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Thomas Fox Contributing Editor

Marc Alain Bohn Contributing Editor

Bill Waite Contributing Editor

Shruti J. Shah Contributing Editor

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FCPA Blog Daily News

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Tuesday
Feb232016

VimpelCom FCPA disgorgement is third biggest ever

VimpelCom's $397.6 million FCPA settlement last week included a disgorgement to the SEC that ranks third on our list of the biggest FCPA disgorgements of all time.

The company agreed to pay the SEC $167.5 million in disgorgement and pre-judgment interest.

Our list of the top ten FCPA disgorgements hadn't changed since December 2014, with Avon's enforcment action.

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 more than three-quarters of its FCPA-related enforcement actions.

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

1.  Siemens $350 million in 2008

2.  KBR $177 million in 2009

3.  VimpelCom $167.5 million in 2016

4.  Alcoa $161 million in 2014

5.  Total S.A. $153 million in 2013

6.  Snamprogetti $125 million in 2010

7.  Technip $98 million in 2010

8.  Daimler $91.4 million in 2010

9.  Avon $67.35 million in 2014

10. Pfizer $45.2 million in 2012

The VimpelCom disgorgement knocked Alcatel-Lucent's $45 million payment in 2010 off the list.

*     *     *

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. He can be contacted here.

Reader Comments (1)

What was disclosed when Vimpelcom, a Russian-owned company operating throughout the former Soviet Union, listed on the NYSE and NASDAQ?
February 23, 2016 | Unregistered CommenterSally March
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