By Sabela Ojea
AAR agreed to pay over $55 million to resolve corruption-related investigations brought by the Justice Department and the Securities and Exchange Commission.
The aviation services company allegedly participated in schemes to pay bribes to government officials in Nepal and South Africa to obtain business with state-owned airlines, violating the Foreign Corrupt Practices Act.
A former AAR subsidiary executive previously pleaded guilty for his role in the Nepal scheme, and a third-party agent of AAR previously pleaded guilty for his role in the South Africa scheme, the Justice Department said Thursday.
AAR, which obtained profits of nearly $24 million as a result of the 2015 to 2020 schemes, entered into an 18-month non-prosecution agreement with the Justice Department.
The company agreed to keep cooperating with the criminal division's fraud section and the U.S. Attorney's Office for the District of Columbia in any ongoing or future criminal investigations arising during the term of the NPA.
"Companies competing on a fair and level playing field is a core value that we expect any U.S. company or anyone doing business in the United States to embrace," said Matthew Graves, U.S. Attorney for the District of Columbia.
Some of the remedial measures AAR has taken include conducting an enterprise-wide review of all existing high-risk third-party representatives and reducing its use of international sales agents.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
(END) Dow Jones Newswires
December 19, 2024 17:24 ET (22:24 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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