Petrochemical Manufacturer Braskem S.A. to Pay $957 Million to Settle FCPA Charges
Braskem S.A., a Brazilian petrochemical manufacturer, agreed to pay $957 million to settle SEC, DOJ, and international charges for falsifying books and records to conceal $325 million in bribes paid to Brazilian officials over eight years, including through off-book accounts managed by its largest shareholder.
Braskem S.A. agreed to a $957 million global settlement with the SEC, U.S. Department of Justice, and authorities in Brazil and Switzerland for creating false books and records to conceal $325 million in illicit bribes paid to Brazilian government officials, including those at Petrobras and political parties, over an eight-year period. The company paid $325 million in disgorgement—$65 million to the SEC and $260 million to Brazilian authorities—and more than $632 million in criminal penalties and fines, while agreeing to retain an independent corporate monitor for at least three years. The misconduct, facilitated through intermediaries and off-book accounts managed by Braskem’s largest shareholder, was uncovered through coordinated investigations across three countries, and the SEC’s FCPA probe remains ongoing.
Braskem S.A., a Brazilian petrochemical manufacturer whose stock trades in U.S. markets, agreed to a $957 million global settlement with the SEC, U.S. Department of Justice, and authorities in Brazil and Switzerland to resolve charges of falsifying books and records to conceal $325 million in illicit bribes paid to Brazilian government officials over an eight-year period. The bribes, funneled through intermediaries and off-book accounts managed by Braskem’s largest shareholder, were directed to officials at Brazil’s state-controlled petroleum company Petrobras, as well as legislators and political party figures, generating unlawful profits. As part of the settlement, Braskem paid $325 million in disgorgement—$65 million to the SEC and $260 million to Brazilian authorities—and over $632 million in criminal penalties and fines, while agreeing to retain an independent corporate monitor for at least three years. The SEC’s complaint emphasized that Braskem lacked adequate internal controls to prevent the misuse of third parties and off-book financial channels. The investigation was a coordinated international effort involving the U.S., Brazil, and Switzerland, with key contributions from the FBI, Brazilian Federal Police, and Swiss authorities. The SEC’s FCPA Unit, led by Kara Brockmeyer and led by investigators Ernesto Palacios and Thierry Olivier Desmet, spearheaded the enforcement action, which remains ongoing. The resolution underscores the global reach of anti-bribery enforcement and the consequences for corporations that exploit opaque financial structures to corruptly secure business advantages.
Extracted insights
- $957.00M $957 million $100M–$1B
- $632.00M $632 million $100M–$1B
- $325.00M $325 million $100M–$1B
- $260.00M $260 million $100M–$1B
- $65.00M $65 million $10M–$100M
- agency $65 million to the sec
- organization Braskem S.A.
- organization Brazilian Federal Police
- organization Brazilian Federal Prosecution Service
- person David S. Johnson
- organization Department of Justice
- organization Department Of Justice Criminal Division’s Fraud Section
- person Ernesto Palacios
- organization Federal Bureau of Investigation
- person Fernando Torres
- person Kara Brockmeyer
- organization Office Of The Attorney General In Switzerland
- organization Securities and Exchange Commission
- person stephanie avakian
- person Thierry Olivier Desmet
- Braskem S.A. Agreed To Pay $957 Million
- Braskem S.A. Agreed To Pay $325 Million In Disgorgement
- Braskem S.A. Agreed To Pay $65 Million To The SEC
- Braskem S.A. Agreed To Pay $260 Million To Brazilian Authorities
- Braskem S.A. Agreed To Pay More Than $632 Million In Criminal Penalties And Fines
- Braskem S.A. Created False Books And Records To Conceal Millions Of Dollars In Illicit Bribes
- Braskem S.A. Lacked Internal Controls To Prevent Use Of Third Parties And Off‑Book Accounts For Bribes
The Securities and Exchange Commission today announced that a Brazilian-based petrochemical manufacturer whose stock trades in the U.S. markets has agreed to settle charges that it created false books and records to conceal millions of dollars in illicit bribes paid to Brazilian government officials to win or retain business. In a global settlement with the SEC, U.S. Department of Justice, and authorities in Brazil and Switzerland, Braskem S.A. agreed to pay $957 million. The SEC’s complaint alleges that Braskem made approximately $325 million in profits through bribes paid through intermediaries and off-book accounts managed by a private company that was Braskem’s largest shareholder. Bribes were paid to a government official at Brazil’s state-controlled petroleum company as well as Brazilian legislators and political party officials. “As alleged in our complaint, Braskem lacked the internal controls to prevent its use of third parties, off-book accounts, and other intermediaries to bribe government officials in Brazil during an eight-year period,” said Stephanie Avakian, Deputy Director of the SEC Enforcement Division. “Braskem’s misconduct was exposed through the investigative work of authorities in three countries.” Braskem agreed to pay $325 million in disgorgement, including $65 million to the SEC and $260 million to Brazilian authorities. Braskem agreed to pay more than $632 million in criminal penalties and fines. The company must retain an independent corporate monitor for at least three years. The SEC’s investigation is continuing. It is being conducted by Ernesto Palacios and Thierry Olivier Desmet of the FCPA Unit with assistance from David S. Johnson and Fernando Torres, and supervised by Kara Brockmeyer, Chief of the FCPA Unit. The SEC appreciates the assistance of the Department of Justice Criminal Division’s Fraud Section, the Federal Bureau of Investigation, the Brazilian Federal Prosecution Service, the Brazilian Federal Police, and the Office of the Attorney General in Switzerland.
The Securities and Exchange Commission today announced that a Brazilian-based petrochemical manufacturer whose stock trades in the U.S. markets has agreed to settle charges that it created false books and records to conceal millions of dollars in illicit bribes paid to Brazilian government officials to win or retain business. In a global settlement with the SEC, U.S. Department of Justice, and authorities in Brazil and Switzerland, Braskem S.A. agreed to pay $957 million. The SEC’s complaint alleges that Braskem made approximately $325 million in profits through bribes paid through intermediaries and off-book accounts managed by a private company that was Braskem’s largest shareholder. Bribes were paid to a government official at Brazil’s state-controlled petroleum company as well as Brazilian legislators and political party officials. “As alleged in our complaint, Braskem lacked the internal controls to prevent its use of third parties, off-book accounts, and other intermediaries to bribe government officials in Brazil during an eight-year period,” said Stephanie Avakian, Deputy Director of the SEC Enforcement Division. “Braskem’s misconduct was exposed through the investigative work of authorities in three countries.” Braskem agreed to pay $325 million in disgorgement, including $65 million to the SEC and $260 million to Brazilian authorities. Braskem agreed to pay more than $632 million in criminal penalties and fines. The company must retain an independent corporate monitor for at least three years. The SEC’s investigation is continuing. It is being conducted by Ernesto Palacios and Thierry Olivier Desmet of the FCPA Unit with assistance from David S. Johnson and Fernando Torres, and supervised by Kara Brockmeyer, Chief of the FCPA Unit. The SEC appreciates the assistance of the Department of Justice Criminal Division’s Fraud Section, the Federal Bureau of Investigation, the Brazilian Federal Prosecution Service, the Brazilian Federal Police, and the Office of the Attorney General in Switzerland.