NJ construction management firm to pay $17M penalty in international bribery case

Dive Brief:

  • Two former executives of a global construction management firm based in New Jersey have pleaded guilty to bribing foreign officials in order to win contracts abroad, the U.S. Department of Justice reported on Friday.

  • Their firm, Louis Berger International, will pay $17.1 million in criminal penalties for charges related to $3.9 million in bribes to officials in India, Indonesia, Vietnam and Kuwait between 1998 and 2010, the government said.

  • The executives disguised the bribes as “commitment fees,” per diems, and other legitimate payments to third-party vendors, the department said in a release.

Dive Insight:

The deal is part of a three-year deferred prosecution agreement that the Department of Justice agreed to, in part, because the firm self-reported the misconduct, cooperated with the investigation, agreed to make restitution, and fired the officers and employees involved with the bribes.

Sentencing hearings for the two executives — Richard Hirsch and James McClung — are scheduled for Nov. 5.

Filed Under: Legal/Regulation Corporate News
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