The Department of Justice (DOJ) has recently unveiled a significant enforcement action targeting Trafigura Beheer B.V., a Dutch corporation with its headquarters situated in Switzerland, renowned for its stature as one of the world’s leading oil distributors and energy commodities trading groups.
Bribes in Brazil
In a saga that unfolded between approximately 2003 and 2014, Trafigura found itself embroiled in a complex web of collusion with various entities. This collusion aimed to grease the wheels of business with officials associated with Petroleo Brasileiro S.A. – Petrobras, a prominent Brazilian state-owned oil company. The primary objective was to secure favorable contracts and business relationships. Trafigura, along with its co-conspirators, devised a clandestine scheme where bribes, often amounting to 20 cents per barrel of oil products transacted with Petrobras, were clandestinely funneled through intermediaries. This tactic effectively obscured the true nature of these transactions. The cumulative sum of these illicit payments totaled approximately $19.7 million, yielding profits in the realm of $61 million for Trafigura.
Despite the recent revelation of this enforcement action, it’s noteworthy that the DOJ initially lodged a single-count information on December 13, 2023, within the Southern District of Florida. This legal maneuver accused Trafigura of conspiring to contravene the antibribery provisions outlined in the Foreign Corrupt Practices Act (FCPA). The DOJ’s announcement coincided with Trafigura’s concurrence to a plea agreement with the regulatory authority.
Unfortunately, the specifics of this agreement were not readily available upon entry into the Clearinghouse. However, as per the press release disseminated by the DOJ, the company has committed to remit a criminal fine amounting to 127 millions of dollars, alongside forfeiting an additional millions of dollars. Moreover, the DOJ has consented to offsetting up to millions of dollars from the criminal fine against any payments made by a company to resolve concurrent investigations initiated by Brazilian law enforcement agencies, concerning related transgressions.
Acknowledging Trafigura’s initial reticence to cooperate and undertake remedial measures, the DOJ commended the corporation for eventually embracing cooperation and implementing remedial actions deemed sufficient by the regulatory authority. This commendable shift in stance warranted the company a ten percent reduction from the fifth percentile of the applicable sentencing guidelines fine range.
However, the imposition of compliance obligations on Trafigura remains uncertain in the aftermath of this enforcement action.
