Here’s Alcoa’s disclosure from its Form 8-K filed with the SEC on January 10 about the FCPA enforcement action that landed 5th on our Top Ten list:
On January 9, 2014, Alcoa Inc. (“Alcoa” or the “Company”) resolved the investigations by the U.S. Department of Justice (“DOJ”) and the U.S. Securitie es and Exchange Commission (“SEC”) regarding certain legacy alumina contracts with Aluminium Bahrain B.S.C. (“Alba”). . . .
The settlement with the DOJ was reached with Alcoa World Alumina LLC (“AWA”). AWA is a company within Alcoa World Alumina and Chemicals (“AWAC”), the unincorporated bauxite mining and alumina refining venture between the Company and Alumina Limited. Under the terms of a plea agreement entered into with the DOJ, effective January 9, 2014, AWA pled guilty to one count of violating the anti-bribery provisions of the Foreign Corrupt Practices Act of 1977, as amended (the “FCPA”). As part of the DOJ resolution, AWA agreed to pay a total of $223 million, including a fine of $209 million payable in five equal installments over four years. The first installment of $41.8 million, plus a one-time administrative forfeiture of $14 million, will be paid in the first quarter of 2014, and the remaining installments of $41.8 million each will be paid in the first quarters of 2015-2018. The DOJ is bringing no case against the Company.
Effective January 9, 2014, the Company also settled civil charges filed by the SEC in an administrative proceeding relating to the anti-bribery, internal controls, and books and records provisions of the FCPA. Under the terms of the settlement with the SEC, the Company agreed to a settlement amount of $175 million, but will be given credit for the $14 million one-time forfeiture payment, which is part of the DOJ resolution, resulting in a total cash payment to the SEC of $161 million payable in five equal installments over four years. The first installment of $32.2 million will be paid to the SEC in the first quarter of 2014, and the remaining installments of $32.2 million each will be paid in the first quarters of 2015-2018.
There was no allegation in the filings by the DOJ and there was no finding by the SEC that anyone at the Company knowingly engaged in the conduct at issue. The SEC and DOJ also recognized the Company for its cooperation and compliance efforts.
Research courtesy of the ethiXbase GRC Database.