Fourth Quarter 2018 FCPA Highlights
Vantage Drilling International (11/19/2018): The Houston based company agreed to pay $5 million to settle charges against its precursor, Vantage Drilling Company, for failing to develop an internal accounting controls system in regards to transactions with its former external director, biggest shareholder, and exclusive supplier of drilling assets and for failing to properly enact internal accounting controls relating to use of third-party marketing agents.
Vantage Drilling failed to devise a system of internal accounting controls with regard to Vantage’s transactions with a former outside director who was the largest shareholder in Vantage and its only supplier of drilling assets, the SEC said. The unnamed director is described in the order as a “Taiwanese shipping magnate.” What is most surprising is that Vantage had not even conducted basic levels of due diligence investigation of this key shareholder and director
Vantage had an ineffective anti-corruption compliance program when the violations occurred and didn’t conduct any due diligence on the director before “relying on him as its sole source of drilling equipment and appointing him to its board of directors,” the SEC said.
Because of the internal control failures, Vantage provided funds and reimbursements to the director who used the money to pay bribes to officials at Petrobras in connection with a 8-year, $1.8 billion drilling services contract.
Stryker Corporation (9/29/18): The medical device company, located in Michigan, agreed to pay a penalty of $7.8 million for inaccurate books and records and insufficient accounting controls.
Petroleo ⦁ Brasileiro⦁ S.A. (9/27/2018): This Brazil based oil and gas company agreed to pay a $7.8 million penalty in a global resolution resulting from a massive bid-rigging and bribery scheme.
Patricio ⦁ Contesse⦁ González (9/25/18): The Chilean-based chemical and mining company’s once-CEO, Sociedad Química y Minera de Chile S.A., agreed to pay $125,000 to settle charges that he violated the FCPA during his leadership.
United Technologies (9/12/18): The Connecticut company agreed to pay almost $14 million to resolve charges of unlawful payments used to facilitate sales of elevators and aircraft engines.
Joohyun⦁ Bahn (9/6/18): The New Jersey real estate broker agreed to settle charges in the amount of $225,000 for attempting to bribe a foreign official while brokering a high-rise commercial building sale on behalf of a private foreign issuer.