This post provides a summary of Foreign Corrupt Practices Act enforcement activity and related developments from the third quarter of 2023. (See here for a similar post for Q1 and here for Q2).
DOJ Enforcement (Corporate)
The DOJ brought two corporate enforcement actions in the third quarter. The net settlement amounts from these enforcement actions totaled $135.1 million.
Corficolombiana / Grupo Aval (August 10)
See here and here for prior posts.
Charges: Conspiracy to violate the anti-bribery provisions.
Resolution Vehicle: Criminal information charges resolved through a deferred prosecution agreement.
Guidelines Range: $58 – $116 million
Settlement: Net $20.3 million (after credits for related foreign law enforcement settlements).
Origin: Foreign law enforcement investigation.
Monitor: No
Individuals Charged: No
Albemarle (September 29)
See here for the prior post.
Charges: Conspiracy to violate the anti-bribery provisions.
Resolution Vehicle: Non-prosecution agreement.
Guidelines Range: The NPA does not contain a guidelines range.
Settlement: Net $114.8 million (after credits for related matters and other issues).
Origin: Voluntary disclosure.
Monitor: No
Individuals Charged: No
DOJ Enforcement (Individual)
The DOJ announced two individual enforcement actions in the third quarter.
As highlighted in this post, Orlando Alfonso Contreras Saab (a citizen of Venezuela) with charged with conspiracy to violate the FCPA in connection with an alleged Venezuelan bribery scheme.
As highlighted here, Gary Oztemel (the brother of Glenn Oztemel who was previously criminally charged in connection with a Brazil bribery scheme) was also criminally charged in connection with the same scheme. Gary Oztemel is the owner and president of Oil Trade & Transport S.A. (OTT) and the owner of Petro Trade Services Inc. (Petro Trade).
SEC Enforcement (Corporate)
The SEC brought four corporate FCPA enforcement action in the third quarter. SEC recovery in these actions was approximately $176.5 million.
Corficolombiana / Grupo Aval (August 10)
See here and here for prior posts.
Charges: None (administrative order finds that Corficolombiana violated the FCPA’s anti-bribery provisions and that Grupo Aval violated the books and records provisions and that Corficolombiana caused the violations. The order also finds that Grupo Aval violated the internal controls provisions and that Corficolombiana caused the violations).
Settlement: $40.3 million (disgorgement of $32,139,731 and prejudgment interest of $8,129,558).
Origin: Foreign law enforcement investigation.
Individuals Charged: No
Related DOJ Enforcement Action: Yes
3M (August 10)
See here and here for prior posts.
Charges: None (administrative order finds that 3M violated the FCPA’s books and records and internal controls provisions).
Settlement: $6.5 million ($3.5 million in disgorgement, $1 million in prejudgment interest, and a $2 million civil penalty).
Origin: Voluntary disclosure.
Individuals Charged: No
Related DOJ Enforcement Action: No
Clear Channel Outdoor (September 28)
See here for the prior post.
Charges: None (administrative order finds that Clear Channel violated the FCPA’s anti-bribery, books and records, and internal controls provisions).
Settlement: $26.1 million (disgorgement of $16,355,567, prejudgment interest of $3,760,920, and a civil monetary penalty in the amount of $6,000,000).
Origin: Foreign law enforcement investigation.
Individuals Charged: No
Related DOJ Enforcement Action: No
Albemarle (September 29)
See here for the prior post.
Charges: None (administrative order finds that Albemarle violated the FCPA’s anti-bribery, books and records and internal controls provisions).
Settlement: $103.6 million ($81.8 million in disgorgement and prejudgment interest of $21.8 million).
Origin: Voluntary disclosure.
Individuals Charged: No
Related DOJ Enforcement Action: Yes
SEC Enforcement (Individual)
The SEC did not bring any individual FCPA enforcement actions in the third quarter. The SEC has not brought an individual FCPA enforcement action since October 2020.
Other Developments or Items of Interest
As discussed here and here, the DOJ issued an FCPA Opinion Procedure Release (only the third FCPA opinion procedure release since 2014).
As highlighted here and here, two companies disclosed FCPA scrutiny in connection with the importation of monkeys from Asia.
Posts here and here highlight some laughable FCPA commentary from various media figures.
As discussed here, in connection with a DOJ FCPA enforcement action against former executives of Cognizant Technology Solutions, a judge ruled on pre-trial motions and stated “that Cognizant was acting in furtherance of generally applicable government policies does not render all of its actions state actions.”
As highlighted here, following a typical career path, the DOJ’s FCPA Unit Chief left to join FCPA Inc.
As highlighted in this post, a judge denied Samuel Bankman-Fried’s motion to dismiss an FCPA charge holding that “the indictment sufficiently pleads the business nexus element.”
