Criminal Fraud Cases
United States v. Telefonaktiebolaget LM Ericsson
- In 2019, the defendant (Ericsson) entered into a deferred prosecution agreement (DPA) for using third-party agents and consultants to make bribe payments to government officials and to manage off-the-books slush funds in Djibouti, China, Vietnam, Indonesia, and Kuwait, in violation of the Foreign Corrupt Practices Act (FCPA).
- Following the 2019 resolution, Ericsson breached the DPA by failing to truthfully disclose all factual information and evidence related to the Djibouti scheme, the China scheme, and other potential violations of the FCPA’s anti-bribery or accounting provisions. Ericsson also failed to promptly report and disclose evidence and allegations of conduct related to its business activities in Iraq that may constitute a violation of the FCPA.
- In 2023, Ericsson agreed to plead guilty to the original charges deferred by the 2019 DPA: one count of conspiracy to violate the anti-bribery provisions of the FCPA and one count of conspiracy to violate the internal controls and books and records provisions of the FCPA. Ericsson was required to serve a term of probation through June 2024 and agreed to a one-year extension of the independent compliance monitor. The plea agreement also required Ericsson to pay an additional criminal penalty of $206,728,848 – which includes the elimination of any cooperation credit originally awarded pursuant to the DPA.
United States v. Cary Yan and Gina Zhou
Cary Yan conspired with others – including his assistant, Gina Zhou – in connection with a multi-year bribery scheme in violation of the Foreign Corrupt Practices Act. Yan offered and paid tens of thousands of dollars in bribes to high-level Republic of the Marshall Islands (RMI) officials, including members of the RMI legislature, in exchange for supporting legislation creating a semi-autonomous region within the RMI called the Rongelap Atoll Special Administrative Region (RASAR) that would benefit the business interests of Yan and his associates.
United States v. Telefonaktiebolaget LM Ericsson
As a result of its breach the December 6, 2019 Deferred Prosecution Agreement with the Department of Justice, Criminal Division, Fraud Section and the Office of the United States Attorney for the Southern District of New York (“2019 DPA”), on March 21, 2023, Ericsson pleaded guilty to the original charges deferred by the 2019 DPA. Ericsson will also be required to serve a term of probation through June 2024 and has agreed to a one-year extension of the independent compliance monitor. The plea agreement also requires Ericsson to pay an additional criminal penalty of $206,728,848 – which includes the elimination of any cooperation credit originally awarded pursuant to the 2019 DPA.
Monetary Amounts and Key Terms:
- Guilty Plea (breach of 2019 DPA) – monitor extended one year (from original 2019 DPA) to 2024
- Criminal Penalty Amount: $206,728,848
- Global Resolution?: No
- Total Global Monetary Amounts: $206,728,848
- Total U.S. Monetary Amounts: $206,728,848
- U.S. Criminal Monetary Amounts: $206,728,848
United States v. Samuel Bankman-Fried
The defendant, along with co-conspirators, authorized and directed the illicit transfer of cryptocurrency then worthy approximately $40 million intended to induce and influence one or more Chinese government officials to unfreeze certain cryptocurrency trading accounts that collectively contained approximately $1 billion in cryptocurrency, in violation of the Foreign Corrupt Practices Act.