FCPA Scorecard Blog
LBI Enters Into DPA and Former Executives Plead Guilty to Resolve DOJ FCPA Investigation
On July 17, the DOJ announced that Louis Berger International Inc. ("LBI") had agreed to enter into a Deferred Prosecution Agreement to resolve the DOJ's FCPA investigation into the New Jersey-based construction management company's operations in India, Indonesia, Vietnam, and Kuwait. LBI also agreed to pay a $17.1 criminal penalty. LBI admitted that it bribed foreign officials to secure government construction management contracts around the world. According to the company's admissions regarding a conspiracy to violate the anti-bribery provisions of the FCPA, from 1998 to 2010, LBI concealed $3.9 million in corrupt payments through various methods, including (i) using inflated and fictitious invoices that were used for the payments of bribes through intermediaries, and (ii) paying fictitious "commitment fees," "counterpart per diems," "marketing fees," and "field operation expenses." Under the terms of the DPA, the DOJ will defer criminal prosecution of LBI for a period of three years and the company will retain an independent compliance monitor for three years. In addition, Richard Hirsch of the Philippines and James McClung of the United Arab Emirates, both former executives of LBI, each pleaded guilty to one count of conspiracy to violate the FCPA and one substantive count of violating the FCPA. They are scheduled to be sentenced on Nov. 5, 2015. Continuing its recent trend, the DOJ emphasized the company's self-disclosure and cooperation, as well as remediation efforts.