Firms to pay $3.5B in largest foreign bribery scheme in history
A global construction conglomerate and a Brazilian petrochemical chemical have pleaded guilty in what federal authorities are calling the largest foreign bribery case in history – agreeing to shell out at least $3.5 billion in penalties.
Construction syndicate Odebrecht S.A. and oil company Braskem S.A. admitted in Brooklyn federal court Wednesday to taking part in massive bribery and bid-rigging schemes since 2001, slipping around $788 million to government officials, representatives, and political parties in various countries in order to win their business.
The bribes were paid through a “shadow budget,” authorities said, which was funneled through a dizzying network of off-book transactions, shell companies, and off-shore bank accounts to unspecified corrupt officials around the world.
The transactions where sometimes completed via cash-stuffed suitcases, authorities said.
Braskem, whose American Depositary Receipts are traded publicly on the New York Stock exchange, additionally pleaded guilty to a separate count of conspiracy to violate the anti-bribery provisions of the FCPA
Braskem has also settled with the U.S. Securities and Exchange Commission, the Ministerio Publico Federal in Brazil, and the Office of the Attorney General in Switzerland.
Odebrecht has also agreed to settle with the Ministerio Publico Federal in Brazil and the Office of the Attorney General in Switzerland.
“In an attempt to conceal their crimes, the defendants used the global financial system – including the banking system in the United States – to disguise the source and disbursement of the bribe payments,” said U.S. Attorney Robert Capers.
“The message sent by this prosecution is that the United States, working with law enforcement partners abroad, will not hesitate to hold responsible those corporations and individuals who seek to enrich themselves through the corruption of the legitimate functions of government, no matter how sophisticated the scheme,” Capers concluded.