SÃO PAULO—Brazilian aircraft manufacturer
Embraer SA said that it started discussions with the U.S. Justice
Department, for a possible resolution of alleged noncompliance with
the U.S. Foreign Corrupt Practices Act.
The FCPA allegations are the object of a confidential internal
investigation as previously disclosed, according to Embraer.
"A resolution would result in fines and possibly other sanctions
and adverse consequences. We are unable to estimate the duration or
outcome of the discussions with the DOJ," Embraer said in a
statement.
Embraer disclosed in 2011 that it was under investigation in the
U.S. for possible violations of the FCPA, an anticorruption law.
The company, however, didn't unveil details of the cases under
investigation.
In September, The Wall Street Journal reported that Brazilian
authorities had filed a criminal action against eight Embraer SA
employees, accusing them of bribing officials in the Dominican
Republic in return for a $92 million contract to provide the
country's armed forces with attack planes.
The criminal complaint, filed under seal and reviewed by The
Wall Street Journal, marked one of the first known efforts by
Brazil to prosecute its citizens for allegedly paying bribes
abroad, a milestone achieved with help from the Justice department
and the Securities and Exchange Commission.
"The U.S. government inquiries, related inquiries and
developments and our own internal investigation are continuing. We
will continue to cooperate with the DOJ and any other governmental
authorities, as circumstances may require," said the Brazilian
company.
The U.S. agencies also are investigating the company's dealings
in the Dominican Republic and elsewhere and have provided their
Brazilian counterparts with evidence, according to a request last
year for legal assistance from Brazilian prosecutors.
Embraer, one of Brazil's highest-profile companies, is the
world's third-largest commercial-aircraft manufacturer by sales and
employs more than 18,000 people at its plants in Brazil, China,
Portugal, France and the U.S.
Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com
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