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 | Enforcement Action Dataset

Stanford Foreign Corrupt Practices Act Clearinghouse a Collaboration with Sullivan & Cromwell LLP

Enforcement Action Dataset

 
In the Matter of Centrais Eletricas Brasileiras S.A. · Eletrobras' Involvement in Multiple Projects

Case Information

In the Matter of Centrais Eletricas Brasileiras S.A.

Related FCPA Matter:   Eletrobras' Involvement in Multiple Projects Information

Case Information

Initiation Date:    12/26/2018  Information

Prosecuting Agency:    U.S. Securities and Exchange Commission

Type of Action:    SEC Administrative Proceeding

Docket or Case Number:    3-18962

Name of Prosecuting Attorneys:   

  • Ernesto Palacios, Senior Counsel, FCPA Unit
  • Thierry Olivier Desmet, Assistant Director, FCPA Unit, SEC Miami
  • Kathleen Strandell, SEC Miami Regional Office

US Assisting Agencies:   

  • U.S. Department of Justice
  • Federal Bureau of Investigation

Foreign Enforcement Action/Investigation:    Unknown

Foreign Assistance:   

  • Brazilian Federal Prosecution Office (Ministerio Publico Federal) (BR)
  • Brazilian Federal Police (Departamento de Policia Federal) (BR)

Origin of the Proceeding:    Unknown

Whistleblower:    Unknown

Case Status:    Resolved


Summary  Information

Centrais Eletricas Brasileiras S.A. (“Eletrobras”) was a Brazilian power generation, transmission and distribution company whose shares were registered with the SEC and traded on the New York Stock Exchange. The Brazilian government owned a 51% stake in Eletrobras and appointed a majority of Eletrobras’s board members.

Eletrobras Termonuclear S.A (“Eletronuclear”) was Eletrobras’s majority-owned nuclear power generation subsidiary.

According to the documents in this case, from approximately 2009 until 2015, former officers at Eletronuclear engaged in a bid-rigging and bribery scheme connected to the construction of a nuclear power plant. Under the scheme, private Brazilian construction companies paid bribes through inflated contracts to the Eletronuclaer officers in order to obtain the contracts for the power plant's construction. In all, the construction companies involved paid the former Eletronuclear officers approximately $9 million.

In a settled administrative proceeding initiated on December 26, 2018, the SEC ordered Eletrobras to cease and desist violations of the books and records and internal controls provisions of the FCPA. Additionally, the SEC ordered Eletrobras to pay a civil fine of $2.5 million.

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