Panalpina, Inc. is a wholly owned subsidiary of Panalpina World Transport (Holding) Ltd., a global holding company located in Basel, Switzerland, whose subsidiaries provide freight forwarding and logistics services. Panalpina, Inc. provides air freight, ocean freight, and supply chain management services primarily to customers in the oil and gas, healthcare, technology, retail, telecommunications, and chemical industries.
From 2002 through 2007, Panalpina World Transport (Holding) Ltd., Panalpina, Inc., and its subsidiaries and affiliates engaged in a scheme to pay bribes to foreign officials on behalf of its customers in the oil and gas industry. The bribes were made in order to expedite the customs clearance process, avoid fines and penalties, and to circumvent the rules and regulations relating to the import of goods and materials into numerous foreign jurisdictions. Panalpina World Transport (Holding) Ltd., Panalpina, Inc., and its subsidiaries and affiliates would invoice its customers for the bribes. The invoices, which contained both legitimate and illegitimate charges, concealed the bribes by inaccurately referring to them as "local processing," "special intervention," "special handing," and other seemingly legitimate fees.
On November 4, 2010, the SEC filed a complaint against Panalpina, Inc., charging the company with violating the anti-bribery provisions of the FCPA and aiding and abetting violations of the anti-bribery, books and records, and internal controls provisions of the FCPA. At the same time, Panalpina, Inc. consented to the entry of a final judgment permanently enjoining the company from future violations of the FCPA. Panalpina Inc. was ordered to pay $11,329,369 in disgorgement.
In a related action, Panalpina, Inc. entered into a guilty plea with the DOJ, and agreed to pay a $70,560,000 penalty.
