Braskem, S.A., a corporation headquartered and incorporated in Brazil, was the largest petrochemical company in the Americas, with significant interests in the petrochemical and thermoplastic products industries. Braskem's shares were registered with the SEC and traded on the New York Stock Exchange.
Odebrecht S.A., a Brazilian conglomerate that conducted business in a variety of industries, indirectly owned 38.1% of the total shares of Braskem and controlled the company through its ownership of 50.11% of the voting shares. At the time, Odebrecht had established a standalone division within the company called the Division of Structured Operations that, according to the the DOJ, was used primarily for the payment of bribes around the world.
Petroleo Brasileiro S.A. ("Petrobras") was Brazil's state-controlled oil company, and it owned 36.1% of the shares of Braskem.
Jose Carlos Grubisich, a Brazilian citizen, served as the Chief Executive Officer of Braskem from 2002 to 2008 and as a member of Braskem's Board of Directors from 2010 to 2012. Grubisich also worked in various capacities for Odebrecht, including as CEO of ETH Bioenergia S.A., Odebrecht's ethanol business, from 2008 to 2012 and as a consultant for Odebrecht from 2012 to 2015.
According to the documents in this case, between 2002 and 2014, Grubisich and others, including former Braskem and Odebrecht employees, conspired to engage in a widespread bribery and money laundering scheme that resulted in the diversion of approximately $250 million of Braskem’s funds into a secret slush fund, which was used, in part, to pay bribes to government officials, including an executive at Petrobras and an official in the legislative branch of Brazil's government, as well as political parties and others in Brazil to obtain and retain business for Braskem. Grubisich was allegedly involved in negotiating and approving the bribes using money from the slush fund. The documents further allege that Grubisich agreed to falsify Braskem’s books and records to conceal the nature of the payments.
On February 27, 2019, the DOJ filed a sealed three count indictment in the Eastern District of New York against Grubisich alleging conspiracy to violate the anti-bribery and books and records provisions of the FCPA as well as conspiracy to commit money laundering. Though the indictment was initially filed under seal, the DOJ announced the indictment on November 20, 2019, following the arrest of Grubisich. According to a DOJ press release, Grubisich pled guilty on April 15, 2021, and one day later, the court ordered Grubisich to forfeit $2,242,435. On October 12, 2021, the court sentenced Grubisich to 20 months in prison to be followed by one year of supervised release, and the court further ordered him to pay a $1 million fine.
