CDM Smith Inc.
To date, the only corporate FCPA enforcement activity of the Trump Administration have been two "declinations," accompanied by disgorgement and certain admissions, under the FCPA Pilot Program. In June 2017, the DOJ awoke from its slumber on the FCPA front, announcing its first corporate resolutions in the form of agreed declination letters with disgorgement involving industrial gas supplier Linde Group and privately held engineering and construction firm CDM Smith Inc. A subsidiary acquired by Linde was alleged to have paid bribes from 2006 - 2009 to secure the purchase of certain income producing assets from a Georgian state owned entity. Employees of CDM Smith's division responsible for Indian operations and an Indian subsidiary allegedly paid bribes from 2011 to 2015 to government officials in India in exchange for design and water project contracts and highway construction supervision. In each case, the company conducted an internal investigation, remediated the conduct, voluntarily disclosed the payments to DOJ, disgorged profits/illicit gains and agreed to DOJ's statement of facts. These resolutions are similar in terms and language to declinations with disgorgement and admissions issued by the DOJ under the Obama Administration.
Atlas Electronik GmbH
In a recent case of particular relevance to the A&D industry, it was reported in early June that a German defense company, Atlas Electronik GmbH, agreed to disgorge €48 million to resolve German government allegations that an Atlas employee paid a Greek sales agent €13 million to win a contract for submarine sonar systems and that it paid a bribe through a Peruvian sales agent to win a torpedo contract for the Peruvian Navy. This case illustrates the German government's continuing strong commitment to enforcing Germany's anti-corruption law and its willingness to impose a financially significant penalty on a German defense contractor to punish alleged bribery in connection with foreign defense sales.