Settlements

ST-1
AB Volvo
AB Volvo
United States
Securities and Exchange Commission
Iraq (UN Oil-for-Food)
2008
03/20
Unknown
Legal Person
Civil
Consent to Permanent Injunction
Disgorgement of Profits, Prejudgment Interest, Civil Penalty
$12,602,649.00
NA
$7,299,208
$1,303,441
$4,000,000
$0
Art.16, Art.26
Art. 1, Art. 2, Art. 8
Internal controls violations, Falsification of books and records
No admission or denial of alleged offenses
Yes
According to the June 2011 United States Report to the OECD, "On March 20, 2008, AB Volvo, a Swedish company, entered into a deferred prosecution agreement with the Department of Justice and a settlement agreement with the SEC in connection with payments made by two of its subsidiaries to obtain contracts administered by the United Nations Oil for Food Program (OFFP). The subsidiaries, Renault Trucks SAS (Renault Trucks) and Volvo Construction Equipment AB (VCE), were charged in separate conspiracies to commit wire fraud and violate the books and records provision of the FCPA.According to the court documents, between November 2000 and April 2003, employees and agents of Renault Trucks paid a total of approximately $5 million in kickbacks to the Iraqi government for a total of approximately $61 million worth of contracts with various Iraqi ministries. To pay the kickbacks, Renault Trucks inflated the price of contracts by approximately 10 percent before submitting them to the U.N. for approval and concealed from the U.N. the fact that the contract prices contained a kickback to the Iraqi government. In some cases, Renault Trucks paid inflated prices to companies that outfitted the chassis and cabs produced by Renault Trucks. Those companies then used the excess funds to pay the kickbacks to the Iraqi government on behalf of Renault Trucks. Between December 2000 and January 2003, Volvo Construction Equipment International AB (VCEI), the predecessor to VCE, and its distributors were awarded a total of approximately $13.8 million worth of contracts. During the same time period, employees, agents and distributors of VCEI paid a total of approximately $1.3 million in kickbacks to the Iraqi government by inflating the price of contracts by approximately 10 percent before submitting them to the U.N. for approval. Similar to Renault Trucks, VCE concealed from the U.N. the fact that the contract prices contained a kickback to the Iraqi government." (Source: US Report to the Organisation for Economic Co-operation and Development, "Steps taken to implement and enforce the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions," Information as of May 31, 2011, AB Volvo Case Summary at 82-83.) AB Volvo's settlement agreement with the US SEC is summarized in the SEC Litigation Release No. 20504 / March 20, 2008.