SEC v. Braskem, S.A., No. LR-23705, District of Columbia (Dec. 21, 2016) — Press Release
raw: Braskem, S.A.
Braskem, S.A., No. 1:16-cv-02488 (Dec. 21, 2016)
Braskem S.A., a Brazil-based petrochemical manufacturer, agreed to pay $957 million to settle charges of violating the Foreign Corrupt Practices Act by creating false books and records to conceal millions of dollars in bribes paid to Brazilian government officials.
Braskem S.A. was accused of violating the Foreign Corrupt Practices Act by creating false books and records to conceal approximately $325 million in bribes paid to Brazilian government officials. The company agreed to pay $957 million in total, including $325 million in disgorgement and $632 million in criminal penalties and fines. Braskem consented to a court order requiring the company to pay disgorgement, retain an independent corporate monitor for three years, and permanently enjoining the company from future FCPA violations.
Braskem S.A., a Brazil-based petrochemical manufacturer, was charged by the U.S. Securities and Exchange Commission (SEC) with violating the Foreign Corrupt Practices Act (FCPA) by creating false books and records to conceal millions of dollars in bribes paid to Brazilian government officials. The alleged fraud involved approximately $325 million in profits through bribes paid to officials at Brazil's state-controlled petroleum company, legislators, and political party officials. In a global settlement with the SEC, U.S. Department of Justice, and authorities in Brazil and Switzerland, Braskem agreed to pay $957 million total—$325 million in disgorgement and over $632 million in criminal penalties and fines. The company consented to a court order permanently enjoining it from future FCPA violations, requiring retention of an independent corporate monitor for at least three years, and admitting to violations of Sections 30A and 13(b)(2)(A) and (B) of the Securities Exchange Act. The SEC's investigation was conducted by the FCPA Unit with assistance from other agencies. Braskem's settlement is a result of its cooperation with the SEC's investigation and its agreement to implement internal controls to prevent future FCPA violations.
Exhibits & Attached Documents (1)
Extracted insights
- $957.00M $957 million $100M–$1B
- $632.00M $632 million $100M–$1B
- $325.00M $325 million $100M–$1B
- $260.00M $260 million $100M–$1B
- $65.00M $65 million $10M–$100M
- company Braskem S.A.
- agency Brazilian Federal Police
- agency Brazilian Federal Prosecution Service
- person David S. Johnson
- agency Department of Justice
- person Ernesto Palacios
- agency Federal Bureau of Investigation
- person Fernando Torres
- person Kara Brockmeyer
- agency Office Of The Attorney General In Switzerland
- agency Securities and Exchange Commission
- person Thierry Olivier Desmet
- SEC announced a Brazilian-based petrochemical manufacturer whose stock trades in the U.S. markets has agreed to settle charges that it created false books and records to conceal millions of dollars in illicit bribes paid to Brazilian government officials to win or retain business
- Braskem, S.A. agreed to settle charges that it created false books and records to conceal millions of dollars in illicit bribes paid to Brazilian government officials to win or retain business
- SEC charged Braskem, S.A. with FCPA violations
- Braskem, S.A. created false books and records to conceal millions of dollars in illicit bribes paid to Brazilian government officials to win or retain business
- SEC charged Braskem, S.A. with FCPA violations
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23705 / December 21, 2016 Securities and Exchange Commission v. Braskem, S.A., Civil Action No. 1:16-cv-02488 (D.C. filed December 21, 2016) SEC Charges Brazil-Based Petrochemical Company with FCPA Violations The Securities and Exchange Commission today announced that a Brazilian-based petrochemical manufacturer whose stock trades in the U.S. markets has agreed to settle charges that it created false books and records to conceal millions of dollars in illicit bribes paid to Brazilian government officials to win or retain business. In a global settlement with the SEC, U.S. Department of Justice, and authorities in Brazil and Switzerland, Braskem S.A. agreed to pay $957 million. The SEC's complaint alleges that Braskem made approximately $325 million in profits through bribes paid through intermediaries and off-book accounts managed by a private company that was Braskem's largest shareholder. Bribes were paid to a government official at Brazil's state-controlled petroleum company as well as Brazilian legislators and political party officials. Braskem agreed to pay $325 million in disgorgement, including $65 million to the SEC and $260 million to Brazilian authorities. Braskem agreed to pay more than $632 million in criminal penalties and fines. The company must retain an independent corporate monitor for at least three years. The SEC's complaint was filed in U.S. District Court for the District of Columbia. Braskem consented to the entry of a court order ordering the company to pay disgorgement and retain an independent monitor for three years, and permanently enjoining the company from future violations of Sections 30A, 13(b)(2)(A), and 13(b)(2)(B) of the Securities Exchange Act of 1934. The SEC's investigation is continuing. It is being conducted by Ernesto Palacios and Thierry Olivier Desmet of the FCPA Unit with assistance from David S. Johnson and Fernando Torres, and supervised by Kara Brockmeyer, chief of the FCPA Unit. The SEC appreciates the assistance of the Department of Justice Criminal Division's Fraud Section, the Federal Bureau of Investigation, the Brazilian Federal Prosecution Service, the Brazilian Federal Police, and the Office of the Attorney General in Switzerland. # # # SEC Complaint
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23705 / December 21, 2016 Securities and Exchange Commission v. Braskem, S.A., Civil Action No. 1:16-cv-02488 (D.C. filed December 21, 2016) SEC Charges Brazil-Based Petrochemical Company with FCPA Violations The Securities and Exchange Commission today announced that a Brazilian-based petrochemical manufacturer whose stock trades in the U.S. markets has agreed to settle charges that it created false books and records to conceal millions of dollars in illicit bribes paid to Brazilian government officials to win or retain business. In a global settlement with the SEC, U.S. Department of Justice, and authorities in Brazil and Switzerland, Braskem S.A. agreed to pay $957 million. The SEC's complaint alleges that Braskem made approximately $325 million in profits through bribes paid through intermediaries and off-book accounts managed by a private company that was Braskem's largest shareholder. Bribes were paid to a government official at Brazil's state-controlled petroleum company as well as Brazilian legislators and political party officials. Braskem agreed to pay $325 million in disgorgement, including $65 million to the SEC and $260 million to Brazilian authorities. Braskem agreed to pay more than $632 million in criminal penalties and fines. The company must retain an independent corporate monitor for at least three years. The SEC's complaint was filed in U.S. District Court for the District of Columbia. Braskem consented to the entry of a court order ordering the company to pay disgorgement and retain an independent monitor for three years, and permanently enjoining the company from future violations of Sections 30A, 13(b)(2)(A), and 13(b)(2)(B) of the Securities Exchange Act of 1934. The SEC's investigation is continuing. It is being conducted by Ernesto Palacios and Thierry Olivier Desmet of the FCPA Unit with assistance from David S. Johnson and Fernando Torres, and supervised by Kara Brockmeyer, chief of the FCPA Unit. The SEC appreciates the assistance of the Department of Justice Criminal Division's Fraud Section, the Federal Bureau of Investigation, the Brazilian Federal Prosecution Service, the Brazilian Federal Police, and the Office of the Attorney General in Switzerland. # # # SEC Complaint