Panalpina World Transport (Holding) Ltd. is a Swiss corporation headquartered in Basel, Switzerland, which provided global freight forwarding and logistics services in approximately 160 jurisdictions through a network of local subsidiaries, including Panalpina, Inc. (a U.S. subsidiary), Panalpina Nigeria, Panalpina Angola, Panalpina Brazil, Panalpina Azerbaijan, Panalpina Kazakhstan, Panalpina Russia, Panalpina Turkmenistan, and other affiliated companies.
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 collectively paid bribes to foreign officials valued at approximately $49 million. Payments made on behalf of Panalpina's U.S. customers and their foreign subsidiaries accounted for approximately $27 million of these bribe payments.
On August 4, 2010, the DOJ filed a criminal Information in the Southern District of Texas, charging Panalpina World Transport (Holding) Ltd. with conspiracy to violate the anti-bribery provisions of the FCPA, violating the anti-bribery provisions of the FCPA, and aiding and abetting violatons of the FCPA. At the same time, the DOJ entered into a three year deferred prosecution agreement with Panalpina World Transport (Holding) Ltd. Under the DPA, Panalpina World Transport (Holding) Ltd. agreed to pay a penalty of $70,560,000, but under the terms of the DPA, any criminal penalty that is imposed by the Court and paid by Panalpina Inc. in connection with its guilty plea and plea agreement, will be deducted from the $70,560,000 fine.
In a related action, without admitting or denying the SEC's allegations, 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.
