Embraer Ought $205M For SEC Bribery Probe
Brazilian airplane manufacturer Embraer SA owes and is subject to pay up the total amount of $205 million to end an investigation into bribes paid to foreign officials to help sell planes.
The Securities and Exchange Commission (SEC) exclaimed on Monday that Embraer created false records to hide some of the payments as sales commissions. Senior company executives and officers approved the payments despite signs that the money would likely go to foreign officials. This however was confirmed by SEC in one of their statements.
The SEC complaint said and explained that Embraer made more than $83 million in profit and revenue from the sales linked to bribes to officials in the countries of India, Saudi Arabia, Mozambique and the Dominican Republic respectively.
Embraer released in a statement that it admitted responsibility and had agreed to settle the investigations set by the SEC, the Justice Department and authorities in the country of Brazil.
The company, Embraer said it was questioned in 2010 by United States authorities about certain foreign sales and began its own investigation, which was led by outside law firms and other government agencies.
Embraer also exclaimed that it has just recently finished the investigation and found that it was responsible for misdeeds and misconducts in transactions for 16 aircrafts between 2007 and 2011. The company said it regretted the conduct and the illegal offense and action.
The SEC ordered Embraer to pay a total of $107 million penalty and give up more than $98 million in ill-gotten gains and interest. The company may get credit for up to $20 million depending on how much it pays to Brazilian authorities in a related case there, the SEC said. The SEC complaint was filed in federal district court in Florida and accused Embraer of violating the Foreign Corrupt Practices Act.