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U.S. v. Renault Trucks SAS

 
:
AB Volvo - Renault Trucks SAS
:
DOJ Criminal
:
March 20, 2008
:
U.S. v. Renault Trucks SAS
:
U.S. v. Renault Trucks SAS, No. 1:08-cr-68 (D.D.C. 2008)
:
Automotive
:
Iraq
:
2000; 2001; 2002; 2003
:
Iraqi government, including state-owned companies: General Automobile and Machinery Company (Iraqi Ministry of Trade); Ministry of Higher Education and Scientific Research; State Company of Baghdad Electricity Distribution (Commission of Electricity); State Company of Iraqi Airways (Ministry of Transport and Communication); Economics and Finance Department of the Ministry of Oil.
:
In April 1995, the U.N. adopted Security Council Resolution 986 which permitted Iraq to sell its oil and to use proceeds from those sales to purchase humanitarian supplies such as food for the Iraqi people ("U.N. Oil-for-Food Program" or "OFF"). In an extensive scheme, the Iraqi government received illicit payments in the form of surcharges from oil purchasers and kickbacks, often termed "after sales service fees," from humanitarian goods suppliers. The kickback payments were masked by inflating the contract price, usually by 10% of the contract value.
From November 2000 through April 2003, Renault Trucks SAS entered into at least 17 contracts with various Iraqi ministries. The price of each contract was inflated by 10% before it was sent to the U.N. for review; the U.N. approved the contracts and Renault Trucks SAS was issued letters of credit for the contract value which included the 10% kickback. In performing the contracts, Renault Trucks SAS used a Swiss bodybuilder company to tailor the requested vehicles to the Iraqi ministry's specifications. Renault provided extra payments to the bodybuilder company, which it passed onto the Iraqi government to ensure that Renault Trucks SAS would be awarded additional contracts. Overall, the Iraqi government received $4.8 million in kickbacks from Renault Trucks SAS. In return for these kickbacks, Renault Trucks SAS obtained contracts to supply vehicles and other equipment approximately worth €61 million (approximately $95,641,900).
As in the majority of Oil for Food cases, the government did not allege any improper payments to any individual foreign officials.

In March 2008, AB Volvo and the DOJ agreed to a deferred-prosecution agreement. Pursuant to the agreement, AB Volvo agreed to pay a fine totaling $7 million for FCPA books and records and wire fraud violations committed by Renault Trucks SAS and VCEI, another subsidiary.

In June 2011, the court granted the DOJ's motion to dismiss the case because of AB Volvo's compliance with the DPA that had bound Renault Trucks SAS.
:
Conspiracy - Books & Records
:
Conspiracy - Wire Fraud
:
Subject to Deferred-prosecution Agreement
:
Not stated.
:
0
:
Foreign
:
Contract Procurement/Retention
:
95,641,900
:
Sales Agent/Consultant
:
4,800,000
:
Iraq
:
No
:
Sweden