The former CEO of a Brazilian petrochemical company was charged with violations of the Foreign Corrupt Practices Act for his role in a money-laundering and bribery scheme, the Justice Department said Nov. 20. Jose Carlos Grubisich, the CEO of Braskem and an official of its parent company, Odebrecht, bribed Brazilian government officials and political parties in violation of the FCPA’s anti-bribery and books and records provision, the agency said.
Two Chinese citizens were charged with violating the Foreign Corrupt Practices Act after bribing Chinese officials, the Justice Department said Nov. 14. Yanliang Li and Hongwei Yang, who held leadership positions at a Chinese subsidiary of an “international multi-level marketing company,” paid bribes to retain operating licenses in China and to suppress government investigations and negative media reports about their company, the agency said.
A Miami-based financial adviser pleaded guilty to money laundering charges after violating the Foreign Corrupt Practices Act, the Justice Department said in an Oct. 11 press release. Frank Roberto Chatburn Ripalda, a citizen of the U.S. and Ecuador, tried to bribe officials at Empresa Pública de Hidrocarburos del Ecuador (PetroEcuador), Ecuador’s state-owned oil company, the press release said. Chatburn faces a 20-year maximum prison sentence.
China is increasing enforcement of compliance with measures aimed at countering commercial bribery by foreign companies, according to an Oct. 7 Lexology post from AnJie Law Firm. As companies increase efforts to comply with the U.S. Foreign Corrupt Practices Act, they may also have to review their compliance under China’s recently amended Anti-unfair Competition Act, the post said, which cracks down on “unlawful commercial activities” by both domestic and foreign companies. The changes are “set to become as big a focus area as domestic companies' compliance with foreign laws,” the law firm said.
The FCPA Blog released its Foreign Corrupt Practices Act enforcement report for the third quarter of 2019, featuring seven enforcement penalties worth close to $78.5 million. The penalties include two civil settlements, two indictments, one prison sentence and another awaiting sentencing after pleading guilty, according to the report. There were also three corporate declinations from the Justice Department. The penalty total for 2019’s third quarter was less than for the third quarter in each of 2018 and 2017, which added up to $1.97 billion and about $1 billion, respectively.
A Micronesian government official was sentenced to 18 months in prison and three years of supervised release after facing money laundering charges that violated the Foreign Corrupt Practices Act, the Justice Department said July 30. Master Halbert, a Micronesian Department of Transportation, Communications and Infrastructure official, pleaded guilty to the charges in April (see 1904040035). Halbert conspired with Frank James Lyon, owner of a Honolulu-based engineering and consulting company, to award Lyon corrupt government contracts. Lyon pleaded guilty and was sentenced to 30 months in prison in May (see 1905140033).
Microsoft will pay a total of about $25 million in penalties, including a nearly $9 million criminal fine, to resolve an investigation into violations of the Foreign Corrupt Practices Act, the Department of Justice said in a July 22 press release. The violations arose from Microsoft's subsidiary in Hungary, Microsoft Magyarország Számítástechnikai Szolgáltató és Kereskedelmi Kft, which was involved in a “bid rigging and bribery scheme” related to the sale of Microsoft software licenses to government agencies, the press release said. The DOJ also released the non-prosecution agreement and statement of facts.
Technip FMC (TFMC) and its subsidiary Technip USA, reached a $296 million settlement with the Justice Department after being charged with violating the Foreign Corrupt Practices Act, according to a June 25 press release.
Walmart and its Brazilian subsidiary settled for $137 million after the Department of Justice said both violated the Foreign Corrupt Practices Act, according to a June 20 press release. The subsidiary, WMT Brasilia S.a.r.l, pleaded guilty to the charges.
A dual U.S.-Venezuela citizen pleaded guilty to violations of the Foreign Corrupt Practices Act after the Department of Justice said he bribed officials of Petroleos de Venezuela, Venezuela’s state-run oil company. Jose Manuel Gonzalez Testino, who controlled multiple U.S.-based companies, was charged with one count each of conspiracy to violate the FCPA, violating the FCPA and failing to report foreign bank accounts, the DOJ said in a May 29 press release.