Samsung Heavy Industries Co. Ltd. ("Samsung"), headquartered in the Republic of Korea, was an engineering company that provided shipbuilding, offshore platform construction, and other construction and engineering services. Samsung maintained offices in several countries around the world, including a branch office in Houston, Texas.
According to the documents in this case, between 2007 and 2013, Samsung conspired to pay approximately $20 million in commission payments to a Brazilian intermediary, knowing that portions of the money would be paid as bribes to officials at Petrobras, Brazil's national oil company. The payments were made in connection with a drill ship that Samsung was selling to a Houston-based offshore oil drilling company. Samsung understood that the Houston company would only exercise its option to purchase the drill ship if it secured a contract with Petrobras. Consequently, the payments Samsung directed to the Petrobras officials were made in order to cause Petrobras to enter into a contract to charter the drill ship. That contract was obtained.
On November 22, 2019, the DOJ filed a single count Information in the Eastern District of Virginia against Samsung alleging conspiracy to violate the anti-bribery provisions of the FCPA. On the same date, Samsung and the DOJ entered into a deferred prosecution agreement with a term of three years. Under the terms of the DPA, Samsung agreed to pay a criminal penalty of $75,481,600, 50 percent ($37,740,800) of which would be paid to the U.S. and 50 percent ($37,740,800) of which would be paid to Brazilian authorities or the U.S. if the payments to Brazil were not made on or before November 25, 2020. Additionally, Samsung agreed to enhance its anti-corruption compliance policies and procedures and report on their implementation to the DOJ for three years. In agreeing to the DPA, the DOJ cited Samsung's cooperation and remediation; however, the DOJ also noted that Samsung did not receive credit for voluntary disclosure and it received only partial cooperation credit because the company failed to meet deadlines imposed by the DOJ which caused a delay in reaching a resolution.
