Technology Firm Settles Bribery Charges Stemming from DOJ and SEC Investigations

A technology firm settled DOJ and SEC charges associated with bribing Brazilian and Algerian officials to win government contracts.

According to the DOJ's release, the firm engaged in a bribery scheme through sales agents to win a bidding contract in Brazil. In 2010 and 2014, the firm was alleged to have offered at least $4 million in bribes to a high-ranking Brazilian government official in connection with a contract bid for a state-owned entity. The DOJ stated that the firm ultimately won the contract, earning the firm approximately $105.5 million in profits. As part of the agreement with the DOJ, the firm entered into a three-year deferred prosecution agreement where it is additionally required to pay a criminal penalty of approximately $79 million, up to $39.6 million of which may be credited against amounts paid to authorities in Brazil pursuant to their investigation.

According to the SEC Order, the firm engaged in a bribery scheme through firm employees and agents of its Belgian subsidiary to obtain and win business with an Algerian state-owned entity. The firm allegedly paid more than $75,000 in bribes to an Algerian government official as a part of the bribery scheme. In its investigation, the SEC found that the firm failed to have sufficient internal accounting controls to mitigate against known corruption risks. As a result, the SEC determined that the firm committed violations of the Foreign Corrupt Practices Act ("FCPA"), including Exchange Act Section 30A ("Prohibited foreign trade practices by issuers"), Section 13(b)(2)(A) and Section 13(b)(2)(B) ("Periodical and other reports"). The firm agreed to (i) cease and desist and (ii) pay approximately $81,100,000 in disgorgement and prejudgment interest, up to approximately $38,700,000 of which can be offset by payments to Brazilian authorities pursuant to their investigation.