SEC Charges Real Estate Broker With FCPA Violations
Joohyun Bahn, a New Jersey real estate broker for Colliers International, attempted to bribe a foreign official in Vietnam to secure a commission on the sale of Landmark 72, but the bribe was stolen by an accomplice, leading to falsified documents, fraudulent revenue recording, and a $225,000 disgorgement penalty satisfied by prior criminal forfeiture.
Joohyun Bahn violated the FCPA’s anti-bribery, books and records, and internal controls provisions by attempting to bribe a foreign official in Vietnam through a $225,000 payment to an accomplice who kept the money and misled him. He fabricated emails, forged documents, lied to Colliers executives, and falsely recorded $225,000 in unrealized commission revenue, despite no buyer commitment. The SEC ordered him to pay $225,000 in disgorgement, which was satisfied by his September 2018 criminal forfeiture and restitution in U.S. v. Bahn.
Joohyun Bahn, a New Jersey real estate broker acting on behalf of Colliers International, attempted to bribe a foreign official in Vietnam to secure a commission on the sale of Landmark 72 by paying $225,000 to an accomplice who falsely claimed access to the official but instead kept the funds, leaving the official completely unaware. Bahn circumvented Colliers’ internal accounting controls, fabricated email correspondence, created false documents, and deceived company executives into believing a buyer had committed to the purchase, enabling Colliers to improperly record $225,000 in commission revenue it would never receive. The SEC found these actions constituted clear violations of the FCPA’s anti-bribery, books and records, and internal controls provisions. Bahn was criminally convicted in September 2018 in U.S. v. Bahn (S.D.N.Y.), where he was ordered to forfeit and pay restitution, satisfying the SEC’s $225,000 disgorgement penalty. The SEC characterized his conduct as an 'egregious bribe scheme' involving a deliberate web of lies and fraud. The investigation was led by the SEC’s FCPA Unit with critical assistance from the Department of Justice’s Fraud Section, the U.S. Attorney’s Office for the Southern District of New York, and the FBI.
Exhibits & Attached Documents (1)
Extracted insights
- $225K $225,000 $100K–$1M
- company colliers international group, inc.
- person fictitious email messages
- person joohyun bahn
- person robert i. dodge
- agency sec investigation of joohyun bahn
- agency Securities and Exchange Commission
- Joohyun Bahn attempted to bribe Foreign Official of Middle East Country
- Joohyun Bahn acted as broker for Colliers International Group, Inc.
- Joohyun Bahn attempted to broker sale of Landmark 72, High Rise Commercial Building in Vietnam
- Joohyun Bahn circumvented Colliers' Internal Accounting Controls
- Joohyun Bahn fabricated Documents
- Joohyun Bahn created Fictitious Email Messages
- Joohyun Bahn falsely represented That a Buyer Had Committed to Acquire the Building
- SEC announced settled FCPA charges against Joohyun Bahn
- Joohyun Bahn violated FCPA's Antibribery Provisions
- Joohyun Bahn agreed to pay $225,000 in Disgorgement
- Joohyun Bahn sentenced on September 6, 2018
- United States v. Bahn case number Crim. No. 16 CR 00831-ER-1 (S.D.N.Y. 2016)
- Paul W. Sharratt, David Kagan-Kans, Maria Boodoo conducted SEC investigation Joohyun Bahn FCPA Case
- Robert I. Dodge supervised SEC Investigation of Joohyun Bahn
The Securities and Exchange Commission today announced settled FCPA charges against a New Jersey real estate broker arising out of his attempt to bribe a foreign official while acting as a broker for Colliers International Group, Inc. According to the SEC’s order, Joohyun Bahn attempted to bribe a foreign official of a country in the Middle East as part of an effort to broker the sale of Landmark 72, a high rise commercial building in Vietnam, on behalf of Colliers. The SEC’s order found that Bahn gave the bribe to an accomplice, expecting him to pass it along to the official. But the accomplice, who had misrepresented the official’s involvement in the scheme, kept the money for himself, and the official was unaware of the attempted bribe. The SEC’s order also found that Bahn circumvented Colliers’ internal accounting controls, fabricated documents, created fictitious email messages, and lied to Colliers executives. Bahn was also found to have falsely represented that a buyer had committed to acquire the building, thereby causing Colliers to improperly record commission revenue that it would never receive. “Although the fact pattern here is atypical, the underlying violations are straightforward. Bahn engaged in an egregious bribe scheme that involved a web of lies and false documents as he attempted to bribe a foreign official in order to make a sale. ” said Charles Cain, Chief of the SEC Enforcement Division’s FCPA Unit. The SEC’s order found that Bahn violated the FCPA’s antibribery provisions, caused violations of the Act’s books and records provisions, intentionally circumvented Colliers’ internal accounting controls, and falsified its corporate books and records. Bahn has agreed to pay $225,000 in disgorgement, which was deemed satisfied by the forfeiture and restitution ordered at his September 6, 2018 sentencing in a related criminal proceeding, United States v. Bahn, Crim. No. 16 CR 00831-ER-1 (S.D.N.Y. 2016). The SEC’s investigation was conducted by Paul W. Sharratt, David Kagan-Kans, and Maria Boodoo and supervised by Robert I. Dodge. The SEC appreciates the assistance of the Justice Department’s Fraud Section, the United States Attorney’s Office for the Southern District of New York, and the Federal Bureau of Investigation.
The Securities and Exchange Commission today announced settled FCPA charges against a New Jersey real estate broker arising out of his attempt to bribe a foreign official while acting as a broker for Colliers International Group, Inc. According to the SEC’s order, Joohyun Bahn attempted to bribe a foreign official of a country in the Middle East as part of an effort to broker the sale of Landmark 72, a high rise commercial building in Vietnam, on behalf of Colliers. The SEC’s order found that Bahn gave the bribe to an accomplice, expecting him to pass it along to the official. But the accomplice, who had misrepresented the official’s involvement in the scheme, kept the money for himself, and the official was unaware of the attempted bribe. The SEC’s order also found that Bahn circumvented Colliers’ internal accounting controls, fabricated documents, created fictitious email messages, and lied to Colliers executives. Bahn was also found to have falsely represented that a buyer had committed to acquire the building, thereby causing Colliers to improperly record commission revenue that it would never receive. “Although the fact pattern here is atypical, the underlying violations are straightforward. Bahn engaged in an egregious bribe scheme that involved a web of lies and false documents as he attempted to bribe a foreign official in order to make a sale. ” said Charles Cain, Chief of the SEC Enforcement Division’s FCPA Unit. The SEC’s order found that Bahn violated the FCPA’s antibribery provisions, caused violations of the Act’s books and records provisions, intentionally circumvented Colliers’ internal accounting controls, and falsified its corporate books and records. Bahn has agreed to pay $225,000 in disgorgement, which was deemed satisfied by the forfeiture and restitution ordered at his September 6, 2018 sentencing in a related criminal proceeding, United States v. Bahn, Crim. No. 16 CR 00831-ER-1 (S.D.N.Y. 2016). The SEC’s investigation was conducted by Paul W. Sharratt, David Kagan-Kans, and Maria Boodoo and supervised by Robert I. Dodge. The SEC appreciates the assistance of the Justice Department’s Fraud Section, the United States Attorney’s Office for the Southern District of New York, and the Federal Bureau of Investigation.