amount of $46.51 million).

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Issues To Consider From The Gunvor Enforcement Action

Issues

This recent post highlighted the net $474.4 million Foreign Corrupt Practices Act enforcement action against Gunvor (a Swiss-based energy trading company – a subsidiary of Gunvor Group Ltd., a multinational energy commodities trading company registered in Cyprus).

In summary fashion, the DOJ alleged that between 2012 and 2020 Gunvor, through various managers, “knowingly and willfully conspired and agreed with others to corruptly offer and pay bribes to, and for the benefit of, Ecuadorian officials to secure improper advantages in order to obtain and retain business from Petroecuador in connection with the purchase and sale of oil products through contracts between Petroecuador” and state-owned energy trading companies based in Asia.

This post highlights additional issues to consider from the enforcement action.

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Issues To Consider From The SAP Enforcement Action

Issues

This previous post highlighted the recent FCPA enforcement action against SAP based on conduct in South Africa, Indonesia, Malawi, Kenya, Tanzania, Ghana, and Azerbaijan.

This post highlights additional issues to consider.

Timeline

As highlighted in this previous post, in mid-2017 SAP disclosed that it was under FCPA scrutiny concerning its business practices in South Africa.

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SAP Joins The Repeat Offender Club

sap2

In 2016 SAP (a German software company with American Depository Shares registered with the SEC) resolved a $3.9 million Foreign Corrupt Practices Act enforcement action.

As highlighted here, in 2019 the company disclosed additional FCPA scrutiny and stated: “SAP has received communications and whistleblower information alleging conduct that may violate anti-bribery laws in South Africa, the United States (including the U.S. Foreign Corrupt Practices Act (FCPA)), and other countries.”

Yesterday, SAP joined the ever-growing FCPA repeat offender club as the DOJ and SEC announced (here and here) related FCPA enforcement actions against the company. The net FCPA settlement amount is $102.5 million: DOJ ($63.6 million) and SEC ($38.9 million).

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Freepoint Commodities Resolves FCPA Enforcement Action

freepoint

In February 2023, the DOJ announced that Glenn Oztemel (previously employed by Freepoint Commodities LLC) and Eduardo Innecco (an agent for the company) were charged with FCPA and related offenses for an alleged Brazil bribery scheme. (See here for the prior post).

In summary fashion, the indictment alleged:

“Between in or about 2010 and continuing until in or about 2018, Glenn Oztemel and Eduardo Innecco, together and with others, agreed to pay, and did pay, bribes to foreign officials at Brazil’s state-owned and state-controlled oil and gas company, Petroleo Brasileiro S.A. – Petro bras (“Petrobras”), on behalf of Trading Company #1 and Trading Company #2. In exchange for the bribes, foreign officials at Petrobras, including Rodrigo Berkowitz (“Berkowitz”), who has been charged separately, provided Oztemel, Innecco and others with confidential information related to Petrobras’s business. The inside information and other improper assistance Berkowitz provided to Oztemel, Innecco and others gave Trading Company #1 and Trading Company #2 improper business advantages in trades with Petrobras.

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