EMBRAER SA SETTLES FCPA CASE FOR $205 MILLION
November 11, 2016
The U.S. Department of Justice (DOJ) and Brazilian aerospace firm Embraer SA recently agreed to a $205 million settlement concerning allegations that the company violated the Foreign Corrupt Practices Act (FCPA) by paying bribes to officials in three countries to and falsifying financial records.
The settlement ends claims that Embraer paid bribes through its U.S. subsidiary to secure contracts with the Dominican Air Force, and state-owned entities in Saudi Arabia and Mozambique and concealed questionable payments involving sales to the Indian military. The settlement includes a $107 million penalty imposed by the DOJ and more than $98 million disgorgement in profits to the U.S. Securities and Exchange Commission, which will be offset by up to $20 million in profits which Embraer will give to the Brazilian authorities.
The company received a lower penalty because of its cooperation with the DOJ, but it could have paid less if it had adequately disciplined a senior executive who knew about part of the alleged bribery.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com, 202-659-6622) or Drew Derco (dderco@eckertseamans.com, 202-659-6665).
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