AAR Corp. was a provider of aviation products and services based in Illinois. The company’s common stock was registered with the SEC and traded on the New York Stock Exchange under the ticker symbol AIR.
Deepak Sharma was President of International Supply Chain for a wholly owned AAR subsidiary, which according to independent research by the Clearinghouse was likely AAR International, Inc.
According to the documents in this case, between 2015 through 2020, Sharma engaged in bribery schemes in Nepal and South Africa. In Nepal, he orchestrated and implemented a bribery scheme to win a contract for the sale of two Airbus A330 aircraft, valued at approximately $210 million, to Nepal Airlines, a government-owned airline. The SEC’s order finds that, as part of the scheme, AAR retained a third-party agent to pay bribes to officials who had control over the contract. In South Africa, Sharma was involved in a bribery scheme involving a contract for AAR to provide aviation services to a subsidiary of government-owned South African Airways. In all, AAR paid millions of dollars in bribes to Nepalese and South African officials as part of the two schemes. Sharma was paid $130,835 in compensation in connection with the schemes.
In a settled administrative proceeding initiated on December 19, 2024, the SEC ordered Sharma to cease and desist violations of the anti-bribery, books and records, and internal controls provisions of the FCPA. Under the terms of the settlement, Sharma agreed to pay disgorgement of $130,835 plus prejudgment interest of $53,762. The SEC determined that a civil penalty was unnecessary in light of Sharma's guilty plea in the DOJ's parallel proceeding, and the SEC further deemed that his forfeiture of $130,835 in the DOJ proceeding would satisfy the disgorgement (though not the interest) in the SEC proceeding. The SEC noted Sharma's cooperation.
In a related proceeding initiated on June 24, 2024, the DOJ filed a single count information under seal in the District of Columbia against Sharma alleging a conspiracy to violate the antibribery provisions of the FCPA. The court unsealed the case on August 1, 2024 in connection with a plea agreement filed that day. Sanctions have not yet been determined, so this case is ongoing.
