Corporación Financiera Colombiana S.A. (Corficolombiana), a Colombian monetary companies establishment, has agreed to pay over $80 million to resolve parallel bribery investigations by prison, civil, and administrative authorities in the US and Colombia stemming from the corporate’s involvement in a scheme to pay hundreds of thousands of {dollars} in bribes to high-ranking authorities officers in Colombia.
The U.S. Division of Justice’s decision is coordinated with authorities in Colombia, in addition to the U.S. Securities and Change Fee (SEC).
In keeping with court docket paperwork, Corficolombiana entered right into a three-year deferred prosecution settlement (DPA) with the Division in reference to a prison data filed within the District of Maryland charging the corporate with conspiracy to violate the anti-bribery provision of the Overseas Corrupt Practices Act (FCPA). Corficolombiana was majority-owned and managed by Grupo Aval Acciones y Valores S.A., a Colombian holding firm and issuer in the US.
In keeping with court docket paperwork, between 2012 and 2015, Corficolombiana conspired to supply and pay greater than $23 million in bribes to high-ranking Colombian authorities officers with a purpose to win a contract to assemble and function a freeway toll street referred to as the Ocaña-Gamarra Extension. Corficolombiana conspired with Odebrecht S.A. (Odebrecht), a world building conglomerate primarily based in Brazil, to pay bribes to Colombian authorities officers within the govt and legislative branches and to an govt at Colombia’s state-owned infrastructure company, with a purpose to win the rights to assemble and function the Ocaña-Gamarra Extension. To hold out the bribery scheme, Corficolombiana induced different entities to enter into fictitious contracts with corporations related to intermediaries that handed alongside the bribe funds to the Colombian authorities officers. Finally, Corficolombiana earned roughly $28.63 million in income from the corruptly obtained enterprise.
“Corficolombiana, along with its co-conspirators, agreed to pay greater than $20 million in bribes to high-ranking authorities officers throughout the Colombian authorities to win an enormous infrastructure challenge,” mentioned Performing Assistant Lawyer Basic Nicole M. Argentieri of the Justice Division’s Felony Division. “At this time’s decision – the first-ever coordinated with Colombian authorities in a overseas bribery case – displays the Justice Division’s dedication to working shoulder-to-shoulder with our overseas companions to fight transnational corruption and maintain accountable corporations that overtly pay bribes for financial acquire.”
“Corficolombiana has acknowledged its position in a big overseas bribery scheme, and for that it’s being held accountable,” mentioned U.S. Lawyer Erek L. Barron for the District of Maryland. “Underneath the DPA, the corporate is paying a considerable prison penalty and can proceed to cooperate with the US in prison investigations referring to this conduct. My workplace is happy to be a part of this first-ever joint FCPA bribery prosecution with Colombian authorities.”
Pursuant to the DPA, Corficolombiana pays a prison penalty of $40.6 million. The Division has agreed to credit score as much as half of that prison penalty towards cash that the corporate and its subsidiary, Estudios y Proyectos del Sol S.A.S. (Episol), paid to Colombia’s Superintendencia de Industria y Comercio (SIC), for violations of Colombian legal guidelines associated to the identical conduct, as long as the corporate and Episol drop their appeals of the SIC decision. As well as, Corficolombiana pays over $40 million in disgorgement and prejudgment curiosity as a part of a decision of the SEC’s parallel investigation.
Corficolombiana additionally agreed to proceed cooperating with the Division in any ongoing or future prison investigations referring to this conduct. As well as, underneath the settlement, Corficolombiana agreed to proceed enhancing its compliance program and offering reviews to the Division relating to remediation and the implementation of compliance measures for the time period of the DPA.
“At this time’s decision exhibits that justice has a steep worth for individuals who try to bribe overseas authorities officers,” mentioned Assistant Director Luis Quesada of the FBI’s Felony Investigative Division. “Schemes like these violate the Overseas Corrupt Practices Act and are an try to essentially undermine the spirit of financial competitors. The FBI is devoted to defending the integrity of the worldwide market, which implies investigating bribes of any quantity, and stopping the corruption of officers in any respect ranges.”
The Division reached this decision with Corficolombiana primarily based on quite a few components, together with, amongst others, the character and seriousness of the offense. Corficolombiana acquired credit score for its cooperation with the Division’s investigation, which included (i) well timed offering the details obtained by means of the corporate’s inside investigation; (ii) making quite a few detailed factual displays that distilled sure key factual data; (iii) producing paperwork that the federal government might not in any other case have had entry to in ways in which didn’t implicate overseas knowledge privateness legal guidelines; (iv) offering sworn testimony from Colombian prison and administrative proceedings of related witnesses whom the federal government couldn’t independently interview; (v) proactively figuring out data beforehand unknown to the federal government; and (vi) accumulating and producing voluminous related paperwork and translations, together with paperwork positioned exterior of the US.
The corporate promptly engaged in intensive remedial measures together with, amongst different issues (i) conducting a root trigger evaluation of the conduct recognized throughout inside investigations and promptly taking actions to reinforce its company governance and controls at three way partnership entities, in addition to enhancing its oversight of non-controlled joint ventures and investments; (ii) overhauling its compliance program; (iii) enhancing its third-party middleman danger administration course of; (iv) implementing a sturdy course of for reporting and investigating allegations of misconduct; (v) establishing a disciplinary course of overseen by a cross-functional ethics committee; (vi) conducting testing of its anticorruption compliance program; and (vii) partaking in a periodic evaluate of and updating of its anticorruption compliance program. In gentle of those concerns, the prison penalty calculated underneath the U.S. Sentencing Pointers displays a 30% discount off the underside of the relevant tips wonderful vary.
The FBI’s Worldwide Corruption Squad in Miami is investigating the case. The Justice Division’s Workplace of Worldwide Affairs, Colombia’s Superintendencia de Industria y Comercio, and the Fiscalía Basic de la Nación supplied substantial help within the matter.
Trial Lawyer Michael Culhane Harper of the Felony Division’s Fraud Part and Assistant U.S. Lawyer David I. Salem for the District of Maryland are prosecuting the case.
The Felony Division’s Fraud Part is liable for investigating and prosecuting FCPA issues. Extra details about the Justice Division’s FCPA enforcement efforts will be discovered at www.justice.gov/criminal/fraud/fcpa.
