A company’s cooperation and remediation efforts recently helped it avoid prosecution for violations of the Foreign Corrupt Practices Act, although it will have to disgorge $1.2 million in profits from the violations.
According to a Department of Justice letter, a DOJ investigation found evidence that over about three years some of the company’s employees and agents paid nearly $5 million dollars to a third-party intermediary knowing the money would be used to bribe Egyptian government officials to obtain and retain lucrative contracts from a state-owned company. In exchange for the bribes the company secured about $143 million in contracts and earned about $32.7 million in profits.
However, the DOJ said it has declined prosecution of this matter based on a number of factors, including the company’s timely and voluntary self-disclosure of the misconduct, full and proactive cooperation, and timely remediation, including substantially improving its compliance program and internal controls. The DOJ also said that requiring disgorgement of more than $1.2 million “would substantially threaten the continued viability of the company.”
For more information on the FCPA and how to ensure your company’s compliance, please contact attorney Kristine Pirnia at (202) 730-4964 or via email.
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