DOJ Issues Record FCPA Fine
The Department of Justice (DOJ) made history yesterday when it issued a record-high fine for violations of the Foreign Corrupt Practices Act (FCPA). After a multi-year investigation, the DOJ found that Alstom, French energy and transportation giant, paid millions in bribes to public officials around the world to secure more than $4 billion in projects generating about $300 million in profits. As a result, the DOJ assessed a fine of $772 million. The amount represents the highest fine ever charged against one company in connection with the FCPA.
The plea agreement that Alstom negotiated with the DOJ states that the company failed to voluntarily disclose wrongdoings, cooperate with the proper authorities, and implement proper compliance policies. While Alstom’s violations were certainly exceptionally egregious, the massive fine demonstrates just how serious and costly FCPA investigations have become.
- DOJ Press Release: http://www.justice.gov/opa/pr/alstom-pleads-guilty-and-agrees-pay-772-million-criminal-penalty-resolve-foreign-bribery
- DOJ Press Conference Remarks: http://www.justice.gov/opa/speech/remarks-first-assistant-us-attorney-district-connecticut-michael-j-gustafson-press