Why is Alstom paying their giant fine to the US gov't?

[Rick Lee]

It's a French company accused of paying bribes in Indonesia and Egypt. Why does our gov't. claim jurisdiction to enforce US laws against bribery upon foreign-based companies doing business outside the US? How does this work?

[Iciclehead]

Hmmm. not sure, but I will dig and find out...but I suspect this is another example of US imperialism, just like FATCA and the Midland Three.....

Blackmail in its finest form..

Dennis

[Rick Lee]

Right. But why did Alstom agree to pay? I'd have told them to pound sand, pulled up all stakes in the US and saved $772 million.

[lowyder993s]

GE offers to acquire Alstom Thermal, Renewables, and Grid businesses

GE probably told them they couldn't have stuff like that on their books if GE aquires? I'm sure it's built into the price as well.

[jorian]

A furtherance of the Helms-Burton Act?

[stomachmonkey]

......."Its American subsidiaries, Alstom Power and Alstom Grid, entered into deferred prosecution agreements, admitting that they had conspired to violate the act. A significant part of the bribery plot was carried out in Windsor, Conn., where Alstom Power has headquarters, the Justice Department said.".......

http://www.nytimes.com/2014/12/23/business/alstom-plead-guilty-bribery-us-justice-department.html?_r=0

..." In relation to these underlying charges, Alstom S.A. has agreed to plead guilty to violating the books and records and internal controls provisions of the FCPA and to pay a fine of approximately USD 772 million. The DOJ has also stipulated that no part of the fine can be passed on to General Electric as part of the projected sale of Alstom’s energy businesses."....

Agreement between Alstom and the US Department of Justice

USDOJ: CRM: FRAUD: Foreign Corrupt Practices Act (FCPA)

[stomachmonkey]

Originally Posted by Rick Lee

Right. But why did Alstom agree to pay? I'd have told them to pound sand, pulled up all stakes in the US and saved $772 million.

Key data

Over 100 years of presence in the U.S.
About 6,500 permanent employees
Alstom equipment can be found in 1 of every 2 U.S. power plants
7,000 of the country’s subway and rail transit vehicles rolled off an Alstom production line
Alstom technology and equipment manages 40% of all power flowing across the country’s electrical Grids

Alstom USA

772 Million is likely a drop in the bucket compared to the loss of pulling up and moving out.

[lowyder993s]

Originally Posted by stomachmonkey

In relation to these underlying charges, Alstom S.A. has agreed to plead guilty to violating the books and records and internal controls provisions of the FCPA and to pay a fine of approximately USD 772 million. The DOJ has also stipulated that no part of the fine can be passed on to General Electric as part of the projected sale of Alstom’s energy businesses."....
)[/url]

Annnnd...shows how much I know Thx SM!

[Rick Lee]

Ok, only the GE buyout was mentioned in the BBC article I read.

[stomachmonkey]

Quote de stomachmonkey

In relation to these underlying charges, Alstom S.A. has agreed to plead guilty to violating the books and records and internal controls provisions of the FCPA and to pay a fine of approximately USD 772 million. The DOJ has also stipulated that no part of the fine can be passed on to General Electric as part of the projected sale of Alstom’s energy businesses."....

)[/url]

Annnnd...shows how much I know Thx SM!

Actually till I found that link that was my first thought as well.

Of the acquision deals I've had direct involvement in that would have been SOP unless it was the acquisition of a distressed entity in which case we'd buy them for the value of their liabilities.

[Porsche-O-Phile]

That more than pays for Solyndra!

[wdfifteen]

Originally Posted by stomachmonkey

......."Its American subsidiaries, Alstom Power and Alstom Grid, entered into deferred prosecution agreements, admitting that they had conspired to violate the act.

Next time I get busted for J-walking I'm going to admit I conspired to cross against the light and go for a deferred prosecution agreement.

[David]

Read up on foreign corruption and bribery acts. Our company now requires all employees to take a course on this before foreign travel. It's a total money grab by the us and other countries but it's a very powerful act with very small actions being punishable.