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On December 21, Brazilian officials charged twelve individuals with corruption-related offenses in connection with a probe into the relationship between Petrobras and Dutch oilfield company SBM Offshore N.V. Those charged include several former SBM Offshore executives, former SBM Offshore sales agents, and several former Petrobras executives. News reports state that the charges center on $46 million in allegedly corrupt payments made between 1998 and 2012. On December 17, SBM Offshore issued a statement that referred to ongoing discussions with Brazils Comptroller Generals Office and Attorney Generals Office to reach a settlement agreement and to secure disclosure of information relevant to the ongoing investigation into Petrobras. Brazils actions follow SBM Offshores prior settlement with Dutch authorities over allegations that it bribed officials in Brazil, Angola, and Equitorial Guinea; SBM Offshore agreed to pay the Dutch Public Prosecutors Office $240 million as part of the settlement. The company also had announced the conclusion of the DOJs investigation into the matters resolved with the Dutch. Previous FCPA Scorecard coverage of SBM Offshore settlement and the Petrobas investigation can be found here and here.
On August 4, Vantage Drilling Company, an international offshore drilling contractor, acknowledged that an overseas agent had entered into plea discussions with Brazilian authorities and provided evidence in the ongoing corruption investigation focused on Petrobras. Vantage acknowledged that the agent had purportedly provided evidence related to a former director of Vantage and Petrobras. The company disclosed that it had opened an internal investigation and self-reported the matter to the DOJ and the SEC. The Brazilian corruption investigations into Petrobras and its affiliates and counterparties continue to expand with no end in sight, and the expected related U.S. investigations are beginning to be disclosed.
On June 10, Eletrobras, Brazil's state-run power company, announced that it had hired Hogan Lovells to investigate potential violations of the FCPA and other anti-corruption laws and corporate policies. The focus of the investigation will be "projects in which Eletrobras Companies take part in a corporate form or as minority shareholder, through special purpose entities." According to an earlier Eletrobras filing, the investigation was triggered by testimony taken in conjunction with the Brazilian government's ongoing investigation of corruption allegations against Petrobras, dubbed "Operation Car Wash." That testimony alleged that the CEO of an Eletrobras subsidiary received illicit payments from a consortium of companies bidding for the Angra 3 power plant project.
SBM Offshore Settles Corruption Investigation with Dutch and U.S. Authorities as Investigation Widens in Brazil
On November 12, Dutch oilfield company SBM Offshore N.V. announced that it had agreed to pay $240 million to the Dutch Public Prosecutor's Office to resolve an investigation into allegedly corrupt payments made to win contracts in several countries around the world. SBM also stated that the U.S. Department of Justice had simultaneously closed its investigation into the same matter, but news reports indicated that Brazilian and U.S. authorities were investigating payments made by SBM to Petrobras, the Brazilian state-owned oil company. The investigation in Brazil is part of a widening investigation into various allegations of corruption involving Petrobras, which has portrayed itself as a victim rather than perpetrator of misconduct. As to SBM Offshore, the Department of Justice's apparent willingness to accept the company's resolution with Dutch authorities is an encouraging indication that U.S. authorities are increasingly cognizant of the need to avoid imposing "double jeopardy" on multinationals. Moreover, while the Netherlands were termed as having "little or no enforcement" in Transparency International's recent "Exporting Corruption -- Progress Report 2014: Assessing Enforcement of the OECD Convention on Combating Foreign Bribery," this action seems certain to change perceptions about Dutch anti-corruption enforcement activity.
- Steven R. vonBerg to discuss "Non-QM market overview and the impact & key details of the sunrise of seasoned non-QM/extension of the patch" at the IMN Non-QM Virtual Conference
- Buckley Webcast: Looking ahead — Tighter scrutiny of deposit and payment practices
- Jeffrey P. Naimon to discuss "What have you bought non-QM post-Covid?" at the IMN Non-QM Virtual Conference
- Garylene D. Javier to moderate "Innovation in an evolving privacy landscape" at the American Bar Association Business Law Section Consumer Financial Services Committee Winter Meeting