Albemarle Corp. Resolves FCPA Violations with $103.6 Million Settlement

Charlotte-based Albemarle Corporation, a leading global specialty chemicals company, has reached a significant settlement with the Securities and Exchange Commission (SEC), agreeing to pay more than $103.6 million. The settlement comes in response to charges filed by the SEC, alleging violations of the anti-bribery, recordkeeping, and internal accounting controls provisions of the Foreign Corrupt Practices Act (FCPA).

The SEC's Order reveals that despite clear warning signs, Albemarle engaged agents from at least 2009 through 2017 who facilitated bribes to secure sales of refinery catalysts. These transactions involved public-sector oil refineries in Vietnam, India, and Indonesia, as well as private-sector oil refineries in India. Additionally, the Order finds that Albemarle failed to meet the FCPA's recordkeeping requirements and neglected to establish and maintain a sufficient internal accounting controls system to ensure that payments made to agents in Vietnam, Indonesia, India, China, and the United Arab Emirates were for legitimate services.

Charles Cain, Chief of the SEC Enforcement Division's FCPA Unit, emphasized Albemarle's failure to address concerning red flags, stating, "Despite repeated and glaring bribery-related red flags, Albemarle failed for many years to implement sufficient internal accounting controls relevant to the use of agents by its global refining solutions business to make sales to state-owned customers around the world. This failure set the stage for wide-ranging misconduct."

In consenting to the SEC's Order, Albemarle acknowledges its violations of the anti-bribery, recordkeeping, and internal accounting controls provisions of the Securities Exchange Act of 1934. The company has committed to cease and desist from engaging in or causing any future violations of these provisions. As part of the settlement, Albemarle will disgorge more than $81.8 million, along with prejudgment interest exceeding $21.7 million, resulting in a total payment of more than $103.6 million.

Simultaneously, the U.S. Department of Justice has announced its involvement in a parallel action, entering into a non-prosecution agreement with Albemarle. Under this agreement, Albemarle will pay a $99 million criminal fine, in addition to a forfeiture of approximately $98 million. Of the forfeiture amount, $81.8 million will be satisfied through the company's payment of disgorgement as specified in the SEC Order.

This settlement reflects Albemarle Corporation's commitment to addressing and rectifying past compliance issues and aligning with legal and regulatory standards. The resolution further underscores the importance of maintaining rigorous anti-bribery and compliance measures in today's global business environment.