Global Chemicals Company Settles FCPA Violations

A U.S.-based global chemicals company settled SEC charges for bribery and recordkeeping and internal accounting controls failures in violation of the Foreign Corrupt Practices Act ("FCPA").

The SEC determined that the company engaged in misconduct from 2009 to 2017 by utilizing agents who paid bribes to secure sales of refinery catalysts to both public and private-sector entities in Vietnam, India and Indonesia. The SEC concluded that the company's lack of oversight created an environment conducive to widespread misconduct. As a result, the SEC determined that the company violated Exchange Act Sections 13(b)(2)(B) and (A) ("Periodical and other reports") and Section 30A ("Prohibited foreign trade practices by issuers").

To settle the charges, the company consented to (i) cease and desist from any future violations, (ii) pay disgorgement of over $81.8 million and (iii) pay prejudgment interest exceeding $21.7 million.

Simultaneously, the DOJ entered into a non-prosecution agreement with the company, imposing a $99 million criminal fine and a forfeiture of approximately $98 million. The SEC said that $81.8 million of this forfeiture will be satisfied through the company's disgorgement payment.