VimpelCom’s $397.6 million FCPA settlement last week included a disgorgement to the SEC that ranks third on our list of the biggest FCPA disgorgements of all time.
The company agreed to pay the SEC $167.5 million in disgorgement and pre-judgment interest.
Our list of the top ten FCPA disgorgements hadn’t changed since December 2014, with Avon’s enforcment action.
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 more than three-quarters of its FCPA-related enforcement actions.
Here are the current top ten FCPA-related corporate disgorgements. All amounts also include pre-judgment interest:
1. Siemens $350 million in 2008
2. KBR $177 million in 2009
3. VimpelCom $167.5 million in 2016
4. Alcoa $161 million in 2014
5. Total S.A. $153 million in 2013
6. Snamprogetti $125 million in 2010
7. Technip $98 million in 2010
8. Daimler $91.4 million in 2010
9. Avon $67.35 million in 2014
10. Pfizer $45.2 million in 2012
The VimpelCom disgorgement knocked Alcatel-Lucent’s $45 million payment in 2010 off the list.
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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. He can be contacted here.
What was disclosed when Vimpelcom, a Russian-owned company operating throughout the former Soviet Union, listed on the NYSE and NASDAQ?
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