DOJ declines to prosecute Safran over alleged FCPA violations


The U.S. Department of Justice (DOJ) on Dec. 21 informed the legal representatives of French aircraft equipment manufacturer Safran that the company would not face prosecution regarding alleged bribes paid by employees to a China-based consultant.

The agency’s declination letter published on its website acknowledged Safran’s cooperation in its investigation and agreement to disgorge more than $17 million in profits allegedly obtained through corrupt means among reasons for its decision. The determination is the second of its kind by the DOJ this year, after the agency in March informed Jardine Lloyd Thompson Group Holdings it would similarly avoid prosecution under the Foreign Corrupt Practices Act (FCPA).

The DOJ said Safran violated the FCPA when representatives of its U.S. subsidiary Monogram Systems and German subsidiary EVAC GmbH “paid millions of dollars to a China-based business consultant who was a close relative of a then-senior Chinese government official.” The subsidiaries knew the money would be used to bribe the official to obtain train lavatory contracts with the Chinese government, according to the DOJ.

lock iconTHIS IS MEMBERS-ONLY CONTENT. To continue reading, choose one of the options below.