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U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 23705 / December 21, 2016

Securities and Exchange Commission v. Braskem, S.A., Civil Action No. 1:16-cv-02488 (D.C. filed December 21, 2016)

SEC Charges Brazil-Based Petrochemical Company with FCPA Violations

The Securities and Exchange Commission today announced that a Brazilian-based petrochemical manufacturer whose stock trades in the U.S. markets has agreed to settle charges that it created false books and records to conceal millions of dollars in illicit bribes paid to Brazilian government officials to win or retain business.

In a global settlement with the SEC, U.S. Department of Justice, and authorities in Brazil and Switzerland, Braskem S.A. agreed to pay $957 million.

The SEC's complaint alleges that Braskem made approximately $325 million in profits through bribes paid through intermediaries and off-book accounts managed by a private company that was Braskem's largest shareholder. Bribes were paid to a government official at Brazil's state-controlled petroleum company as well as Brazilian legislators and political party officials.

Braskem agreed to pay $325 million in disgorgement, including $65 million to the SEC and $260 million to Brazilian authorities. Braskem agreed to pay more than $632 million in criminal penalties and fines. The company must retain an independent corporate monitor for at least three years.

The SEC's complaint was filed in U.S. District Court for the District of Columbia. Braskem consented to the entry of a court order ordering the company to pay disgorgement and retain an independent monitor for three years, and permanently enjoining the company from future violations of Sections 30A, 13(b)(2)(A), and 13(b)(2)(B) of the Securities Exchange Act of 1934.

The SEC's investigation is continuing. It is being conducted by Ernesto Palacios and Thierry Olivier Desmet of the FCPA Unit with assistance from David S. Johnson and Fernando Torres, and supervised by Kara Brockmeyer, chief of the FCPA Unit. The SEC appreciates the assistance of the Department of Justice Criminal Division's Fraud Section, the Federal Bureau of Investigation, the Brazilian Federal Prosecution Service, the Brazilian Federal Police, and the Office of the Attorney General in Switzerland.

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SEC Complaint

 

https://www.sec.gov/litigation/litreleases/2016/lr23705.htm


Modified: 12/21/2016