Corporate Crime Case Database
Consistent with the Department’s ongoing commitment to transparency in corporate crime cases, the DOJ launched a new case database. While it is still in the process of being populated, it will eventually contain the significant, relevant cases from each component and U.S. Attorney’s Office, resolved since the beginning of 2023.
United States v. Clipper Shipping A.S.
On July 6, 2023, a court sentenced Clipper Shipping A.S. after accepting its guilty plea. The company will pay a $1.5 million fine and complete a four-year term of probation to include implementing an environmental compliance plan with third party monitoring. Clipper Shipping admitted to violating the Act to Prevent Pollution from Ships for failing to maintain an accurate Oil Record Book (33 U.S.C. § 1908).
On October 28, 2021, a crewmember from the M/T Clipper Saturn gave a Coast Guard inspector a digital file that contained evidence of illegal bilge water discharges. Further investigation revealed that the vessel’s Chief Engineer ordered the crew to transfer bilge water into the gray water tank. The crew then used the emergency eductor system to illegally discharge the gray water tank contents. The Chief Engineer that ordered the illegal activity was not on the vessel when it arrived in Houston on October 28, 2021.
The U.S Coast Guard Sector Houston/Galveston and the Coast Guard Investigative Service conducted the investigation.
U.S. v. F. Allied Construction Company, Inc., et al.
F. Allied Construction Company, Inc., Andrew Foster, and Kevin Shell each pleaded guilty to two counts of entering into and engaging in a combination and conspiracy to suppress and eliminate competition by agreeing to rig bids for contracts to provide asphalt paving services in the state of Michigan. Count One charged a conspiracy that began at least as early as June 2013 and continued until at least as late as June 2019. Count Two charged a separate conspiracy that began at least as early as July 2017 and continued until at least as late as May 2021.
United States v. Empire Bulkers Ltd., et al.
On January 19, 2023, a court sentenced. Empire Bulkers Ltd., and Joanna Maritime Limited. Each will pay $2 million ($1 million each) and serve four years of probation subject to the terms of a government approved environmental compliance plan to include independent ship audits and supervision by a court-appointed monitor. The companies pleaded guilty to violating APPS and the Ports and Water Ways Safety Act (PWSA) (33 U.S.C. § 1908; 46 U.S.C. § 70036).
Empire operated the MV Joanna, a Marshall Islands registered Bulk Carrier, owned by Joanna Maritime. Between October 25, 2020, and March 11, 2021, the crew tampered with onboard pollution prevention equipment, and falsified entries in the ship’s oil record book. The Coast Guard found that the crew bypassed the ship’s Oily Water Separator by inserting a piece of metal into the Oil Content Meter so that it only detected clean water instead of what they actually discharged overboard.
The defendants also violated the PWSA by failing to immediately report a hazardous situation onboard the ship. During an inspection, the Coast Guard discovered an active fuel oil leak in the ship’s purifier room that resulted from disabling the fuel oil heater pressure relief valves, an essential safety feature designed to prevent catastrophic fires and explosions.
United States v. ABC Polymer Industries, LLC
On January 24, 2023, a court sentenced ABC Polymer Industries, LLC to pay a $167,928 fine, and $242,928 in restitution. The company also will complete a two-year term of probation, to include implementing an Occupational Safety and Health Administration (OSHA) workplace safety compliance plan. The company causing the death of an employee by violating OSHA standards (29 U.S.C. § 666(e)).
ABC Polymer manufactured plastic sheets using assembly lines that pulled the plastic through clusters of large spinning rollers. The machine at issue posed a hazard due to moving roller “pinch points.” OSHA requires this type of machinery to employ guards while the machine is energized. To save time, however, the company, routinely caused employees to run the machine without a proper guard when the rollers were moving. Supervisors instructed the operators to reach between or near the roller drums to cut tangles in the plastic sheet without stopping the line, allowing production to continue.
Despite knowing the machine previously hurt other workers who used it without a proper guard in place, ABC Polymer assigned the victim and others to cut tangles out of plastic sheeting from among the machine’s unguarded spinning rollers with a hand tool. The victim died in August 2017, after becoming entangled in the spinning rollers. The company had a history of nearly two dozen prior injuries from the rollers, including two amputations and multiple other serious injuries requiring hospitalization.
United States v. Hakan Adro DMCC, et al.
On January 5, 2023, prosecutors unsealed an indictment charging two Dubai entities and several individuals for their roles in a multimillion-dollar scheme to export non-organic grain into the United States to be sold as certified organic.
Hakan Agro DMCC and Hakan Organics DMCC, both based in Dubai, and Goksal Beyaz, Nuray Beyaz, and Mustafa Cakiroglu, all of Turkey, were each charged with conspiracy, smuggling, and wire fraud (18 U.S.C. §§ 2, 371, 545, 1343).
Between November 2015 and May 2017, the defendants operated a scheme where Hakan Agro, Hakan Organics, and associated entities purchased non-organic soybeans and corn from Eastern Europe before shipping to the United States as “organic.” This scheme allowed the defendants to charge as much as 50% more for organic grains.
United States v. Amadou Kane Diallo
A California businessman was charged for allegedly soliciting investments under false pretenses and using investors’ funds to support his own lavish lifestyle. He was charged with 19 counts of wire fraud and two counts of money laundering.
U.S. v. J & J Korea, Inc.
South Korean company J&J Korea, Inc. pleaded guilty and was sentenced for its role in a bid-rigging and fraud scheme involving repair and maintenance subcontract work at U.S military hospitals in South Korea. The subcontract work related to a U.S. Army Corps of Engineers (USACE) contract providing for operation and maintenance support services at U.S. military facilities around the world. The contract required the prime contractor to use a competitive bidding process when awarding subcontract work under the contract. However, the defendant and its co-conspirator, another South Korean company, agreed to submit rigged bids to ensure that the defendant won most of the subcontract work in South Korea under the USACE contract.
United States v. IRB Brasil Resseguros SA
On April 24, 2023, the Department of Justice, Criminal Division, Fraud Section announced a corporate resolution with IRB, which will consist of an NPA with self-reporting and $45 million in victim compensation. The CFO of Brazilian reinsurance company IRB, together with other IRB employees, enacted a scheme to mislead investors about Berkshire Hathaway’s purported investments in IRB. When the scheme was revealed, IRB’s stock price dropped by approximately 30% and caused tens of millions in shareholder losses.
Monetary Amounts and Key Terms:
- Non-Prosecution Agreement – enhanced compliance self-reporting
- $0 – Fine
- No fine based upon inability to pay ($45,000,000 otherwise)
- $5,000,000 – Victim Compensation Payment
- On April 24, 2023, the Department of Justice, Criminal Division, Fraud Section announced a corporate resolution with IRB, which will consist of an NPA with self-reporting and $45 million in victim compensation. The CFO of Brazilian reinsurance company IRB, together with other IRB employees, enacted a scheme to mislead investors about Berkshire Hathaway’s purported investments in IRB. When the scheme was revealed, IRB’s stock price dropped by approximately 30% and caused tens of millions in shareholder losses.
- Monetary Amounts and Key Terms:
- Non-Prosecution Agreement – enhanced compliance self-reporting
- $0 – Fine
- No fine based upon inability to pay ($45,000,000 otherwise)
- $5,000,000 – Victim Compensation Payment
- Amount reduced based upon inability to pay ($45,000,000 otherwise)
- $0 – Fine
- Global Resolution?: No
- Total Global Monetary Amounts: $5,000,000 (DOJ MIMF)
- Total U.S. Monetary Amounts: $5,000,000
- U.S. Criminal Monetary Amounts: $5,000,000
- Non-Prosecution Agreement – enhanced compliance self-reporting
- Monetary Amounts and Key Terms:
- Amount reduced based upon inability to pay ($45,000,000 otherwise)
- On April 24, 2023, the Department of Justice, Criminal Division, Fraud Section announced a corporate resolution with IRB, which will consist of an NPA with self-reporting and $45 million in victim compensation. The CFO of Brazilian reinsurance company IRB, together with other IRB employees, enacted a scheme to mislead investors about Berkshire Hathaway’s purported investments in IRB. When the scheme was revealed, IRB’s stock price dropped by approximately 30% and caused tens of millions in shareholder losses.
- $0 – Fine
- Global Resolution?: No
- Total Global Monetary Amounts: $5,000,000 (DOJ MIMF)
- Total U.S. Monetary Amounts: $5,000,000
- U.S. Criminal Monetary Amounts: $5,000,000
U.S. v. BNL Technical Services
Defendant, a Hanford Site subcontractor, falsely claimed more than $1.4 million in CARES Act funding and then distributed it to the owner. Defendant company and individual were indicted on 14 counts of fraud.
United States v. Rishi Shah et al.
Following an 11-week trial, the former CEO, President, and CFO/COO of Outcome Health, a Chicago-based advertising company, were convicted of mail, wire, and bank fraud in connection with a $1 billion corporate fraud scheme targeting the company's clients, lenders, and investors.
United States v. Craig Perciavalle et al.
Craig Perciavalle, Joseph Runkel, and Wiliam Adams, all former executives and employees of Austal USA, a ship builder, were charged with conspiracy and wire fraud in connection with an accounting fraud scheme that falsely overstated the revenue that Austal was earning from ships it was buidling for the U.S. Navy.
United States v. Telefonaktiebolaget LM Ericsson
- In 2019, the defendant (Ericsson) entered into a deferred prosecution agreement (DPA) for using third-party agents and consultants to make bribe payments to government officials and to manage off-the-books slush funds in Djibouti, China, Vietnam, Indonesia, and Kuwait, in violation of the Foreign Corrupt Practices Act (FCPA).
- Following the 2019 resolution, Ericsson breached the DPA by failing to truthfully disclose all factual information and evidence related to the Djibouti scheme, the China scheme, and other potential violations of the FCPA’s anti-bribery or accounting provisions. Ericsson also failed to promptly report and disclose evidence and allegations of conduct related to its business activities in Iraq that may constitute a violation of the FCPA.
- In 2023, Ericsson agreed to plead guilty to the original charges deferred by the 2019 DPA: one count of conspiracy to violate the anti-bribery provisions of the FCPA and one count of conspiracy to violate the internal controls and books and records provisions of the FCPA. Ericsson was required to serve a term of probation through June 2024 and agreed to a one-year extension of the independent compliance monitor. The plea agreement also required Ericsson to pay an additional criminal penalty of $206,728,848 – which includes the elimination of any cooperation credit originally awarded pursuant to the DPA.