Goodyear Charged with FCPA Violations

March 10, 2015 — The Foreign Corrupt Practices Act (FCPA) is a powerful weapon to stop corporations from attempting to win or retain business abroad by making bribe payments to or bestowing lavish gifts on foreign government officials or their family members. Since the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 instituted a whistleblower program, anyone can collaborate with the government by notifying the Justice Department or the Securities and Exchange Commission (SEC) about foreign bribery operations. Dodd-Frank allows for substantial financial rewards to insider informants who blow the whistle on FCPA violations.

Goodyear Resolves Foreign Bribery Charges in Kenya and Angola for $16 Million

Goodyear Tire & Rubber Company has been charged by the SEC with FCPA violations in Kenya and Angola. To resolve the charges, Goodyear will pay over $16 million.
Over a period of four years, Goodyear reportedly neglected to prevent or uncover more than $3.2 million in cash bribes to local officials in Africa and to employees of private companies as well. Goodyear’s subsidiaries in Africa failed to adopt adequate internal FCPA compliance controls to detect the bribes.
The subsidiary in Kenya bribed employees with a number of public and private entities, including the following:
  • Kenyan Air Force;
  • Kenya Ports Authority;
  • Ministry of Roads;
  • Armed Forces Canteen Organization;
  • Ministry of State for Defense;
  • East African Portland Cement Co.;
  • Nzoia Sugar Company; and
  • Telkom Kenya Ltd.
In Angola, Goodyear’s subsidiary paid bribes to representatives of the following:
  • Catoca Diamond Mine (held by a mining consortium that includes Endiama E.P., Angola’s national mining company, and ALROSA, a Russian mining company);
  • Engevia Construction and Public Works;
  • Electric Company of Luanda;
  • UNICARGAS;
  • National Service of Alfadega; and
  • Sonangol.
Goodyear will disgorge $14,122,525 — the amount of its illicit profits in Kenya and Angola. Kenya must also pay 2,105,540 in prejudgment interest.

Contact Us to Notify Government about FCPA Violations

While Waters & Kraus is not handling this particular FCPA case, we are representing whistleblowers in similar matters involving foreign bribery violations. If you have comparable claims against your employer or another business, contact us by email or call our qui tam attorneys at 800.226.9880to learn more about our practice and how we can collaborate with the government to redress illegal foreign bribery schemes. Our experienced lawyers, such as Loren Jacobson and Caitlyn Silhan in the firm’s Texas office, are working to level the playing field in international business operations.

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