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Harry Cassin
Publisher and Editor

Andy Spalding
Senior Editor

Jessica Tillipman
Senior Editor

Bill Steinman
Senior Editor

Richard L. Cassin
Editor at Large

Elizabeth K. Spahn
Editor Emeritus

Cody Worthington
Contributing Editor

Julie DiMauro
Contributing Editor

Thomas Fox
Contributing Editor

Marc Alain Bohn
Contributing Editor

Bill Waite
Contributing Editor

Shruti J. Shah
Contributing Editor

Russell A. Stamets
Contributing Editor

Richard Bistrong
Contributing Editor

Eric Carlson
Contributing Editor

Petrobras tops new top ten disgorgement list

Petrobras’s $1.78 billion FCPA resolution last week included disgorgement of $933.5 million, the biggest ever ordered in an FCPA enforcement action.

The SEC allowed Petrobras to credit against the disgorgement the money it had already paid into a settlement fund for U.S. shareholder litigation.

If for some reason Petrobras hasn’t disgorged that amount within a year through payments to the U.S. class action fund or otherwise, then Petrobras must pay the money directly to the SEC.

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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.

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Here are the current top ten FCPA-related corporate disgorgements. Amounts also include pre-judgment interest:

1. Petrobras $933.5 million in 2018

2. Telia $457 million in 2017

3. VimpelCom $375 million in 2016

4.  Siemens $350 million in 2008

5.  Teva $236 million in 2016

6.  Och-Ziff $199 million in 2016

7.  KBR $177 million in 2009

8.  Alcoa $161 million in 2014

9.  Total S.A. $153 million in 2013

10.  JPMorgan Chase $130.5 million in 2016

Knocked off the top ten disgorgement list is Snamprogetti, which disgorged $125 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.

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