United States v. Fiat S.p.A., et al. (2008) 
United States v. Iveco S.p.A. (D.D.C. 2008)
United States v. CNH Italia S.p.A (D.D.C. 2008)
United States v. CNH France S.A. (D.D.C. 2008)

• Case Name
• United States v. Fiat S.p.A., et al. (2008) 
  United States v. Iveco S.p.A. (D.D.C. 2008)
  United States v. CNH Italia S.p.A (D.D.C. 2008)
  United States v. CNH France S.A. (D.D.C. 2008)

• Date Filed
• 12/22/2008

• Enforcement Agency
• DOJ

• Foreign Official
• None

• Date of Conduct
• 2000 to 2002

• Nature of Business
• Sales of trucks and parts, agricultural and construction equipment, construction vehicles and spare parts, and other equipment to Iraq under the U.N. Oil-for-Food Program

• Influence to be Obtained
• In April 1995, the U.N. adopted Security Council Resolution 986, which permitted the government of Iraq to sell oil and to use proceeds from those sales to purchase humanitarian supplies such as food for the Iraqi people (“U.N. Oil-for-Food Program”).  In an extensive scheme, the Iraqi government solicited illicit payments in the form of surcharges from oil purchasers and kickbacks, often termed “after sales service fees,” from humanitarian goods suppliers.  The kickback payments were masked by inflating the contract price, usually by approximately 10% of the contract value, though in this case sometimes as high as 15%.
  
  Iveco S.p.A. (“Iveco”), a wholly-owned subsidiary of Fiat S.p.A. (“Fiat”), is an international manufacturer and supplier of commercial trucks, parts, and diesel engines.  Between October 2000 and June 2001, Iveco, through an unnamed Lebanese company acting as an agent and distributor and an unnamed United Arab Emirates company acting as a conduit for payments to the Iraqi government, paid approximately $3.17 million in kickbacks to the government of Iraq for sixteen contracts worth approximately €31.9 million to supply Iveco trucks and parts to the Republic of Iraq. 
  
  CNH Italia S.p.A. (“CNH Italia”), a wholly-owned subsidiary of CNH Global N.V. (“CNH Global”) and 90% owned by Fiat, is an international manufacturer of agricultural and construction equipment.  From December 2000 through June 2002, CNH Italia, directly and through an unnamed Jordanian company acting as an agent and distributor, paid approximately $1 million in kickbacks to the government of Iraq to obtain four contracts worth approximately €12 million to supply agricultural equipment to the Ministry of Agriculture of the Republic of Iraq. 
  
  CNH France S.A. (“CNH France”) is a wholly-owned subsidiary of CNH Global and Fiat.  From June 2001 through July 2001, CNH France, through an unnamed Lebanese company acting as a distributor, paid approximately $188,000 in kickbacks to the government of Iraq to obtain three contracts worth approximately €2.2 million with the Ministry of Oil to supply construction vehicles and spare parts. 
  
  Iveco and CNH Italia improperly characterized these kickback payments as service and commission fees.  Their books and records, including those containing false characterizations, were incorporated into the books and records of Fiat.
  
  The government did not allege bribery of any individual foreign governmental officials.

• Enforcement
• On December 22, 2008, Fiat, on behalf of itself and Iveco, CNH Italia, and CNH France, entered into a three-year deferred prosecution agreement with the DOJ.  Pursuant to the agreement, the DOJ filed two one-count criminal informations against Iveco and CNH Italia, respectively alleging conspiracy to commit wire fraud and to violate the FCPA’s books-and-records provisions.  The DOJ also filed a one-count criminal information against CNH France alleging conspiracy to commit wire fraud.  
   
  Under the agreement, Fiat also agreed to pay a $7 million penalty.  On December 22, 2008, Fiat and CNH Global also entered into a consent agreement with the SEC for failure to maintain internal controls and for books-and-records violations.  The agreement called for disgorgement of $5,309,632 in profits, prejudgment interest of $1,899,510, and a civil penalty of $3,600,000.
   

• Amount of the Value
• $4.4 million.

• Amount of Business Related to Payment
• €46.1 million.
   

• Intermediary
• A Lebanese company acting as an agent and distributor, a United Arab Emirates company acting as a conduit for payments, a Jordanian company acting as an agent and distributor, and a Lebanese company acting as a distributor.
   

• Total Sanction
• $ 7,000,000

• Compliance Monitor
• No

• Reporting Requirements
• No

• Case is Pending?
• No

• Total Combined Monetary Sanction
• $ 17,809,142

• Related Enforcement Actions
• SEC v. Fiat S.p.A. and CNH Global N.V. (D.D.C. 2008)
  

Fiat S.p.A.

• Citation
• United States v. Fiat S.p.A. (2008); 

• Date Filed
• 12/22/2008

• Filed Under Seal
• No

• FCPA Statutory Provision

• Other Statutory Provision
• None

• Disposition
• Deferred Prosecution Agreement

• Defendant Jurisdictional Basis
• Conspiracy, Agent of Issuer

• Defendant's Citizenship
• Italy

Iveco S.p.A.

• Citation
• United States v. Fiat S.p.A. (2008); United States v. Iveco S.p.A, No. 1:08-cr-00377 (D.D.C. 2008); United States v. CNH Italia S.p.A., No. 1:08-cr-00378 (D.D.C. 2008); United States v. CNH France S.A., No. 1:08-cr-00379 (D.D.C. 2008).
   

• Date Filed
• 12/22/2008

• Filed Under Seal
• No

• FCPA Statutory Provision
• • Conspiracy: Books-and-Records

• Other Statutory Provision
• Conspiracy (Wire Fraud).

• Disposition
• Deferred Prosecution Agreement

• Defendant Jurisdictional Basis
• Conspiracy, Agent of Issuer

• Defendant's Citizenship
• Italy

CNH Italia S.p.A

• Citation
• United States v. CNH Italia S.p.A., No. 1:08-cr-00378 (D.D.C. 2008);

• Date Filed
• 12/22/2008

• Filed Under Seal
• No

• FCPA Statutory Provision
• • Conspiracy: Books-and-Records

• Other Statutory Provision
• Conspiracy (Wire Fraud).

• Disposition
• Deferred Prosecution Agreement

• Defendant Jurisdictional Basis
• Conspiracy, Agent of Issuer

• Defendant's Citizenship
• Italy

CNH France S.A. 

• Citation
• United States v. CNH France S.A., No. 1:08-cr-00379 (D.D.C. 2008).

• Date Filed
• 12/22/2008

• Filed Under Seal
• No

• FCPA Statutory Provision

• Other Statutory Provision
• Conspiracy (Wire Fraud).

• Disposition
• Deferred Prosecution Agreement

• Defendant Jurisdictional Basis
• Conspiracy, Agent of Issuer

• Defendant's Citizenship
• France