Nationality of Foreign Officials: Brazil
Summary of Allegations:
Between 2007 and 2013, Samsung Heavy Industries Company Ltd (“Samsung Heavy Industries”), a South Korea company, allegedly conspired with intermediaries to bribe officials at Petrobras to secure a contract worth US$636,040,000 to sell an offshore oil drillship to a Houston-based drilling company.
Samsung Heavy Industries paid two intermediaries US$20 million in total, knowing that they would deliver part of the payment to Petrobras officials to induce a decision to charter the ship, which was understood to be necessary in order for the sale to go through. Samsung used its offices in the U.S. to facilitate the bribery scheme.
Approximate Alleged Payments to Foreign Officials: A portion of US$ 20 million
Business Advantage Allegedly Obtained: A contract worth US$636,040,000
Agencies: Brazil: Advogado-Geral da União (AGU), Brazil: Controladoria-Geral da União (CGU), Brazil: Public Prosecutor's Office / Ministerio Publico Federal (MPF) , United States: Department of Justice
Results: Deferred Prosecution Agreement, Leniency Agreement, Memorandum of Understanding
Year Resolved: 2019
According to the DOJ press release on November 22, 2019, Samsung Heavy Industries was charged with one count of conspiracy to violate the FCPA’s anti-bribery provisions, and reached a three-year deferred prosecution agreement with the DOJ. It agreed to pay a criminal penalty totaling US$75,481,600 to the DOJ, the Controladoria-Geral da União (CGU), the Advogado-Geral da União (AGU), and the Ministério Público Federal (MPF).
Samsung Heavy Industries signed a memorandum of understanding with the CGU, the AGU, and a leniency agreement with the MPF.
Discovery Method: Unspecified