Embraer to Pay $205 Million to Settle Bribery Allegations
October 24 2016 - 1:40PM
Dow Jones News
SÃ O PAULO—Brazilian aircraft maker Embraer SA reached an
agreement with U.S. and Brazilian authorities to settle an
investigation into alleged bribes paid to foreign officials, the
U.S. Securities and Exchange Commission said Monday.
Under the settlement, Embraer agreed to pay a total of $205
million in compensation to end the investigation into whether the
company violated the Foreign Corrupt Practices Act, or FCPA,
regarding the sale of planes to various countries.
"The SEC's complaint alleges that Embraer made more than $83
million in profits as a result of bribe payments from its
U.S.-based subsidiary through third-party agents to foreign
government officials in the Dominican Republic, Saudi Arabia, and
Mozambique," the SEC said in a press release.
After being subpoenaed by U.S. authorities in 2010, the company
carried out an internal investigation of sales in the three
countries. In May 2015, Embraer started discussions with the
Justice Department for a possible resolution of the
allegations.
As part if the settlement, Embraer agreed to pay $107 million to
the Justice Department as part of a deferred prosecution agreement,
and another $98 million to the SEC.
The company in July reported a net loss of 337.3 million
Brazilian reais ($102 million) in the second quarter, reversing a
net profit of 399.6 million reais in the year-ago period.
Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com
(END) Dow Jones Newswires
October 24, 2016 13:25 ET (17:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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