Initiation Date:
12/26/2018
Prosecuting Agency: US Securities and Exchange Commission
Name of Prosecuting Attorneys:
Assisting Agencies: U.S. Department of Justice , Federal Bureau of Investigation , Brazilian Federal Prosecution Office (Ministerio Publico Federal) , Brazilian Federal Police
Type of Action: SEC Administrative Proceeding
Origin of the Proceeding: Unknown
Whistleblower: Unknown
Case Status: Resolved
Summary
Country(ies) involved: Brazil
Region(s) involved: Latin America
Sanction to Bribe Ratio: $2,500,000 / $9,000,000 = 27.78 %
Sanction to Revenue Ratio: Not Applicable
Sanction to Profit Ratio: Not Applicable
FCPA Matter Name: Eletrobras' Involvement in Multiple Projects
Number of Related Enforcement Actions (Including This Enforcement Action): 1
Country(ies) involved: Brazil
Region(s) involved: Latin America
Total $ Bribery Payments: $9,000,000
Total $ Revenue Generated from Bribery: Unknown
Total $ Profit Earned or Expenses Avoided from Bribery: Unknown
Total $ Monetary Sanctions (U.S. Sanctions Only): $2,500,000
Sanction to Bribe Ratio: $2,500,000 / $9,000,000 = (27.78 %)
Sanction to Revenue Ratio: Not Applicable
Sanction to Profit Ratio: Not Applicable
Name: Centrais Eletricas Brasileiras S.A.
Entity Type: Public Company
Place of Incorporation: Brazil
HQ Country(ies): Brazil
Industry: Utilities
FCPA Claims: Books & Records, Primary, Issuer (15 U.S.C. § 78m (b)(2)(A)) ; Internal Controls, Primary, Issuer (15 U.S.C. § 78m(b)(2)(B))
Related Claims: None
Statutory Basis for FCPA Jurisdiction: Issuer
Name: Eletrobras Thermonuclear S.A. - Eletronuclear
Entity Type: Subsidiary
Place of Incorporation: Brazil
HQ Country: Brazil
Industry:
Period of Bribery: 2009 - 2015
Total Bribery Payments: $9,000,000
Total Revenue Generated from Bribery: Unknown
Total Profit Earned or Expenses Avoided from Bribery: Unknown
Country(ies) involved: Brazil
Region(s) involved: Latin America
Officials Potentially Influenced (Name; Title; Organization):
Affiliates, Subsidiaries and Joint Ventures Involved in the Misconduct: None/Unknown
Third-Party Intermediary: None/Unknown
Type of Bribe: Money
Cash, Wire or Check: Not Available
Purpose of Bribe: Obtain/retain business
TRANSACTION OVERVIEW
Payments made to Electronuclear officers
Period of Bribery: 2009 – 2015
Total Bribery Payments: $9,000,000
Total Revenue Generated from Bribery: Unknown
Total Profit Earned or Expenses Avoided from Bribery: Unknown
Country(ies) involved: Brazil
Region(s) involved: Latin America
Officials Potentially Influenced (Name; Title; Organization):
- Name Unknown, Officers; Eletrobras Termonuclear S.A;
Affiliates, Subsidiaries and Joint Ventures Involved in the Misconduct: None/Unknown
Third Party Intermediary: None/Unknown
Type of Bribe: Money
Cash, Wire or Check: Not Available
Purpose of Bribe: Obtain/retain business
Misconduct by Subsidiary? Yes
Parent: Centrais Eletricas Brasileiras S.A.
Subsidiary: Eletrobras Thermonuclear S.A. - Eletronuclear
M&A Negotiated or Completed During Misconduct, Investigation, or Resolution? No
Re: Centrais Eletricas Brasileiras S.A.
Mitigating Factors Referenced by the Government (Company Defendants):
| Defendant | Self-Report | Cooperation | Voluntary Remedial Measures | Misconduct Limited to Low Level Individuals | Other factors |
|---|---|---|---|---|---|
| Centrais Eletricas Brasileiras S.A. |
Aggravating Factors Referenced by the Government (Company Defendants):
| Defendant | Insufficient Cooperation | Insufficient Remedial Measures |
|---|---|---|
| Centrais Eletricas Brasileiras S.A. |
Total Monetary Sanctions for the Action: $2,500,000
Case Status: Resolved
Disposition: Cease and Desist Order
Date of Disposition: 12/26/2018
Centrais Eletricas Brasileiras S.A.
— Total Monetary Sanctions for Defendant: $2,500,000
— Compliance Obligation: No
— Reporting Obligation: N/A
— Admission of Guilt/Acceptance of Responsibility: No
| Document Title | Date | Category |
|---|---|---|
| Cease and Desist Order | 12/26/2018 | Resolution |
| Press Release | 12/26/2018 | Resolution |