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U.S. v. Marubeni Corporation

 
:
Marubeni Corporation
:
DOJ Criminal
:
March 19, 2014
:
U.S. v. Marubeni Corporation
:
U.S. v. Marubeni Corporation, No.3:14-cr-00052 (D. Conn. 2014)
:
This is the second FCPA enforcement action against Marubeni in two years after the company paid a 54.6 million penalty in 2012 for FCPA violations related to the TSKJ Nigeria joint venture.

Court documents also emphasized Marubeni’s refusal to cooperate with the government’s investigation and failure to voluntarily disclose the conduct, yet did not state whether Marubeni violated its 2012 deferred prosecution agreement with the DOJ.
:
Utilities-Electric
:
Indonesia
:
2002; 2003; 2004; 2005; 2006; 2007; 2008.
:
Members of the Indonesian Parliament; Officials at the state owned Indonesian electricity company, Perusahaan Listrik Negara.
:
Marubeni Corporation (“Marubeni”) is a trading company headquartered in Japan that conducts business around the world, including the provision of engineering services. In 2002, Marubeni partnered with the French power and transportation company, Alstom S.A. (“Alstom”) to procure a valuable power services contract in Indonesia (the “Tarahan Project”). Court documents do not name Alstom (referred to only as the “Power Company”), but name a number of Alstom officials—Frederic Pierucci, Lawrence Hoskins, William Pomponi, and David Rothschild—who were indicted in 2013 for the very same conduct the DOJ has alleged in its information against Marubeni.

Beginning in 2002, Pierucci, Hoskins, Pomponi, and Rothschild (along with two unnamed employees) hired two consultants with the intent to bribe members of the Indonesian parliament and the state owned power company, Perusahaan Listrik Negara (“PLN”), in exchange for securing the contract for the Tarahan Project. Court documents allege that employees of Marubeni were complicit in organizing the bribes. Specifically, the information alleges that Marubeni employees were responsible for: approving three separate wire transfers totaling $357,793.79 from a bank account in New York to one consultant ‘s bank account in Maryland for use as bribes; attending multiple meetings with the Alstom officials in Connecticut regarding the Tarahan Project; and corresponding via email with the Alstom officials to discuss the bribery scheme. In 2005, Marubeni and Alstom were awarded the contract for the Tarahan Project.

On March 19, 2014, the DOJ announced that it reached a plea agreement with Marubeni for its involvement in the Tarahan Project bribery scheme. In the agreement, Marubeni pleaded guilty to one count of conspiracy to violate the FCPA and seven counts of violating the FCPA’s anti-bribery provisions.
:
Anti-bribery (Other Persons), Conspiracy - Anti-Bribery
:
Plea
:
$88 million criminal fine.
:
88,000,000
:
0
:
Agent of Domestic Concern, Agent of Issuer, Other Person
:
Agent/Intermediary
:
Foreign
:
Japan
:
Contract Procurement/Retention
:
Not stated.
:
Cash, Wire/check
:
Customs Broker or Agent/Consultant
:
Not stated.
:
Indonesia
:
United States
:
No
:
No