Honeywell Agrees To Pay $203M To Resolve Foreign Corruption Charges

Honeywell Agrees To Pay $203M To Resolve Foreign Corruption Charges
  • Honeywell International Inc HON has agreed to pay $202.7 million to resolve corruption investigations in the U.S. and Brazil.
  • Allegations were raised regarding Honeywell's business practice of paying bribes to officers of Brazil's state-owned oil company, Petróleo Brasileiro S.A. 
  • As part of the resolutions, Honeywell's subsidiary, UOP LLC, has entered into a three-year Deferred Prosecution Agreement (DPA) with the Department of Justice (DOJ) related to charges of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) in connection with a project awarded in 2010.
  • Honeywell agreed to certain compliance and compliance reporting obligations but was not charged criminally in this matter.
  • The company also agreed to a resolution with the SEC that resolves allegations relating to Brazil conduct and conduct relating to a foreign subsidiary's contract with the intermediary, Unaoil, in Algeria, executed in 2011.
  • The SEC acknowledged that Honeywell had "strengthened its ethics and compliance organization."
  • "We are pleased to have this legacy matter behind us, as these events in no way reflect the current leadership, culture and values that Honeywell has come to establish over a decade since this activity occurred," said Darius Adamczyk, chairman and CEO of Honeywell.
  • Price Action: HON shares are trading lower by 0.03% at $209.35 in premarket on the last check Tuesday.
  • Photo Via Wikimedia Commons

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