Harry Cassin Publisher and Editor

Andy Spalding Senior Editor

Jessica Tillipman Senior Editor

Richard L. Cassin Editor at Large

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

« Shruti Shah: Introducing the Coalition for Integrity’s S.W.A.M.P. Index | Main | SFO moves to seize Karimova assets »

Petrobras tops new top ten disgorgement list

Petrobras's $1.78 billion FCPA resolution last week included disgorgement of $933.5 million, the biggest ever ordered in an FCPA enforcement action.

The SEC allowed Petrobras to credit against the disgorgement the money it had already paid into a settlement fund for U.S. shareholder litigation.

If for some reason Petrobras hasn't disgorged that amount within a year through payments to the U.S. class action fund or otherwise, then Petrobras must pay the money directly to the SEC.

*     *     *

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.

*     *     *

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

1. Petrobras $933.5 million in 2018

2. Telia $457 million in 2017

3. VimpelCom $375 million in 2016

4.  Siemens $350 million in 2008

5.  Teva $236 million in 2016

6.  Och-Ziff $199 million in 2016

7.  KBR $177 million in 2009

8.  Alcoa $161 million in 2014

9.  Total S.A. $153 million in 2013

10.  JPMorgan Chase $130.5 million in 2016

Knocked off the top ten disgorgement list is Snamprogetti, which disgorged $125 million in 2010.

*     *     *

For comparison, here's our current list of the top ten FCPA enforcement actions.

Richard L. Cassin is the publisher and editor of the FCPA Blog.