July 31, 2017
July was bookended by two significant FCPA settlements. As June came to a close, the U.S. Department of Justice resolved its investigation into the activities of the India subsidiary of Boston-based engineering/construction firm CDM Smith. The parent company had voluntarily informed the DOJ about the misbehavior—obtaining contracts by making illicit payments to officials at India’s state-owned highway management agency—and was only required to disgorge its profits from the contracts (approximately USD 4 million). Four weeks later, the Securities and Exchange Commission announced its own settlement with the Halliburton Company, resolving allegations related to the efforts made by a former company officer to steer business toward a well-connected local company in Angola (which also happened to be owned by a former Halliburton employee) to curry favor from the public official (a friend of the local company’s owner) responsible for approving Halliburton’s contracts. Halliburton agreed to disgorge the USD 14 million in profits it obtained through the tainted contracts (plus interest) and to pay a USD 14 million civil penalty, while the former Halliburton officer agreed to a civil penalty of USD 75,000. Outside the U.S., prosecutors in Geneva settled with Swiss company Addax Petroleum over allegations that its director-general and legal director had paid bribes to foreign officials in Nigeria. No criminal intent was established, but a penalty of approximately USD 32 million was nevertheless imposed on the company.
Visit the TRACE Compendium to view the complete entries on these cases, along with other updates from this month.