Waste Management Firm Executive Charged With FCPA Violations
Mexican national Abraham Cigarroa Cervantes, former finance director of waste management firm Stericycle's Latin American wing, was charged with violating the Foreign Corrupt Practices Act for helping bribe officials in Brazil, Mexico and Argentina, DOJ announced March 19.
From 2011 to 2016, Cigarroa allegedly caused "hundreds of bribe payments" to be made to the Latin and Central American officials to "obtain and retain business and to secure improper advantages for Stericycle." The company allegedly paid the bribes in cash and calculated them as a percentage of the contract payments "made by or owing from a government customer."
In Brazil, Mexico and Argentina, Cigarroa allegedly hid the bribes by falsifying books, records and accounts "that did not accurately and fairly reflect the transactions and dispositions of Stericycle’s assets," DOJ said. The firm then falsely recorded the bribes as "legitimate expenses in its consolidated books, records, and accounts," the agency said.
Cigarroa was charged with one count of conspiracy to violate the FCPA's anti-bribery provisions and one count of conspiracy to violate the FCPA’s books and records provisions. He faces a maximum five-year prison sentence for each count. Stericycle reached a deferred prosecution agreement with DOJ in 2022 for violating the FCPA, agreeing to pay over $84 million (see 2204200030).