AAR Corp.
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, AAR disclosed in its quarterly filing:
“The Company retained outside counsel to investigate possible violations of the Company’s Code of Conduct, the U.S. Foreign Corrupt Practices Act (“FCPA”), and other applicable laws, relating to the Company’s activities in Nepal and South Africa. Based on these investigations, in fiscal 2019, we self-reported these matters to the U.S. Department of Justice, the SEC and the UK Serious Fraud Office. The Company is fully cooperating with the reviews by these agencies, although we are unable at this time to predict what action, if any, they may take.
A former employee of AAR International, Inc. and an employee of a former business partner have each pleaded guilty to one count of conspiracy to violate the FCPA in connection with the matters under investigation in Nepal and South Africa.
While it is reasonably possible that we will incur a loss related to the investigations, we are unable to estimate the range of loss.”
That AAR disclosed to the DOJ/SEC in fiscal year 2019 – and still remains under scrutiny – is remarkable (although not uncommon as FCPA scrutiny tends to last approximately 4-5 years with longer time periods also common).
Boston Scientific
As highlighted in this prior post, Boston Scientific has been under FCPA scrutiny since early 2022 and disclosed in its most recent quarterly filing:
“Like many healthcare companies, the Company receives inquiries and has ongoing discussions with governmental agencies with respect to the Company’s operations, such as the Securities and Exchange Commission (SEC), the Department of Justice (DOJ) and foreign regulators, including its operations in Vietnam with respect to alleged Foreign Corrupt Practices Act (FCPA) violations the Company received in March 2022. The Company has received related subpoenas for documents from the DOJ and the SEC with respect to the Vietnam matter, and is cooperating with the government while investigating these allegations. From time to time, the Company also self-discloses potential concerns to regulators. In the course of Vietnam-related discussions with the DOJ and SEC, the Company has disclosed that it is investigating other potential concerns in Vietnam and other countries.”
