Jardine Lloyd Thompson Group Holdings Ltd., owned by Marsh & McLennan Companies, Inc., has been told by the DOJ that it will deny the charges and credit $29 million in refunds the company allegedly paid to the UK Serious Fraud Office.
The DOJ has declared, in accordance with its corporate law enforcement policy, Justice Manual (JM) 9-47.120, and Principles for the Federal Prosecution of Business Organizations, JM 9-28.300, that it will decline to prosecute the company. UK-based insurance company for breaching the Foreign Corrupt Practices Act.
The DOJ’s denial letter dated March 18, 2022 said the agency would credit 100% of the $29 million in restitution the company paid to the SFO.
The DOJ uncovered bribes in Ecuador totaling approximately $3.1 million, but declined to pursue legal action under the FCPA, citing self-disclosure, proactive cooperation and corrective actions of the company.
From 2014 through 2016, an employee and agents of Jardine Lloyd Thompson paid approximately $10.8 million to a Florida-based middleman, knowing that approximately $3.1 million would be paid in kickbacks- wine to Ecuadorian government officials, the DOJ said.
The bribes helped Jardine Lloyd Thompson secure and retain contracts with the Ecuadorian state surety company, Seguros Sucre.
According to the DOJ, approximately $1.2 million in bribes were laundered through bank accounts in the United States.
This is the first denial letter issued by the DOJ since World Acceptance Corporation’s denial with restitution in August 2020. The company paid $21.7 million to the SEC in this FCPA resolution, and the DOJ denied continue.
The DOJ has issued its first version with disgorgement in 2016 as part of the pilot program to encourage companies to self-report potential FCPA violations and cooperate with federal investigations.
As part of Jardine Lloyd Thompson’s declination with the DOJ, the company has agreed to continue cooperating with ongoing investigations.