2016 doj and sec fcpa - davis polk & wardwell...2016 doj and sec fcpa resolution tracker target...

2016 DOJ and SEC FCPA Resolution Tracker

2018 | APRIL

2016 DOJ and SEC FCPA Resolution Tracker

TARGET ENFORCER RESOLUTIONALLEGED

FCPA VIOLATION

INDUSTRY GEOGRAPHY ALLEGATIONS

Q1

2016

SAP SE SEC $3.9M (no-admit, no-deny, cease & desist order)

Technology/Electronics Panama

Sold artificially discounted softwarethrough intermediaries to fund bribes fortechnology contracts

Ignacio Cueto Plaza (LAN Airlines)

SEC $75K (no-admit, no-deny, cease & desist order) Aerospace/Aviation Argentina Authorized sham consulting agreement

to enable bribes to union officials

SciClone Pharmaceuticals, Inc. SEC $12.8M (no-admit, no-deny, cease & desist order)

Pharmaceuticals/Healthcare China

Subsidiaries gave money and gifts to state health care professionals to increase sales

PTC Inc.PTC Shanghai PTC Hong Kong

Yu Kai Yuan

DOJ; SEC

SEC: $13.6M (cease & desist order)DOJ: $14.5M (NPA)

SEC: $0 (DPA)

Technology/Electronics China Provided travel, gifts, and entertainment

to officials

VimpelCom Ltd.

Unitel LLC (Uzbek Sub)DOJ; SEC

DOJ: $230.3M (DPA)SEC: $167.5M (permanent injunction)

DOJ: Pled guiltyTelecommunications Uzbekistan Paid bribes, some disguised as charity,

to obtain business

Qualcomm SEC $7.5M (no-admit, no-deny, cease & desist order) Telecommunications China Hired relatives and gave gifts to officials

at state-owned telecom companies

Olympus Latin America, Inc. DOJ $22.8M (DPA)Medical Equipment/ Pharmaceuticals/Healthcare

Argentina, Brazil, Bolivia, Colombia, Costa Rica, Mexico

Gave money, travel and free equipment to health officials

Nordion Inc.

Mikhail Gourevitch

SEC

$375K (no-admit, no-deny, cease & desist order)

$179K (no-admit, no-deny, cease & desist order)

Pharmaceuticals/Healthcare Russia Bribed officials to obtain drug approvals

Novartis AG SEC $25M (no-admit, no-deny, cease & desist order) Pharmaceuticals/

Healthcare China Subsidiaries paid bribes to increase drug sales

Abraham Jose Shiera Bastidas (Vertix Instrumentos; Emea Venezuela SA)

DOJ Pled guilty; sentencing scheduled for 8/23/2018 Natural Resources/Utilities/Energy Venezuela Paid bribes to state-owned energy

company officials

Biomet DOJ (DPA)(second 1-year extension to DPA entered in 2012)

Pharmaceuticals/Healthcare

Argentina, Brazil, China, Mexico

Paid bribes and kickbacks to doctors for medical device sales

Q2

2016

Las Vegas Sands Corp. SEC $9M (no-admit, no-deny, cease & desist order) Entertainment China, Macao Failed to properly authorize or document

payments to a consultant

Dmitrij Harder(Chestnut Consulting Group Inc., Chestnut Consulting Group Co.)

DOJ Pled guilty; 5 years in prisonFinance/Insurance/Commodities Trading

United Kingdom Paid bribes to get financing approved for clients and obtain other business

DPA = Deferred Prosecution Agreement NPA = Non-Prosecution Agreement = Bribery = Books/Records = Internal Controls Last Update: April 16, 2018

2016 DOJ and SEC FCPA Resolution Tracker

TARGET ENFORCER RESOLUTIONALLEGED

FCPA VIOLATION

INDUSTRY GEOGRAPHY ALLEGATIONS

Q2

2016

Akamai Technologies SEC $672K (NPA) Internet Services China Subsidiary provided gift cards, meals and entertainment to officials

Nortek SEC $322K (NPA) Manufacturing China Subsidiary paid bribes to reduce oversight and taxes/fees

Roberto Enrique Rincon Fernandez DOJ Pled guilty; sentencing scheduled for 8/23/2018 Natural Resources/Utilities/Energy Venezuela Paid bribes to state-owned energy

company officials

Analogic Corporation

DOJ; SEC

SEC: $11.5M (cease & desist order)

Medical Equipment

Ghana, Israel, Kazakhstan, Russia, Ukraine, Vietnam

Subsidiary made improper payments using falsified invoices

BK Medical ApS (Danish Sub) DOJ: $3.4M (NPA)

Lars Frost SEC: $20K (cease & desist order)

Q3

2016

Johnson Controls, Inc. SEC $14.4M (no-admit, no-deny, cease & desist order)

Industrials/Manufacturing/ Natural Resources/ Utilities/Energy/Shipping/Freight/Transportation

ChinaSubsidiary used fake vendors to pay bribes to employees of state-owned shipyards, ship owners and others

LATAM Airlines Group, S.A., f/k/a LAN Airlines, S.A. DOJ; SEC DOJ: $12.8M (DPA)

SEC: $9.4M (cease & desist order) Aerospace/Aviation Argentina, Chile

Used false consulting contract to bribe union officials to settle labor disputes

Key Energy Services, Inc. SEC $5M (no-admit, no-deny, cease & desist order) Natural Resources/Utilities/Energy Mexico

Subsidiary used consulting firm to make improper payments to state-owned oil company employee

AstraZeneca PLC SEC $5.5M (no-admit, no-deny, cease & desist order) Pharmaceuticals/Healthcare China, Russia

Subsidiaries made improper payments to increase sales and reduce or dismiss financial sanctions

Jun Ping Zhang (Hunan CareFx Information Technology, LLC/Harris Corporation)

SEC $46K (no-admit, no-deny, cease & desist order) Technology/Electronics/Telecommunications China

Used fake expense receipts to generate cash for gifts to officials at state-owned hospitals

Nu Skin Enterprises, Inc. SEC $766K (no-admit, no-deny, cease & desist order) Personal Care Products/ Cosmetics China

Subsidiary exchanged payment to charity for official to intervene in investigation

Anheuser-Busch InBev SEC $6M (no-admit, no-deny, cease & desist order) Food/Beverage India

Used third-party sales promoters to make improper payments to officials to obtain sales and increase production hours

DPA = Deferred Prosecution Agreement NPA = Non-Prosecution Agreement = Bribery = Books/Records = Internal Controls Last Update: April 16, 2018

2016 DOJ and SEC FCPA Resolution Tracker

TARGET ENFORCER RESOLUTIONALLEGED

FCPA VIOLATION

INDUSTRY GEOGRAPHY ALLEGATIONS

Q3

2016

Och-Ziff Capital Management Group DOJ; SEC DOJ: $213M (DPA)SEC: $199M (cease & desist order)

Finance/Investment Management

Chad, Democratic Republic of the Congo, Guinea, Libya, Niger, South Africa, Zimbabwe

Used intermediaries, agents and business partners to bribe officials

OZ Management DOJ: Pled guilty

Daniel S. Och SEC: $2.2M (no-admit, no-deny, cease & desist order)

Joel M. Frank SEC: Penalty TBD (no-admit, no-deny, cease & desist order)

NCH Corporation DOJ $335K (declination with disgorgement) Industrial Supply China Subsidiary bribed officials to increase sales

GlaxoSmithKline SEC $20M (no-admit, no-deny, cease & desist order)

Pharmaceuticals/Healthcare China

Subsidiary disguised improper payments to officials as legitimate expenses

Q4

2016

Embraer S.A. DOJ; SEC DOJ: $107M (DPA) SEC: $98M (disgorgement)

Aerospace/Aviation

Dominican Republic, India, Mozambique, Saudi Arabia

Bribed officials and falsified books and records in connection with aircraft sales

Victor Hugo Valdez Pinon / Douglas Ray

Kamta Ramnarine / Daniel Perez

DOJ

Pled guilty; $90.8K, 1 year 1 day prisonPled guilty; $590K, 18 months prison

Pled guilty; 3 years probationPled guilty; 3 years probation

Aerospace/Aviation Mexico Paid bribes to obtain aviation

contracts

JPMorgan Chase DOJ; SEC DOJ: $72M (NPA) SEC: $130.6M (cease & desist order)

Finance/Insurance /Commodities Trading

China, TaiwanGave jobs and internships to relatives and friends of government officials

Odebrecht S.A. DOJ Pled guilty; $93M Engineering/Construction

Angola, Argentina, Brazil, Colombia, Dominican Republic, Ecuador, Guatemala, Mexico, Mozambique, Panama, Peru, Venezuala

Used shell companies to bribe officials, politicians, and political parties

Braskem S.A. DOJ; SEC DOJ: Pled guilty; $94.9M SEC: $65M (disgorgement)

Natural Resources/Utilities/Energy

BrazilBribed officials at state-controlled petroleum company and hid payments

Teva Pharmaceuticals Industries Ltd.

Teva LLC

DOJ; SEC

DOJ: $283.2M (DPA) SEC: $236M (disgorgement)

DOJ: Pled guilty

Pharmaceuticals/Healthcare

Mexico, Russia, Ukraine

Bribed officials to increase sales and get drug registrations approved

General Cable Corporation

Karl J. Zimmer

DOJ; SEC

DOJ: $20.5M (NPA) SEC: $55.3M (cease & desist order)

SEC: $20K (no-admit, no-deny, cease & desist order)

Industrials/Manufacturing

Angola, Bangladesh, China, Egypt, Indonesia, Thailand

Subsidiaries used third parties to bribe officials

DPA = Deferred Prosecution Agreement NPA = Non-Prosecution Agreement = Bribery = Books/Records = Internal Controls Last Update: April 16, 2018

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