Chamber Companies charged under the Foreign Corrupt
Practices Act
Johnson and Johnson – 2009 Institute for Legal Reform Board Member
On April 7th, 2011, the SEC charge Johnson and Johnson under FCPA for “since at
least 1998, J&J subsidiaries paid bribes to public administrators and doctors in
Greece, Poland and Romania to secure sales for its pharmaceutical, consumer
product and medical devices.” [FCPA News, 4/7/11]
Siemens AG – Former US Chamber of Commerce Board member
In December of 2008, Siemens AG and three of its subsidiaries paid a $450
million fine for violating the FCPA. “Most of the violations involved bribery to
get contracts. The secondary charges of falsifying books and records and
circumvention of internal controls often resulted from the company’s attempts
to conceal the bribes.” [FCPA News, 12/15/08]
IBM – US Chamber Board Member
In March of 2011, IBM reached a settled with the SEC by which they disgorged
$5.3 million, and paid prejudgment interest of $2.7 million, and a $2 million civil
penalty after the company admitted to “making improper cash payments to
government officials in South Korea and China, and giving gifts and paying travel
and entertainment expenses that violated the FCPA.” [The FCPA Blog, 3/18/11]
General Electric – 2009 ILR Board Member
In 2010, General Electric and 2 subsidiaries were charged for “involvement in a
$3.6 million kickback scheme with Iraqi government agencies to win contracts to
supply medical equipment and water purification equipment. The SEC alleges
that two GE subsidiaries — along with two other subsidiaries of public
companies that have since been acquired by GE — made illegal kickback
payments in the form of cash, computer equipment, medical supplies, and
services to the Iraqi Health Ministry or the Iraqi Oil Ministry in order to obtain
valuable contracts under the U.N. Oil for Food Program.” [SEC press release,
7/27/10]
Chevron – US Chamber Member/Donor - $1m between 2008-2010
In November of 2007, Chevron agreed to a $30 million settlement on charges of
corruption in the UN’s Iraq Food-For Oil program. Chevron agreed to pay a civil
penalty of $3,000,000, disgorge $25 million, and pay OFAC (Office of Foreign
Assets Control of the U.S. Department of the Treasury) a penalty of $2,000,000
for violating the sanctions against the former government of Iraq. [The FCPA
Blog, 11/14/07]
ACGO Corporation – US Chamber Board Member
In September of 2009, ACGO Corporation reached an agreement to pay “nearly
$20 million in criminal and civil penalties to resolve charges related to kickbacks
it paid under the U.N. oil for food program.” AGCO agreed to disgorge
$13,907,393 in profits and $2 million in pre-judgment interest. It also agreed to
pay a civil penalty of $2.4 million. [The FCPA Blog, 9/30/09]
Schnitzer Steel – US Chamber Board Member
In October 2006, Schnitzer Steel settled charges related to a former executive
vice president for the firm paying over $200,000 in cash bribes and other gifts to
managers of government-owned steel mills in China to induce them to purchase
scrap metal from Schnitzer. Schnitzer disgorged $7.7 million and paid $7.5
million in penalties to settle related criminal charges brought by the U.S.
Department of Justice. [The FCPA Blog, 8/7/07]
El Paso Corporation – US Chamber Member/Contributor - $60,000 in 2009
In February of 2007, El Paso Corporation “settled violations of the U.S. Foreign
Corrupt Practices Act related to illegal surcharges it paid to Iraqi officials under
the oil-for-food program. It disgorged $5,482,363 in profits and paid a civil
penalty of $2,250,000.” [The FCPA Blog, 10/1/07]