SNC-Lavalin unit pleads guilty to fraud charge, to pay $280-million fine

SNC-Lavalin unit pleads guilty to fraud charge, to pay $280-million fine https://www.theglobeandmail.com/business/article‐snc‐lavalinreaches‐agreement‐to‐plead‐guilty‐to‐charges‐of‐corruption/ (December 18, 2019)

  • A unit of SNC-Lavalin Group Inc. has pleaded guilty to fraud, ending a legal drama that had engulfed the engineering company and the Trudeau government.
  • The Canadian engineering giant and prosecutors on Wednesday unveiled a deal in which the company's construction division pleaded guilty to a single charge of fraud related to activities in Libya. It will pay a $280-million fine and receive a three-year probation order. A more potentially damaging charge of bribery under the Corruption of Foreign Public Officials Act was dropped.

SNC-Lavalin unit pleads guilty to fraud charge, to pay $280-million fine

  • Legal observers noted the settlement's effect is likely similar to what a DPA would have achieved: A hefty fine, a statement of guilt and monitoring of the company for a prescribed period.
  • "One could say it's a DPA through the back door," said Kenneth Jull, who specializes in corporate compliance.

SNC‐Lavalin settles Libya charges, pleads guilty to single count of fraud THE CANADIAN PRESS Dec. 18, 2019 5:00 p.m.

  • One of the biggest risks faced by SNCLavalin in the event of a conviction on corruption charges involving foreign officials was its ability to bid for construction projects in Canada and abroad. Under federal law, a bribery offence could result in a bidding ban for federal contracts for up to 10 years. It could also prompt a ban on bidding for projects backed by the World Bank.

SNC‐Lavalin settles Libya charges, pleads guilty to single count of fraud THE CANADIAN PRESS Dec. 18, 2019 5:00 p.m.

  • While fraud committed against the Canadian government is covered under the public works department's integrity regime —and could thus trigger a ban — a fraud offence connected to a foreign government is not, said Kenneth Jull, an expert in financial crimes and corporate compliance at Gardiner Roberts law firm in Toronto.

SNC‐Lavalin settles Libya charges, pleads guilty to single count of fraud THE CANADIAN PRESS Dec. 18, 2019 5:00 p.m.

  • "It's very clever. You could say it's almost like a DPA through the back door," said Jull, who has endorsed deferred prosecution agreements (DPA) —a type of plea deal that steers clear of admissions of guilt —as a way to avoid punishing innocent employees for C-suite offences.

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