Bahrain’s state-owned aluminum producer asked a court to let it proceed with racketeering claims that it overpaid for raw materials because of bribes directed by Alcoa Inc. (AA), the largest U.S. aluminum producer.
Aluminium Bahrain BSC, known as Alba, claims that New York- based Alcoa bribed senior officials in Bahrain and caused Alba to pay almost $500 million more than it should have for alumina, the principal raw material in aluminum. Alcoa has asked a judge to dismiss the case, arguing that the alleged conduct took place outside the U.S. and shouldn’t be litigated in federal court.
Alba countered that Alcoa and other defendants used offshore shell companies to “perpetrate and conceal a massive, home-cooked bribery scheme conceived, orchestrated, and directed in and from the United States,” according to its filing yesterday in federal court in Pittsburgh.
Claims of domestic leadership of the fraudulent scheme are “amply supported by Alba’s detailed, specific, and documented allegations of actions in furtherance of the scheme by senior domestic executives,” according to the filing.
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Showing posts with label FCPA. Show all posts
Showing posts with label FCPA. Show all posts
Thursday, March 1, 2012
Thursday, January 26, 2012
SEC Investigates Bribes paid to Abu Dhabi Investment Authority
The SEC launched an investigation to determine whether U.S. financial firms made unlawful payments in connection with obtaining or seeking to obtain investments from sovereign wealth funds – payments which might have violated the Foreign Corrupt Practices Act (“FCPA” or “Act”).
The Abu Dhabi Investment Authority, which channels Abu Dhabi’s oil profits into investments – are
large pools of cash that governments draw from their reserves to make investments. The SEC’s investigation, although in an early stage, appears to focus on whether certain U.S.- based banks, hedge funds and private equity firms – either directly or indirectly – made illegal payments to employees or representatives of sovereign wealth funds.
The Abu Dhabi Investment Authority, which channels Abu Dhabi’s oil profits into investments – are
large pools of cash that governments draw from their reserves to make investments. The SEC’s investigation, although in an early stage, appears to focus on whether certain U.S.- based banks, hedge funds and private equity firms – either directly or indirectly – made illegal payments to employees or representatives of sovereign wealth funds.
Thursday, September 1, 2011
UAE: FCPA violation Dolphin Energy
In the case of Control Components executives Mario Covino and Richard Morlok, both pled guilty in connection with making corrupt payments to officials at various state-owned enterprises, including the Dolphin Energy company in the United Arab Emirates and Safco in Saudi Arabia.
As with other cases, Covino and Morlok made payments to government officials, disguised as “commissions.” The payments were primarily made to individuals at the state-owned companies who had the power to direct business.
Of note, both individuals were alleged to have made specific false or misleading statements or undertook other actions to impede investigation into the alleged improper activity.
For instance, Morlok admitted to providing “false and misleading information to [the company’s] external auditors regarding his knowledge of and participation in improper payments” made to foreign officials.
Covino also admitted to having deleted emails and instructing others to delete emails that referred to the corrupt payments, for the purpose of obstructing the internal audit into the commission payments.
Underscoring the seriousness of FCPA penalties for individuals, both Covino and Morlok face up to five years in prison for these violations.
As with other cases, Covino and Morlok made payments to government officials, disguised as “commissions.” The payments were primarily made to individuals at the state-owned companies who had the power to direct business.
Of note, both individuals were alleged to have made specific false or misleading statements or undertook other actions to impede investigation into the alleged improper activity.
For instance, Morlok admitted to providing “false and misleading information to [the company’s] external auditors regarding his knowledge of and participation in improper payments” made to foreign officials.
Covino also admitted to having deleted emails and instructing others to delete emails that referred to the corrupt payments, for the purpose of obstructing the internal audit into the commission payments.
Underscoring the seriousness of FCPA penalties for individuals, both Covino and Morlok face up to five years in prison for these violations.
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