Marubeni Gets Hit Again for FCPA Violations - DOJ Says the Company Did Not Voluntarily Disclose the Conduct and Refused to Cooperate

more+
less-

In a courtroom in New Haven, Connecticut, on March 19, 2014, Marubeni Corporation (Marubeni), a storied Japanese trading company headquartered in Tokyo, pleaded guilty to an eight-count criminal information charging Marubeni with one count of conspiring to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) and seven counts of violating the FCPA. The FCPA violations arise from a bribery scheme involving Indonesian officials and a contract to build a major power plant in Indonesia. The criminal fine was $88 million, which was $25 million above the typical low end of the U.S. Sentencing Guideline range applied in many of these cases.

Marubeni has now become one of less than a handful of companies in history to be charged with FCPA violations on more than one occasion. Indeed, Marubeni entered into a Deferred Prosecution Agreement (DPA) with the Department of Justice (DOJ) in January 2012 to resolve an investigation into Marubeni’s involvement with the Bonny Island bribery scandal in Nigeria, which included a monetary penalty of $54.6 million. Moreover, and in some ways more importantly, Marubeni became one of the rare parent corporations to enter a guilty plea for violating the FCPA’s anti-bribery provisions, which carries with it the greater possibility of significant collateral consequences such as suspension and debarment.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Topics:  Bribery, Corruption, DOJ, FCPA, Power Plants

Published In: General Business Updates, Criminal Law Updates, International Trade Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Morrison & Foerster LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »