NOT Flying Under The Radar – The Many FCPA Enforcement Actions Against Companies In The Aviation Industry

When compiling a list of the industries that have the highest Foreign Corrupt Practices Act risk, the aviation industry is probably not going to be near the top of many lists.

However, it should be because as highlighted in this post there have been approximately 20 corporate FCPA enforcement actions against companies in the industry (broadly defined) in FCPA enforcement history resulting in approximately $860 million in settlement amounts. Last week’s enforcement action against Airbus (see here for the prior post) was merely the most recent example.

In fact, the aviation industry was front and center in “The Story of the Foreign Corrupt Practices Act” as Lockheed’s payments to Japanese Prime Minister Tanaka, Prince Berhard (the Inspector General of the Dutch Armed Forces and the husband of Queen Juliana of the Netherlands) and Italian political parties was arguably the most high profile example of foreign corporate payments Congress learned about in the mid-1970’s which motivated it to enact the FCPA.

The remainder of this post highlights FCPA enforcement actions against companies in the aviation industry broadly defined.

Airbus (2020)

• $294 million enforcement action concerning conduct in China. (See here).

Panasonic (2018)

• $280 million enforcement action concerning conduct in various Middle Eastern countries. (See here and here).

United Technologies (2018)

• $13.9 million enforcement action concerning conduct in China, South Korea, Pakistan, Thailand, and Indonesia.  (See here and here).

Embraer (2016)

•  $187 million enforcement action concerning conduct in the Dominican Republic, Saudi Arabia, and Mozambique. (See here and here for prior posts).

LAN / LATAM Airlines (2016)

• $22 million enforcement action in connection with an Argentine labor dispute. (See here and here).

Dallas Airmotive (2014)

• $14 million enforcement action concerning conduct in various Latin American countries. (See here).

NORDAM Group (2012)

• $2 million enforcement action concerning conduct in China. (See here).

BizJet International / Lufthansa (2012)

• $11.8 million enforcement action concerning conduct in various Latin American countries. (See here).

United Industrial Corp. (2009)

• $337,000 enforcement action concerning conduct in Egypt. (See here).

InVision Technologies (2004)

• $800,000 enforcement action concerning conduct in Thailand, China, and the Philipines. (See here).

UNC/Lear Services (2000)

• Enforcement action concerning conduct in Saudi Arabia.

International Material Solutions (1999)

• Enforcement action concerning conduct in Brazil. (See here).

Control Systems Specialists (1998)

• Related to the above International Material Solutions action. (See here).

Lockheed (1994)

• $24.8 million enforcement action concerning conduct in Egypt. (See here).

General Electric (1992)

• $9.5 million enforcement action concerning conduct in Israel. (See here).

Venturian Corp. / NAPCO International / Dornier (1989)

• $1 million enforcement action concerning conduct in Niger. (See here).

W.S. Kirkpatrick Inc. (1985)

• $75,000 enforcement action concerning conduct in Nigeria. (See here).

Page Airlines (1978)

• Enforcement action concerning conduct in Gabon, Malaysia, Ivory Coast, Saudi Arabia, Morocco, and Uganda. (See here).