Argentina:

• A Civil Action was brought jointly by the U.S. Department of Justice and the U.S. Securities and Exchange Commission against IBM Corporation under the books and records provisions of the FCPA for consolidating the financial results of an Argentinian subsidiary in its SEC reports. That subsidiary, IBM-Argentina, allegedly made payments of at least US$ 4.5 million to several directors of Banco de La Nacion Argentina, a state-owned bank, through an intermediary, to enter into a systems integration contract with the bank. There were no allegation that IBM itself had inadequate accounting controls or knowledge of the payments, or that IBM had authorized the payments or made false entries into books and records. IBM paid a civil fine of US$300,000. Separate proceedings are underway in Argentina and Switzerland to recover the US$4.5 million payment.
  Source: Report by Lucinda Low on US FCPA Prosecutions, 5 May 2006. For more information see SEC v. International Business Machines Corporation (00-Civ.-3040) (D.D.C. 2000), SEC Litigation Release No. 16839 (Dec. 21, 2000)
• In June 2004, the press reported that Argentina's federal prosecutor, Guillermo Marijuan had requested a probe into former President Carlos Menem for allegedly receiving corrupt payments from the French defence company Thales Spectrum. Marijuan alleged that Menem asked Thales Spectrum, for $25 million in exchange for favouring the company in a state bid and that between 1997 and 1999, Thales deposited millions of dollars into the bank accounts of Argentinean government officials. Press reports indicated the funds were moved through Finega, a Swiss financial institution into four bank accounts linked to Menem officials. The funds were allegedly deposited into accounts at large financial institutions in New York and Philadelphia.
  Source: http://www.againstcorruption.org/CorruptionCase.asp?id=858
  Moneylaundering.com [Publication date: 23/6/2004] 'Ex-president probed for bribery'

Bolivia and Ecuador:

• Willbros Group, Inc.’s (“Willbros”) subsidiary, Willbros International Inc. (“WII”) is alleged to have made improper payments to government officials in Bolivia, Nigeria, and Ecuador, in exchange for construction contracts.Willbros’ internal investigation revealed that James Tillery, the former president of WII, and about twelve other employees and consultants owned interests in entities with whom WII did business.This allowed them to give and receive improper payments, corporate opportunities, and benefits.Tillery resigned from his post in January of 2005.The Company’s November 2005 filing states that Willbros is cooperating with investigations by the DOJ and SEC.
  Source: Report by Lucinda Low on US FCPA Prosecutions, 5 May 2006 and Willbros 10-K (Nov. 22, 2005)

Brazil:

• A case was brought in U.S. courts against International Material Solutions for making a payment of US$67,563 to a Brazilian Air Force officer in connection with a bid to sell ten forklifts. Both the company and its President were fined and received sentences of 1 year and 3 years probation respectively.
  Source: Report by Lucinda Low on US FCPA Prosecutions, 5 May 2006. For more information see U.S. v. International Material Solutions Corporation and Thomas K. Qualey (CR-3-99-008) (S.D. Ohio 1999)

• The SEC alleges that from 1999 to 2002, Earth Tech Brasil Ltda. (“Earth Tech Brasil”), a subsidiary Tyco acquired in 1998 and which is engaged in constructing water, sewage, and irrigation systems for the government entities in Brazil, made improper payments to Brazilian government officials for the purpose of obtaining or retaining business. The SEC alleges that at least 60 percent of Earth Tech Brasil’s contracts involved payments to government officials, and that such payments were specifically referenced in communications with executives at Earth Tech corporate offices in California. These payments allegedly were accomplished through a scheme of false or inflated invoicing by companies controlled by Earth Tech Brasil employees and by lobbyists. In addition, on at least one occasion, company books allegedly were falsified to conceal illicit payments and entertainment. Tyco entered into a settlement without admitting or denying the allegations of securities laws violations (including but not limited to FCPA violations), and agreeing to pay $50 million in civil penalties plus $1 in disgorgement for all of the alleged violations of securities laws.
  Source: Report by Lucinda Low on US FCPA Prosecutions, 5 May 2006. For more information see v. Tyco Int’l (Case No. 06 CV 2942) (Apr. 13, 2006) and related litigation release (Apr. 17, 2006).

• MetroRED, controlled by Fidelity Investments, allegedly paid bribes to win a contract for building a fiber-optics communication network in Sao Paolo. :Fidelity alerted the Department of Justice to the potential problem and is cooperating with the investigation.
  Source: Report by Lucinda Low on US FCPA Prosecutions, 5 May 2006 and Wall Street Journal (April 12, 2000); Boston Herald (April 12, 2000).

Colombia:

• Chiquita, through the customs broker of the company’s wholly owned Colombian subsidiary, allegedly made illegal payments amoThe charges brought were for violation of the FCPA books and records and internal control provisions. Chiquita settled the cease and desist order.The settlement required Chiquita to pay a civil penalty of $100,000. In early September 2004, Chiquita voluntarily disclosed to the SEC and the Justice Department that in 2003 its Greek subsidiary made an improper payment.
  Source: Report by Lucinda Low on US FCPA Prosecutions, 5 May 2006. See also :Chiquita 424B3 (Dec. 15, 2005); SEC v. Chiquita Brands International, Inc.(Civ. No. 1:01-02079) (D.D.C. 2001)

Costa Rica:

• Several executives and employees of Owl Securities and Investment Ltd. (OSI) allegedly conspired in the payment of at least US$1.5 million to Costa Rican officials and candidates for public office to obtain beneficial changes in Costa Rican law related to a land development project by OSI. All the accused were found or pleaded guilty and were convicted to months and/or years in prison.
  Source: Report by Lucinda Low on US FCPA Prosecutions, 5 May 2006. For more information see U.S. v. Halford (01 Cr. No. 221) (W.D. Mo. 2001); U.S. v. Reitz (01 Cr. No. 222) (W.D. Mo. 2001); U.S. v. Robert Richard King and Pablo Barquero Hernandez (Cr. No. 01-190) (W.D. Mo. 2001)
• In late 2004 Costa Rica's immediate past three presidents were accused of accepting bribes. Former president Rafael Ángel Calderón Fournier, Jr. (1990–94), was accused of having negotiated a multimillion-dollar bribe from a Finnish medical supply firm and was placed under house arrest. Former president Miguel Ángel Rodríguez Echeverría (1998–2002) was accused of having taken a huge bribe from the French telecommunications firm Alcatel for helping negotiate a deal. Rodríguez had just taken over as secretary-general of the Organization of American States and was forced to resign in order to return to Costa Rica to respond to the corruption charges. He too remained under house arrest. Former president José María Figueres Olsen (1994–98) was also tainted with bribery accusations related to Alcatel. Figueres had not returned from his residence in Geneva to respond to the charges.
  Source: http://www.britannica.com/eb/article-9403286?hook=854220

• See also: Report by Lucinda Low on US FCPA Prosecutions, 5 May 2006 indicating that Alcatel, a French multinational company listed on the New York Stock Exchange, is reported to have made improper payments in connection with a $149 million cellular phone contract in Costa Rica in 2001.Former Costa Rican President Miguel Angel Rodriguez and former Costa Rican power and telecommunications director Jose Antonio Lobo are alleged to have received $2.4 million from Alcatel in connection with the telecommunications contract.

Haiti:

• In the United States Courts a case was brought against the President and Vice-President of American Rice Inc. They allegedly authorized payments to customs officials in Haiti to induce the officials to accept false documents underestimating by one-third the quantity of rice shipped, such that customs duties and sales taxes owed by the company were reduced. A federal jury found the executives guilty of the charges and were sentenced to more than 3 years in prison.
  Source: Report by Lucinda Low on US FCPA Prosecutions, 5 May 2006. For more information see U.S. v. David Kay and Douglas Murphy, 359 F.3d 738 (5th Cir. 2004)

Nicaragua and Venezuela:

• BellSouth’s Venezuelan subsidiary allegedly made payments, based onfictitious invoices, totalling $10.8 million to six offshore companies; and its Nicaraguan subsidiary allegedly made payments to the wife of the Nicaraguan legislator who was chairman of the committee with telecommunications oversight. Charges were brought for violations of the books and records and internal control provisons of the FCPA. The company consented to a $150,000 civil penalty and a cease-and-desist order.
  Source: Report by Lucinda Low on US FCPA Prosecutions, 5 May 2006. See also SEC v. BellSouth Corporation (Civil Action No. 1:02-CV-0113) (N.D. Ga. 2002); SEC Accounting and Auditing Enforcement Release No. 1495 (Jan. 15, 2002)