In re CDM Smith Inc. (2017)

• Case Name
• In re CDM Smith Inc. (2017)

• Date Filed
• 06/29/2017

• Enforcement Agency
• DOJ

• Countries
• India

• Foreign Official
• Officials from the National Highways Authority of India; Unnamed officials from the Indian state of Goa.

• Date of Conduct
• 2011 to 2015

• Nature of Business
• CDM Smith Inc. is a privately held construction and engineering firm incorporated and headquartered in Boston, Massachusetts.

• Influence to be Obtained
• According to the DOJ, from 2011 until 2015, employees of CDM Smith’s wholly owned Indian subsidiary bribed officials in the National Highways Authority of India in exchange for contracts from the authority.  The alleged bribes generally ranged from 2% to 4% of the contract price and were paid through fraudulent subcontractors.  In addition, the DOJ claims that CDM Smith’s Indian subsidiary paid $25,000 to local officials in the Indian state of Goa to connection with a water project contract.

• Enforcement
• On June 29, 2017, the DOJ announced that it would decline to charge CDM Smith for violations to the FCPA, subject to the company’s willingness to disgorge $4,037,138 in illicit profits.  The declination was offered as part of the DOJ’s FCPA Pilot Program.

• Amount of the Value
• Not Stated

• Amount of Business Related to Payment
• Approximately $4 million.

• Intermediary
• Subsidiary; Subcontractors.

• Citizenship of Parent Entity
• United States

• Total Sanction
• $ 4,037,138

• Compliance Monitor
• No

• Reporting Requirements
• No

• Case is Pending?
• No

CDM Smith Inc.

• Citation
•  In re CDM Smith Inc. (2017)

• Date Filed
• 06/29/2017

• Filed Under Seal
• No

• FCPA Statutory Provision
• • Anti-Bribery

• Other Statutory Provision
• None

• Disposition
• Public Declination with Disgorgement

• Defendant Jurisdictional Basis
• Domestic Concern

• Defendant's Citizenship
• United States