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Embraer to Pay $205 million to U.S. Authorities to Settle Charges

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Embraer to Pay $205 million to U.S. Authorities to Settle Charges

Embraer to Pay $205 million to U.S. Authorities to Settle Charges
October 24
14:16 2016

MIAMI — Embraer S.A. has agreed with the U.S. Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC) to resolve civil and criminal charges it allegedly used its U.S.-based subsidiary during May 2008 and February 2011, to pay bribes to foreign government officials in the Dominican Republic, Saudi Arabia, and Mozambique, and to pay millions more in falsely recorded payments in India.

Under the settlement, Embraer will pay $107 million to the DOJ, and enter into a three-year deferred prosecution agreement (DPA), after which period the charges will be dismissed if the Company does not violate the terms of the DPA.

“As alleged in our complaint, Embraer realized significant revenues by surreptitiously using third parties to mask bribes paid to government officials with influence over contracts it was competing to win,” said Andrew J. Ceresney, Director of the SEC Enforcement Division.

The Brazilian company, which admitted to being involved in a conspiracy to violate U.S. anti-bribery laws, will also pay an additional penalty of $98 million to the SEC and $20 million to Brazilian authorities, which will be deducted from its SEC bill, according to a statement from the agency.

Embraer shall also retain an independent corporate monitor for at least three years.

“The company acknowledges responsibility for the conduct of its employees and agents according to the facts ascertained in the investigation. Embraer deeply regrets this conduct. The company has learned from this experience and will be stronger as it moves forward and continues its nearly 50 years of successful existence,” the company said in a statement.

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