The Securities and Exchange Commission settled charges on Wednesday with Braskem S.A., a U.S. listed Brazilian-based petrochemical manufacturer that it allegedly hid millions of dollars in illegal bribes paid to Brazilian government officials to win or retain business by falsifying its financial statements, violating the Foreign Corrupt Practices Act. Braskem S.A. will pay $957 million in a global settlement with the SEC, the U.S. Department of Justice, and authorities in Brazil and Switzerland which includes $632 million in criminal penalties and fines. Braskem made approximately $325 million in profits through bribes paid through intermediaries and off-book accounts managed by a private company, Odebrecht S.A., that was Braskem’s largest shareholder. Odebrecht’s then CEO was also chairman of Braskem’s board of directors at the time of the alleged payments. Bribes were paid to a government official at Brazil’s state-controlled petroleum company Petróleo Brasileiro S.A. as well as Brazilian legislators and political party officials. The company must retain an independent corporate monitor for at least three years. The SEC said its investigation is continuing.
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