Business Crimes Hotline

Beginning around 2001, Odebrecht began paying government officials — with bribes eventually totaling approximately $788 million — to secure business in 12 countries, including Angola, Venezuela and Mexico. The Division of Structured Operations (Odebrecht's effective “Department of Bribery,” as described by the DOJ) was established in 2006 to accomplish this purpose. During this time, bribe payments were authorized by high-ranking employees within the company via emails and instant messages through an independent system. The bribe money flowed from the Division of Structured Operations to multiple offshore entities that were not detailed in the company's records as being Odebrecht-affiliated entities. Funds were paid from these offshore entities to government officials using wire transfers, and cash payments were also utilized.

Similarly, between 2006 and 2014, Braskem funneled approximately $250 million through Odebrecht's bribery-rigged system to Brazilian political parties and politicians, including to Petrobras. Braskem's improper payments earned the company significant business and political incentives in Brazil.

Odebrecht pled guilty to conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA). Further, while it acknowledged that a criminal penalty of $4.5 billion was appropriate, the ultimate amount to be paid will be set later based upon an assessment of the company's ability to pay. However, the minimum amount will be at least $2.6 billion. The total amount to be paid will be determined at the April 17, 2017 sentencing and will be contingent upon calculations performed by the DOJ and authorities in Brazil. Odebrecht also settled with the Ministerio Publico Federal in Brazil and the Office of the Attorney General in Switzerland. According to Brazilian authorities, the fine will be paid over a period of 23 years.

Braskem also pled guilty to conspiracy to violate the anti-bribery provisions of the FCPA, and agreed to a criminal penalty of $957 million. For creating false books and records, Braskem settled with the U.S. Securities and Exchange Commission (SEC), the Ministerio Publico Federal in Brazil, and the Office of the Attorney General in Switzerland. Pursuant to the SEC Complaint, Braskem is responsible for disgorging $325 million in profits earned from the illegal conduct, of which $65 million will go to the Untied States and $260 million will be paid to Brazil.

Additionally, pursuant to the plea agreements filed in the U.S. District Court for the Eastern District of New York, both Odebrecht and Braskem are required to retain independent compliance monitors for three-year terms.

The Odebrecht and Braskem settlement underscores the government's continued efforts to coordinate with law enforcement around the world to combat corruption. As noted by Assistant Director Stephen Richardson of the FBI's Criminal Investigative Unit: “Our commitment to work alongside our foreign partners to root out corruption across the globe is unwavering and we thank our Brazilian and Swiss partners for their tireless work in this effort.” Likewise, Stephanie Avakian, Deputy Director of the SEC's Enforcement Division, stated that “Braskem's misconduct was exposed through the investigative work of authorities in three countries.”