On June 16, the DOJ announced that a U.S. defense contractor, IAP Worldwide Services, Inc., will pay $7.1 million to resolve allegations that the company made over $1.7 million in illegal payments to Kuwati officials through a third party. The company entered into a non-prosecution agreement that requires the company to implement an enhanced compliance program and internal controls designed to prevent and detect FCPA violations, and to report annually for three years to DOJ regarding its compliance program. A former Vice President of IAP, James Rama, also pleaded guilty to one count of conspiracy to violate the anti-bribery provisions of the FCPA.
The DOJ emphasized the company’s cooperation with the government’s investigation as relevant to the decision to enter into a non-prosecution agreement instead of a more harsh resolution. This statement appears to implement the policy announced in recent DOJ speeches, which have touted the benefits of cooperation to companies including the possibility of non-prosecution agreements. It is worth noting that an individual executive still was required to plead guilty, regardless of the company’s resolution.