The U.S. Justice Department has announced a settlement with French company Alstom that marks the largest-ever criminal fine levied in the U.S. over foreign bribery laws. Some of the conspiracy took place in Connecticut.
Power turbine maker Alstom pleaded guilty in US District Court in Connecticut to charges that it violated the foreign corrupt practices act. Assistant US Attorney in Connecticut Michael Gustafson told a press conference a significant part of the illicit work was carried out at Alstom’s US headquarters in Windsor.
"Alstom Power and its predecessor companies have been an important part of the fabric of our state since the 1950s, an employer of hundreds of Connecticut residents," Gustafson said. "Yet, as this case makes clear, executives and employees from Windsor worked hand in hand with co-conspirators across the globe to bribe officials in places such as Indonesia, Egypt and Saudi Arabia."
The aim of the conspiracy was for Alstom to secure lucrative government contract to supply power equipment, bypassing competitive bidding processes.
Another wrinkle in this case: Fairfield based General Electric agreed back in June to buy Alstom’s power business. Justice officials say Alstom itself will remain liable to pay the agreed $772 million in criminal penalties, and they won’t be passed on to GE.
