Colombian Conglomerate Grupo Aval and Its Bank Subsidiary to Pay $40 Million to Settle FCPA Violations
Grupo Aval Acciones y Valores S.A. and subsidiary Corficolombiana bribed Colombian officials to secure a highway contract extension, resulting in a $40 million SEC settlement.
Grupo Aval and Corficolombiana were charged with FCPA violations for bribing Colombian officials, involving at least $28 million in illicit payments and a $32 million improper benefit to Grupo Aval. Grupo Aval agreed to pay $40 million to settle SEC charges. Corficolombiana also agreed to pay over $20 million to settle related DOJ criminal charges.
The SEC charged Grupo Aval Acciones y Valores S.A. and its subsidiary Corficolombiana with violating the Foreign Corrupt Practices Act (FCPA) for bribing Colombian government officials to secure an extension to a 328-mile highway infrastructure contract. The bribery involved at least $28 million in illicit payments, facilitated through fraudulent invoices and poorly documented services, with the knowledge and approval of Corficolombiana's former president. This resulted in an improper financial benefit of approximately $32 million to Grupo Aval. Grupo Aval agreed to pay $40 million to settle the SEC's civil charges, while Corficolombiana agreed to pay over $20 million to settle related criminal charges with the DOJ. Both companies consented to a cease-and-desist order for FCPA violations, with Corficolombiana also entering a deferred prosecution agreement with the DOJ. The SEC credited both companies for their cooperation and remediation efforts, highlighting the importance of robust internal controls over third-party payments.
Exhibits & Attached Documents (1)
Extracted insights
- $40.00M $40 million $10M–$100M
- $32.00M $32 million $10M–$100M
- $28.00M $28 million $10M–$100M
- $20.00M $20 million $10M–$100M
- agency deferred prosecution agreement with the u.s. department of justice
- person grupo aval
- agency Securities and Exchange Commission
- Securities And Exchange Commission charged Grupo Aval Acciones Y Valores S.A.
- Securities And Exchange Commission charged Corporación Financiera Colombiana S.A.
- Grupo Aval agreed to pay $40 million
- Corficolombiana won contract from the Colombian government
- Corficolombiana bribed government officials in Colombia
- Corficolombiana provided Grupo Aval with an improper financial benefit totaling approximately $32 million
- Grupo Aval consented to cease-and-desist order
- Corficolombiana consented to cease-and-desist order
- Corficolombiana agreed to enter into deferred prosecution agreement with the U.S. Department Of Justice
- Corficolombiana agreed to pay more than $20 million
The Securities and Exchange Commission today charged Colombian conglomerate Grupo Aval Acciones y Valores S.A., aka Grupo Aval S.A., and its bank subsidiary, Corporación Financiera Colombiana S.A. (Corficolombiana), with violating the Foreign Corrupt Practices Act (FCPA). Grupo Aval, whose shares are traded on the New York Stock Exchange, agreed to pay $40 million to settle the SEC charges. According to the SEC’s order, Corficolombiana and a joint venture partner won a contract from the Colombian government for a 328-mile highway infrastructure project in Colombia. The SEC alleges that Corficolombiana, through its former president and with the joint venture partner, bribed government officials in Colombia to win an extension to the contract. At least $28 million in illicit payments were paid with the knowledge, approval, and assistance of Corficolombiana’s former president. According to the SEC’s order, Corficolombiana caused Grupo Aval’s violations and provided Grupo Aval with an improper financial benefit totaling approximately $32 million. “Lax control environments are fertile ground for mischief, as illustrated here where bribes were funded through payments made for invoices lacking supporting documentation and contracts for vaguely described services typically handled internally rather than by third parties,” said Charles Cain, the SEC’s FCPA Unit Chief. “This case once again highlights the importance of issuers having sufficient internal accounting controls over third-party payments.” Grupo Aval and Corficolombiana consented to a cease-and-desist order finding that they violated the accounting provisions and, in the case of Corficolombiana, the anti-bribery provisions of the FCPA. In determining to accept the offer, the SEC considered Grupo Aval’s cooperation and remediation. Corficolombiana also agreed to enter into a deferred prosecution agreement with the U.S. Department of Justice and to pay more than $20 million to settle criminal charges. The SEC’s investigation was conducted by Ernesto Palacios, Maria F. Boodoo, and Thierry Olivier Desmet of the SEC’s FCPA Unit, with assistance from James Connor. The SEC acknowledges the assistance of the Colombian Superintendent of Industry and Commerce.
The Securities and Exchange Commission today charged Colombian conglomerate Grupo Aval Acciones y Valores S.A., aka Grupo Aval S.A., and its bank subsidiary, Corporación Financiera Colombiana S.A. (Corficolombiana), with violating the Foreign Corrupt Practices Act (FCPA). Grupo Aval, whose shares are traded on the New York Stock Exchange, agreed to pay $40 million to settle the SEC charges. According to the SEC’s order, Corficolombiana and a joint venture partner won a contract from the Colombian government for a 328-mile highway infrastructure project in Colombia. The SEC alleges that Corficolombiana, through its former president and with the joint venture partner, bribed government officials in Colombia to win an extension to the contract. At least $28 million in illicit payments were paid with the knowledge, approval, and assistance of Corficolombiana’s former president. According to the SEC’s order, Corficolombiana caused Grupo Aval’s violations and provided Grupo Aval with an improper financial benefit totaling approximately $32 million. “Lax control environments are fertile ground for mischief, as illustrated here where bribes were funded through payments made for invoices lacking supporting documentation and contracts for vaguely described services typically handled internally rather than by third parties,” said Charles Cain, the SEC’s FCPA Unit Chief. “This case once again highlights the importance of issuers having sufficient internal accounting controls over third-party payments.” Grupo Aval and Corficolombiana consented to a cease-and-desist order finding that they violated the accounting provisions and, in the case of Corficolombiana, the anti-bribery provisions of the FCPA. In determining to accept the offer, the SEC considered Grupo Aval’s cooperation and remediation. Corficolombiana also agreed to enter into a deferred prosecution agreement with the U.S. Department of Justice and to pay more than $20 million to settle criminal charges. The SEC’s investigation was conducted by Ernesto Palacios, Maria F. Boodoo, and Thierry Olivier Desmet of the SEC’s FCPA Unit, with assistance from James Connor. The SEC acknowledges the assistance of the Colombian Superintendent of Industry and Commerce.