Brazilian Company Pleads Guilty, Fined for FCPA Violations
A Brazilian investment company was fined more than $256 million after pleading guilty to paying millions of dollars in bribes to government officials for contracts, the Justice Department said Oct. 14. J&F Investimentos S.A. pleaded guilty to conspiracy to violate the Foreign Corrupt Practices Act when it worked with others to bribe “high-level” Brazilian officials, including an executive at Banco Nacional de Desenvolvimento Economico e Social (BNDES), Brazil’s state-owned bank.
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Between 2005 and 2014, J&F helped pay $148 million in bribes in exchange for “hundreds of millions of dollars in financing” from BNDES. J&F also paid more than $4.6 million in bribes to an executive at Fundacao Petrobras de Seguridade Social, Brazil's state-owned pension fund, and about $25 million to a government official in Brazil's legislative branch. J&F executives used New York bank accounts to make the illegal payments and bought a Manhattan apartment as a bribe.
The Justice Department said J&F did not voluntarily disclose the violations. As part of a cooperation plea agreement with the U.S. government, J&F will cooperate with the U.S. on future criminal investigations concerning the company and report on the “implementation of its enhanced compliance program.” Justice also said it will credit up to 50% of its fine against J&F to fines the company owes Brazilian authorities.