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LATAM Airlines resolves FCPA case for $22 million

Jaclyn Jaeger | July 26, 2016

LAN Airlines (now known as LATAM Airlines Group), a commercial airline company based in South America, has agreed to pay more than $22 million to settle parallel civil and criminal cases related to improper payments it authorized during a dispute between the airline and its union employees in Argentina.

LAN will pay $9.4 million in disgorgement and prejudgment interest to settle the SEC’s charges that it failed to keep accurate books and records and maintain adequate internal accounting controls. Additionally, in a three-year deferred prosecution agreement reached with the U.S. Department of Justice, LAN will pay an additional $12.75 million penalty.

An SEC investigation found that when LAN encountered problems negotiating labor agreements with the unions, it was contacted by a consultant from Argentina who offered to negotiate on the...

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