Embraer to Settle U.S., Brazil Corruption Case for $205 Million
Embraer SA reached agreements with U.S. and Brazilian authorities to settle corruption allegations that have dogged the planemaker since 2011.
Under the settlement, Embraer will pay more than $205 million to resolve accusations that the company violated the Foreign Corrupt Practices Act, according to a statement on Oct. 24 by the U.S. Securities and Exchange Commission.
Embraer earlier set aside $200 million in connection with the probe.
The SEC alleged that Embraer made more than $83 million in profits by paying bribes from a U.S. subsidiary to government officials in the Dominican Republic and several other countries.
The bribes included a $3.52 million payment to a Dominican air force official for a military contract, $1.65 million to a Saudi official and $800,000 in Mozambique. About $5.76 million was paid to “an agent in India,” the SEC said.
Under the settlement, Embraer will pay a $107 million penalty to the U.S. Justice Department as part of a deferred prosecution agreement.
It will pay more than $98 million in disgorgement and interest to the SEC.
