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Richard L. Cassin Publisher and Editor

Andy Spalding Senior Editor

Jessica Tillipman Senior Editor

Elizabeth K. Spahn Editor Emeritus

Cody Worthington Contributing Editor

Julie DiMauro Contributing Editor

Thomas Fox Contributing Editor

Marc Alain Bohn Contributing Editor

Bill Waite Contributing Editor

Shruti J. Shah Contributing Editor

Russell A. Stamets Contributing Editor

Richard Bistrong Contributing Editor 

Eric Carlson Contributing Editor

Bill Steinman Contributing Editor

Aarti Maharaj Contributing Editor


FCPA Blog Daily News

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Wednesday
Nov232016

JPMorgan lands on the FCPA Top Ten Disgorgement List

Last week's $264 million enforcement action against JPMorgan Chase included disgorgement to the SEC of $130.5 million -- the seventh biggest FCPA disgorgement of all time.

The SEC said $105.5 million was disgorgement and $25 million was pre-judgment interest.

Our disgorgement top ten list is always based on disgorgement plus interest.

JPMorgan knocked Embraer off the top ten disgorgement list. Embraer disgorged $79.5 million to the SEC in October.

*     *     *

Disgorgement, according to Contributing Editor Marc Alain Bohn, is a remedy authorized by the Securities Exchange Act of 1934 that's "used to deprive wrong-doers of their ill-gotten gains and deter violations of federal securities law."

Disgorgement first appeared in an FCPA enforcement action in 2004 when ABB Ltd disgorged $5.9 million to resolve books and records and internal controls offenses.

Since then the SEC has used disgorgement in most of its FCPA-related enforcement actions.

The DOJ's Pilot Program introduced in April this year requires companies to disgorge profits to be eligible for a declination.

So far under the Pilot Program, three public companies (issuers) have disgorged profits to the SEC and two privately held companies have disgorged profits to the DOJ.

None of the Pilot Program disgorgements have landed on the top ten disgorgement list.

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Here are the current top ten FCPA-related corporate disgorgements. All amounts also include pre-judgment interest:

1.  Siemens $350 million in 2008

2.  Och-Ziff $199 million in 2016

3.  KBR $177 million in 2009

4.  VimpelCom $167.5 million in 2016

5.  Alcoa $161 million in 2014

6.  Total S.A. $153 million in 2013

7.  JPMorgan Chase $130.5 million in 2016

8.  Snamprogetti $125 million in 2010

9.  Technip $98 million in 2010

10. Daimler $91.4 million in 2010

*     *     *

For comparison, here's our current list of the top ten FCPA enforcement actions.
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Richard L. Cassin is the publisher and editor of the FCPA Blog.