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.