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In Terms Of Settlement Amounts, 2020 FCPA Enforcement Has Set An All-Time Record

record breaker

Last year was a record-breaking year in terms of Foreign Corrupt Practices Act settlement amounts as the DOJ/SEC collected approximately $2.65 billion.

With this week’s record-setting $1.66 billion net FCPA settlement involving Goldman Sachs, 2020 has eclipsed 2019 as the DOJ/SEC are poised to collect $2.66 billion in FCPA settlement amounts. This amount is likely to grow with approximately two months left in 2020 as the end of the year historically is an active period for FCPA enforcement.

Granted, the $1.66 billion Goldman matter and the $347 million Novartis matter (see here for the prior post) account for approximately 75% of the overall $2.66 billion figure. But then again, as the below chart demonstrates in most prior years just a few enforcement actions shape overall FCPA enforcement statistics.

The below chart provides a summary of corporate FCPA enforcement data (DOJ and SEC combined) for the years 2007-2020 (YTD), as well as notable circumstances that significantly shaped enforcement data statistics for particular years.

Corporate FCPA Enforcement Actions (2007 – 2020)* After accounting for certain credits or deductions in several enforcement actions involving foreign companies and/or related foreign law enforcement actions.

Year Core Actions Settlement Amounts* Of Note
2020 (YTD) 10 $2.66 billion Two enforcement actions (Goldman and Novartis) comprise approximately 75% of the $2.66 billion amount
2019 14 $2.65 billion Two enforcement actions (Ericsson and MTS) comprise approximately 70% of the $2.65 billion amount
2018 17 $1 billion Three enforcement actions (Panasonic, Societe General and Petrobras) comprised approximately 75% of the $1 billion amount.
2017 13 $1.1 billion Two enforcement actions (Telia and SBM Offshore) comprised approximately 65% of the $1.13 billion amount and four enforcement actions (the two mentioned above plus Rolls-Royce and Keppel Offshore & Marine) comprised approximately 88% of the amount.
2016 27 $2.4 billion Three enforcement actions (Teva, Odebrecht/Braskem and VimpelCom) comprised approximately 56% of the $2.41 billion amount and five enforcement actions (the three mentioned above plus JP Morgan and Embraer) comprised approximately 72% of the amount.
2015 11 $139 million No enforcement actions significantly skewed the statistics.
2014 10 $1.6 billion Two enforcement actions (Alstom – $772 million and Alcoa – $384 million) comprised approximately 72% of the $1.6 billion amount.
2013 9 $720 million The $398 million Total enforcement action comprised approximately 55% of the $720 million amount.
2012 12 $260 million No enforcement actions significantly skewed the statistics.
2011 16 $503 million The $219 million JGC Corp. enforcement action involved Bonny Island conduct and comprised approximately 44% of the $503 million amount
2010 21 $1.4 billion Six enforcement actions, all resolved on the same day, involved various oil and gas companies’ use of Panalpina in Nigeria. Panalpina also resolved an enforcement action on the same day.

Two enforcement actions (Technip and Eni / Snamprogetti) involved Bonny Island conduct.

In other words, there were 14 unique corporate enforcement actions in 2010. Of further note, the two Bonny Island enforcement actions, Technip($338 million) and Eni/Snamprogetti ($365 million) comprised approximately 50% of the $1.4 billion amount.

2009 11 $645 million The $579 million KBR / Halliburton Bonny Island, Nigeria enforcement action comprised approximately 90% of the $645 million amount.
2008 10 $885 million The $800 million Siemens enforcement action comprised approximately 90% of the $885 million amount.
2007 15 $149 million Six enforcement actions involved Iraq Oil for Food conduct and these enforcement actions comprised 40% of all enforcement actions and approximately 50% of the $149 million amount.
TOTALS 196 $16.3 billion

* After accounting for certain credits or deductions in several enforcement actions involving foreign companies and/or related foreign law enforcement actions.

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