Samsung Heavy Industries agreed with the Justice Department to pay $75 million to settle FCPA charges. Under a three-year deferred prosecution agreement (DPA), Samsung agreed to filing of a criminal information in the Eastern District of Virginia charging the company with FCPA conspiracy. DPA Copy Here.
Over a six-year period, Samsung carried out a bribery scheme to pay millions of dollars to Petrobas in Brazil using third-party intermediaries and disguising bribery payments through various off-shore companies and bank accounts.
Under the terms of the DPA, Samsung will pay a $37.5 million fine and another $37.5 million either to the US government or to Brazilian authorities, so long as the payment is made prior to November 20, 2020. In a related proceeding, Samsung entered into related settlements with the Controladoria-Geral da União (CGU), Advogado-Geral da União (AGU) and Ministério Público Federal (MPF).
The DPA outlined DOJ’s application of the FCPA Corporate Leniency Program factors.
- Samsung did not voluntarily disclose the matter to the Justice Department;
- Samsung would have received full credit for its cooperation with the government investigation because it: (a) conducted a thorough internal investigation; (b) made regular factual presentations to the Fraud Section; (c) made employees available for interviews; and (d) produced relevant documents and translated the documents from foreign languages. But Samsung did not receive credit because of delays in meeting reasonable deadlines set by DOJ officials and in resolving the case with DOJ.
- Samsung provided all relevant information concerning individuals involved in the conduct.
- Samsung engaged in significant remediation to its compliance program by enhancing its compliance program by hiring additional compliance staff, implementing enhanced anti-corruption policies and whistleblower policies and procedures, and by mandating annual anti-corruption training for employees; and by enhancing its internal controls to require in-depth review of potential third-party representatives by compliance professionals.
- DOJ declined to require that Samsung retain an independent compliance monitor based on the relevant circumstances and Samsung’s agreement to submit an annual compliance report;
Based on these factors (and others not explained here), DOJ agreed to a penalty of $75 million based on a 20 percent reduction from the bottom of the applicable US Sentencing Guidelines range.
