The CEO of a Brazil-based petrochemical company pleaded guilty to DOJ bribery charges and other violations of the Foreign Corrupt Practices Act ("FCPA").
According to the indictment filed in the U.S. District Court for the Eastern District of New York, the individual served as CEO of a Brazil-based petrochemical company and diverted money from the company's funds into a slush fund that was used to pay bribes to Brazilian government officials. The DOJ alleged that the individual:
- paid bribes to two officials to retain, and obtain preferential pricing on, its contract with Brazil's state-owned and state-controlled oil company;
- falsified the company's books and records by recording payments to an offshore shell company as commissions for agents; and
- signed certifications submitted to the SEC falsely attesting that the individual had disclosed all fraud involving management who had control over financial reporting and that the company's annual reports did not contain any false statements.
The individual pleaded guilty to one count of conspiracy to violate the anti-bribery provisions of the FCPA and one count of conspiracy to violate the books and records provisions of the FCPA. The DOJ also charged the individual with one count of conspiracy to commit money laundering. The individual agreed to pay approximately $2.2 million in forfeiture.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.