UK-based reinsurance brokers Tysers Insurance Brokers and H.W. Wood Limited have reached a settlement with the United States Justice Department following investigations into violations of the Foreign Corrupt Practices Act (FCPA).
In a recent statement, the DOJ disclosed that illicit activities, including the payment of bribes to officials in Ecuador, were uncovered during the investigations. Both Tysers and H.W.Wood have agreed to a three-year deferred prosecution agreement (DPA) after being charged in the Southern District of Florida for breaching the FCPA's anti-bribery provisions.
As part of the settlement, Tysers will pay a criminal penalty of $36 million and an administrative forfeiture of approximately $10.5 million, while H.W. Wood will pay a criminal penalty of $22.5 million and a forfeiture of approximately $2.3 million. The firms admitted to participating in a corrupt scheme involving bribes to Ecuadorian government officials, leading to illegal profits. The resolution underscores the Justice Department's commitment to holding both companies and individuals accountable for wrongdoing.
Court documents revealed that between 2013 and 2017, Tysers and H.W. Wood arranged bribes amounting to $2.8 million to officials in Ecuadorian state-owned insurance companies to gain unfair advantages in reinsurance business. Key officials like IRS Criminal Investigation Chief Jim Lee and FBI Assistant Director Luis Quesada stressed the importance of combatting FCPA violations to uphold integrity in markets and governments. As part of the DPAs, Tysers and H.W. Wood will collaborate with ongoing investigations, bolster their compliance programs, and provide regular reports to the department on the progress of these measures over the next three years.
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