Settlements

ST-414
Berger Group / Louis Berger International Inc.
Berger Group Holdings Inc.
United States
Department of Justice
India, Indonesia, Kuwait, Vietnam
2015
7/17
Unknown
Legal Person
Criminal
Deferred Prosecution Agreement
Criminal Fine
$17,100,000
$17,100,000
$0
$0
$0
$0
NA
Art.16
Art. 1
Bribery of Foreign Officials
Bribery of Foreign Officials
Yes
According to the US Department of Justice, "Louis Berger International, Inc. a New Jersey-based construction management company admitted to violations of the Foreign Corrupt Practices Act (FCPA) and agreed to pay a $17.1 million criminal penalty to resolve charges that it bribed foreign officials in India, Indonesia, Vietnam and Kuwait to secure government construction management contracts. Two of the company’s former executives also pleaded guilty to conspiracy and FCPA charges in connection with the scheme. [ ] LBI entered into a deferred prosecution agreement (DPA) today and admitted its criminal conduct, including its conspiracy to violate the antibribery provisions of the FCPA. Pursuant to the DPA, LBI has agreed to pay a $17.1 million criminal penalty, to implement rigorous internal controls, to continue to cooperate fully with the department and to retain a compliance monitor for at least three years. Richard Hirsch [ ] and James McClung [ ], each pleaded guilty to one count of conspiracy to violate the FCPA and one substantive count of violating the FCPA. Hirsch previously served as the Senior Vice President responsible for the company’s operations in Indonesia, Thailand, the Philippines and Vietnam. McClung previously served as the Senior Vice President responsible for the company’s operations in India and, subsequent to Hirsch, in Vietnam. [As of April 18, 2016, the sentencing in Mr.Hirsch and Mr. McClung's cases had been set for May 12, 2016.] According to admissions in the DPA and statements in the charging documents, from 1998 through 2010, the company and its employees, including Hirsch and McClung, orchestrated $3.9 million in bribe payments to foreign officials in various countries in order to secure government contracts. To conceal the payments, the co-conspirators made payments under the guise of “commitment fees,” “counterpart per diems,” and other payments to third-party vendors. In reality, the payments were intended to fund bribes to foreign officials who had awarded contracts to LBI or who supervised LBI’s work on contracts." (Source:: US Department of Justice Press Release, "Louis Berger International Resolves Foreign Bribery Charges," July 17, 2015; US v. James McClung, Case No. 15-cr-00357 and US v. Richard Hirsch, Case No. 15-cr-00358 (D. NJ), Court Docket Report as of April 18, 2016.)