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 15 corporate FCPA enforcement actions against companies in the industry (broadly defined) throughout FCPA enforcement history. Last week’s enforcement action against Embraer (see here and here for prior posts) was merely the most recent example, albeit most high-profile given the settlement amount.

Indeed, 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 the foreign corporate payments problem Congress learned about in the mid-1970’s which motivated it to enact the FCPA.

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

Embraer (2016)

• Alleged payments to alleged “foreign officials” in the Dominican Republic, Saudi Arabia, and Mozambique

LAN / LATAM Airlines (2016)

• Alleged payments in connection with an Argentine labor dispute (see here and here).

Dallas Airmotive (2014)

• Alleged payments to alleged “foreign officials” in various Latin American countries (see here).

NORDAM Group (2012)

• Alleged payments to alleged “foreign officials” in China (see here).

BizJet International / Lufthansa (2012)

• Alleged payments to alleged “foreign officials” in various Latin American countries (see here).

BAE (2010)

• Alleged payments to an alleged “foreign official” from Saudi Arabia (see here). (Note, technically not an FCPA enforcement action because the government did not charge the large defense contractor with actual FCPA violations – to learn more see “The Facade of FCPA Enforcement“).

United Industrial Corp. (2009)

• Alleged payments to alleged “foreign officials” in Egypt (see here).

InVision Technologies (2004)

• Alleged payments to alleged “foreign officials” in Thailand, China, and the Philipines (see here).

UNC/Lear Services (2000)

• Alleged payments in connection with business in Saudi Arabia.

International Material Solutions (1999)

• Alleged payments to an alleged “foreign official” from Brazil (see here).

Control Systems Specialists (1998)

• Related to the above International Material Solutions action – alleged payments to an alleged “foreign official” from Brazil (see here).

Lockheed (1994)

• Alleged payments to alleged “foreign officials” from Egypt (see here).

General Electric (1992)

• Alleged payments in connection with business in Israel (see here).

Venturian Corp. / NAPCO International / Dornier (1989)

• Alleged payments to alleged “foreign officials” from Niger (see here).

W.S. Kirkpatrick Inc. (1985)

• Alleged payments to alleged “foreign officials” in Nigeria (see here).

Page Airlines (1978)

• Alleged payments to alleged “foreign officials” from Gabon, Malaysia, Ivory Coast, Saudi Arabia, Morocco, and Uganda (see here).