+1 212 318 2000
Europe, Middle East, & Africa
+44 20 7330 7500
+65 6212 1000
By Jimmy H. Koo
May 15 — The U.S. District Court for the District of Connecticut May 15ordered Marubeni Corp.—a Japanese trading company—to pay an $88 million fine, pursuant to an earlierplea agreement, for its role in a scheme to bribe Indonesian officials to win an electricity contract as a part of a joint venture with French power-equipment maker Alstom S.A.
In the agreement, Marubeni also admitted to violating the Foreign Corrupt Practices Act, agreed to maintain an enhanced anti-corruption compliance program, and agreed to cooperate with the Justice Department's ongoing investigation.
According to the DOJ, Marubeni paid bribes to Indonesian officials in exchange for securing a $118 million contract for the company and its consortium partner—Alstom—to provide power services for Indonesian citizens. To conceal the bribes, Marubeni and Alstom retained consultants to purportedly provide consulting services. In reality, however, the consultants were used as channels to pay bribes to the Indonesian officials, the DOJ said.
In March, Marubeni pleaded guilty to one count of conspiracy to violate the FCPA and seven counts of violating the FCPA. In a May 15 release, the DOJ said that the “plea agreement cites Marubeni's refusal to cooperate” as well as its lack of an effective compliance program. Marubeni was represented by Christopher M. Paparella and Marc A. Weinstein of Hughes, Hubbard & Reed LLP, New York.
According to the DOJ, four current or former Alstom executives, including Frederic Pierucci, David Rothschild, Lawrence Hoskins and William Pomponi, have been charged with related misconduct. Pierucci pleaded guilty July 2013 to violating the FCPA and conspiring to violate the FCPA; Rothschild pleaded guilty November 2012 to violating the FCPA.
The case is not the first in which Marubeni has faced charges of FCPA violations. In February, it was released from a two-year deferred prosecution agreement—in which, it agreed to pay $54.6 million—for its role in a scheme to bribe Nigerian officials to win a $6 billion contract to build and expand a gas plant.
To contact the reporter on this story: Jimmy H. Koo in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Phyllis Diamond at email@example.com
To see the sentencing minutes, go to http://www.bloomberglaw.com/public/document/USA_v_Marubeni_Corporation_Docket_No_314cr00052_D_Conn_Mar_19_201/1.
To see the plea agreement, go to http://www.bloomberglaw.com/public/document/USA_v_Marubeni_Corporation_Docket_No_314cr00052_D_Conn_Mar_19_201.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).