Directorate of Defense Trade Controls (DDTC)
On October 5, the Directorate of Defense Trade Controls (DDTC) published its recently concluded consent agreement with Marc Turi and Turi Defense Group, Inc. The company was assessed a $200,000 civil penalty in connection with the unauthorized conduct of brokering activities and the unauthorized proposal for sale or transfer of defense articles to a prohibited country, Libya.
Securities and Exchange Commission (SEC) and the Department of Justice (DOJ)
- One October 24, the SEC announced a global settlement along with the U.S. Department of Justice (DOJ) and Brazilian authorities that requires aircraft manufacturer Embraer S.A. to pay more than $205 million to resolve alleged violations of the Foreign Corrupt Practices Act (FCPA). The SEC’s complaint alleges that Embraer made more than $83 million in profits as a result of bribe payments from its U.S.-based subsidiary through third-party agents to foreign government officials in the Dominican Republic, Saudi Arabia, and Mozambique. Embraer allegedly created false books and records to conceal the illicit payments, and also engaged in an alleged accounting scheme in India.
- Under the settlement, Embraer must pay a $107 million penalty to the Justice Department as part of a deferred prosecution agreement, and more than $98 million in disgorgement and interest to the SEC. Embraer may receive up to a $20 million credit depending on the amount of disgorgement it will pay to Brazilian authorities in a parallel civil proceeding in Brazil. Embraer must retain an independent corporate monitor for at least three years.