Marubeni Pleads Guilty to FCPA Charges

Marubeni Pleads Guilty to FCPA Charges Roll of dollar bills in evidence bag

Marubeni Corp., a Japanese commodity-trading firm, has pleaded guilty to eight Foreign Corrupt Practices Act charges related to the company and its French partner, Alstom SA, in connection with an electricity contract in Indonesia, the FCPA Blog reported Wednesday.

Marubeni pleaded guilty to one count of conspiracy to violate the FCPA and seven FCPA offenses, and agreed to pay a criminal fine of $88 million, the FCPA Blog reported, citing a Department of Justice announcement.The company is scheduled to be sentenced in Connecticut on May 15.

This is the second FCPA run-in for Marubeni, the FCPA Blog explained. Two years ago, it paid close to a $55 million criminal penalty relating to FCPA charges on conspiracy to violate the act, and aiding and abetting for the role it played in a joint venture in Nigeria.

The DOJ said Wednesday that Marubeni and Alstom, a power-equipment maker, bribed a member of the Indonesian Parliament, and officials at the state-owned electricity company in the country.

Bribery payments were disguised as consulting charges, but e-mails between Marubeni and Alstom employees revealed that these employees were saying that officials needed to be given adequate “rewards” and not just “pocket money.”

Four Alstom executives have already been charged in the case, and two have pleaded guilty. Three of the executives were employees of Alstom’s Connecticut-based subsidiary.

According to the FCPA Blog, Marubeni said Wednesday it has “undertaken extensive efforts to enhance its anti-corruption compliance program, and believes its current program is robust and effective.”

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