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DoJ sends clear signal in the LATAM/LAN FCPA enforcement action

Tom Fox | August 9, 2016

In July, the Justice Department and Securities and Exchange Commission concluded the long-running Foreign Corrupt Practices Act (FCPA) enforcement action involving the LATAM Airlines Group S.A. (LATAM). The settlement documents released included details on the criminal charges; a Deferred Prosecution Agreement (DPA); and a Securities and Exchange Commission (SEC) Cease and Desist Order (Order) outlining the civil violations. LATAM’s predecessor-in-interest is LAN Airlines S.A. (LAN).

The cost to LATAM was high. As noted in the Justice Department press release, “As part of the DPA, LATAM agreed to pay a $12.75 million criminal penalty” and under the civil settlement with the SEC the company “agreed to pay $6.74 million in disgorgement and $2.7 million in prejudgment interest. Thus, the company paid approximately $22.2 million in combined penalty, disgorgement.”

The July settlements bookended the civil settlement with current LATAM President Ignacio Cueto reached in...

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