Embraer to Settle US Brazil Corruption Case for 205 Million Embraer SA

Embraer to Settle U.S., Brazil Corruption Case for $205 Million

The bribes included a $3.52 million payment to a Dominican air force official for a military contract, $1.65 million to a Saudi official and $800,000 in Mozambique. About $5.76 million was paid to an agent in India.

Embraer SA reached agreements with U.S. and Brazilian authorities to settle corruption allegations that have dogged the planemaker since 2011.

Under the settlement, Embraer will pay more than $205 million to resolve accusations that the company violated the Foreign Corrupt Practices Act, according to a statement on Oct. 24 by the U.S. Securities and Exchange Commission.

Embraer earlier set aside $200 million in connection with the probe.

The SEC alleged that Embraer made more than $83 million in profits by paying bribes from a U.S. subsidiary to government officials in the Dominican Republic and several other countries.

The bribes included a $3.52 million payment to a Dominican air force official for a military contract, $1.65 million to a Saudi official and $800,000 in Mozambique. About $5.76 million was paid to “an agent in India,” the SEC said.

Under the settlement, Embraer will pay a $107 million penalty to the U.S. Justice Department as part of a deferred prosecution agreement.

It will pay more than $98 million in disgorgement and interest to the SEC.

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