Last week’s $264 million enforcement action against JPMorgan Chase included disgorgement to the SEC of $130.5 million — the seventh biggest FCPA disgorgement of all time.
The SEC said $105.5 million was disgorgement and $25 million was pre-judgment interest.
Our disgorgement top ten list is always based on disgorgement plus interest.
JPMorgan knocked Embraer off the top ten disgorgement list. Embraer disgorged $79.5 million to the SEC in October.
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Disgorgement, according to Contributing Editor Marc Alain Bohn, is a remedy authorized by the Securities Exchange Act of 1934 that’s “used to deprive wrong-doers of their ill-gotten gains and deter violations of federal securities law.”
Disgorgement first appeared in an FCPA enforcement action in 2004 when ABB Ltd disgorged $5.9 million to resolve books and records and internal controls offenses.
Since then the SEC has used disgorgement in most of its FCPA-related enforcement actions.
The DOJ’s Pilot Program introduced in April this year requires companies to disgorge profits to be eligible for a declination.
None of the Pilot Program disgorgements have landed on the top ten disgorgement list.
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Here are the current top ten FCPA-related corporate disgorgements. All amounts also include pre-judgment interest:
1. Siemens $350 million in 2008
2. Och-Ziff $199 million in 2016
3. KBR $177 million in 2009
4. VimpelCom $167.5 million in 2016
5. Alcoa $161 million in 2014
6. Total S.A. $153 million in 2013
7. JPMorgan Chase $130.5 million in 2016
8. Snamprogetti $125 million in 2010
9. Technip $98 million in 2010
10. Daimler $91.4 million in 2010
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For comparison, here’s our current list of the top ten FCPA enforcement actions.
Richard L. Cassin is the publisher and editor of the FCPA Blog.