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Engineering / Construction
Boston, Massachusetts, United States
Nationality of Foreign Officials: India
Summary of Allegations:
Between 2011 and 2015, employees of CDM Smith and its India subsidiary allegedly obtained contracts by paying bribes (generally 2-4% of the contract price) to officials at India’s state-owned highway management agency. The bribes were paid through fraudulent subcontractors who provided no actual services. An additional USD 25,000 was allegedly paid to local officials in Goa in connection with a water project contract.
It is alleged that in order to cover up the bribery, accused officials of CDM Smith showed these expenses as "allowable business expenses" in their income tax returns.
Approximate Alleged Payments to Foreign Officials: USD 1.18 million
Business Advantage Allegedly Obtained: Approximately USD 4 million in net profits
Agencies: India: Central Bureau of Investigation
Results:
Year Resolved:
Compliance Monitor:
Ongoing: Yes
Details:
11 February 2018 - The CBI has commenced a corruption / bribery probe against CDM Smith's Indian subsidiary -- CDM Smith India Private Limited -- its executives, and various officials of the NHAI highway authority.
CBI officials have conducted searches at five CDM Smith offices located in Benglaru and Chennai and at the residence of the former finance director of CDM's Indian subsidiary, Gopakumar, and at the residences of other executives. Allegedly, Gopakumar was the key person that facilitated improper payments to subcontractors.
Agencies: United States: Department of Justice
Results: Declination, Disgorgement
Year Resolved: 2017
Compliance Monitor:
Ongoing: No
Details:
CDM Smith agreed to disgorge $4,037,138—the company's profit from the contracts at issue- in full by October 1, 2017. The company had already taken steps to enhance its compliance program, and had terminated all executives and employees involved in the misconduct.
DOJ closed its FCPA investigation into CDM Smith on June 21, 2017 and issued a declination letter. (DOJ letter)
Discovery Method: Voluntary Disclosure
Details:
CDM Smith made timely, voluntary disclosure to under the DOJ's "Pilot Program," conducted a thorough investigation, and cooperated fully with the investigation by the DOJ.
Country: