Brazilian aircraft manufacturer Embraer will pay $205 million and get a deferred prosecution agreement to settle allegations that company bribed public officials in the Dominican Republic, Saudi Arabia and Mozambique, and allegations of falsely recording payments in India via a sham agency agreement.

The company was represented by John Rowley III, Joan Meyer and Richard Dean of Baker & McKenzie in Washington, D.C.

The company did not disclose its bribery to U.S. authorities, but was still granted a deferred prosecution agreement.

Embraer executives and employees paid bribes to government officials and falsified books and records in connection with aircraft sales to foreign governments and state-owned entities in multiple countries.

In 2008, Embraer paid $3.52 million to an influential government official in the Dominican Republic via a false agency agreement to secure a contract to sell the Dominican Air Force eight military aircraft for approximately $92 million.

In 2010, Embraer paid $1.65 million to an official at a Saudi Arabian state-owned and -controlled company via a false agency agreement to secure an agreement to purchase three aircraft from Embraer for approximately $93 million.

In 2008, Embraer paid $800,000 via a false agency agreement with an intermediary designated by a high-level official at Mozambique’s state-owned commercial airline, Linhas Aéreas de Moçambique S.A. (LAM), to secure LAM’s agreement to purchase two aircraft from Embraer for approximately $65 million.

In 2009, Embraer paid an agent $5.76 million pursuant to a false agency agreement with a shell company in connection with a contract it secured to sell the Indian Air Force three aircraft for approximately $208 million.

In total, Embraer earned profits of nearly $84 million on aircraft sales as a result of the bribes.

Embraer entered into a three-year deferred prosecution agreement to resolve the case.

As part of the agreement, Embraer admitted to its involvement in a conspiracy to violate the FCPA’s anti-bribery and books and records provisions and to its willful failure to implement an adequate system of internal accounting controls.

Embraer will pay a criminal penalty of $107,285,090, continue to cooperate with the department’s investigation, enhance its compliance program, implement a more adequate system of internal accounting controls, and retain an independent corporate compliance monitor for a term of three years.

Embraer did not voluntarily disclose the FCPA violations to the Justice Department but still was granted a deferred prosecution agreement.

The Justice Department said this was because the company did cooperate with the department’s investigation after the Securities and Exchange Commission (SEC) served it with a subpoena.

The Department said that after Embraer began cooperating, it did so fully and disclosed all relevant, non-privileged facts known to it, including about individuals involved in the misconduct.

Embraer did not, however, engage in full remediation.  It disciplined a number of company employees and executives engaged in the misconduct, but did not discipline a senior executive who was aware of bribery discussions in emails in 2004 and had oversight responsibility for the employees engaged in those discussions.

“As a result, the criminal penalty in this case is 20 percent below the bottom of the applicable range under the U.S. Sentencing Guidelines, a discount that reflects Embraer’s full cooperation but incomplete remediation,” the Department said.

Embraer reached settlements with both the SEC and Brazilian authorities.

Embraer reached a settlement with the SEC, under which it will pay $83.8 million in disgorgement and $14.4 million in prejudgment interest.

The SEC has agreed to credit the disgorgement that Embraer pays to Brazilian authorities.

Embraer also reached a settlement with Brazilian authorities under which it agreed to pay $20 million in disgorgement.

With the cooperation of U.S. authorities, Brazilian authorities have charged eleven individuals for their alleged involvement in Embraer’s misconduct in the Dominican Republic.

Saudi Arabian authorities have charged two individuals for their alleged involvement in Embraer’s misconduct in Saudi Arabia.