Asset Recovery Watch

ARW-82
IBM / Banco de la Nacion Officials (Alfredo Adaco, Mario Dadone, Genaro Contartese, Hugo Gaggero)
Argentina
Officials of State Owned Enterprise
United States
Location of Recovery Effort, Asset Location / Alleged Asset Location
1997
Art.16, Art.23
Yes
Other
No
NA
Unspecified (Commercial settlement)
Completed
No
NA

This case concerns the bribery paid in 1994 by IBM's Argentine subsidiary to Banco de la Nacion officials to secure a contract with the bank. After litigation, IBM agreed to reimburse Banco de la Nacion $34 million in losses. (Source: "Argentina: IBM to Reimburse U.S. $34 mil to Banco Nacion," South American Business Information, November 10, 1997, cited in Wlimer, Cutler and Pickering, "Foreign Corrupt Practices Act Updates IBM Consents to Civil Penalty and SEC Cease and Desist Order Based on Argentine Bribe Scandal," January 12, 2001.) According to an Argentine attorney knowledgeable about the case, this is the first case in Argentina of a plea agreement in a criminal action involving public officials and corruption. In 2009, the officials agreed to the plea deal, but once it was approved by the court, they appealed it as their final sentence, on statute of limitations grounds. As of November 17, 2010, nearly 16 years after the bribery, the case was on appeal in the Argentine Supreme Court.

According to an Argentine attorney familiar with the case of Banco de la Nacion officials, as of November 2010, their appeal was pending before the Argentine Supreme Court. (Source: StAR researcher phone interview, November 2010). For information on IBM's U.S. cases, please see Shearman & Sterling law firm's Foreign Corruption Practices Act database at http://fcpa.shearman.com/index.php.

Unspecified (Commercial settlement)
Ministerio Publico Procuracion General de la Nacion
Cámara de Casación penal.
U.S. Department of Justice, Securities and Exchange Commission
U.S. Department of Justice, Securities and Exchange Commission
U.S. District Court for the District of Columbia