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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

« Compliance and enforcement trends from the 2019 TRACE Forum | Main | Are auditors abdicating responsibility, or simply following the rules? »
Monday
Mar112019

With MTS in the new Top Ten, just one U.S. company remains

Russian telecom MTS joined our Top Ten list last week at number three. It knocked Och-Ziff off the list, and that means nine of the ten biggest FCPA cases of all time now involve non-U.S. companies.

The only U.S. company still among the top ten is KBR / Halliburton with its $579 million resolution in 2009.

MTS settled FCPA violations in Uzbekistan by agreeing to pay the DOJ and SEC a total of $850 million in penalties. Unlike most of the mega-resolutions since 2016 -- including Petrobras, Telia, VimpelCom, SocGen, and Keppel Offshore -- none of MTS' penalties are payable to non-U.S. enforcement agencies.

MTS -- formally known as Mobile TeleSystems Public Joint Stock Company -- will pay the SEC a penalty of $100 million for civil violations of the anti-bribery, books and records, and internal accounting controls provisions of the FCPA.

On the criminal side with the DOJ, MTS will pay a fine and forfeiture totaling $850 million. To avoid piling on, the DOJ said it will give MTS full credit for the $100 million SEC penalty, so MTS' full liability for the FCPA resolution is $850 million.

MTS is the first Russian company to appear on the FCPA Blog Top Ten list.

This is the third time the Top Ten list involves nine non-U.S. companies. The first time was in late 2011 and it happened again in late 2013.

*     *     *

Here are the current top ten FCPA enforcement actions of all time based on penalties and disgorgement assessed in the U.S. enforcement documents.*

1. Petróleo Brasileiro S.A. – Petrobras (Brazil): $1.78 billion in 2018.

2. Telia Company AB (Sweden): $965 million in 2017.

3. MTS (Russia): $850 million in 2019.

4.  Siemens (Germany): $800 million in 2008.

5.  VimpelCom (Holland): $795 million in 2016.

6. Alstom (France): $772 million in 2014.

7. Société Générale S.A. (France): $585 million in 2018.

8.  KBR / Halliburton (United States): $579 million in 2009.

9.  Teva Pharmaceutical (Israel): $519 million in 2016.

10. Keppel Offshore & Marine Ltd.(Singapore): $422 million in 2017.

Falling off the Top Ten list is Och-Ziff (United States) with its $412 million resolution in 2016.

* Odebrecht / Braskem appeared on the Top Ten list in late 2016 but were removed in April 2017 after the DOJ reduced their overall penalties based on "ability to pay."

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Richard L. Cassin is editor at large of the FCPA Blog.