Stericycle Settles U.S., Brazilian Bribery Case For $84M

Stericycle Bribery Settlement Overview: 

• Who: Stericycle has agreed to pay a combined $84 million in penalties after admitting it paid bribes to foreign officials in Brazil, Mexico and Argentina.
• Why: The penalties were lobbied at Stericycle by the U.S. Department of Justice and the U.S. Securities and Exchange Commission (SEC). 
• Where: The case is being presented before the SEC.

Stericycle has agreed to pay a total of $84 million in penalties after U.S. and Brazilian authorities accused the global waste management company of paying bribes to foreign officials in Brazil, Mexico and Argentina between 2012 and 2016. 

Authorities claimed Stericycle conspired to pay around $10.5 million in bribes to foreign officials in exchange for business advantages that it says ultimately netted the company at least $21.5 million in profits. 

In accepting the authorities’ deal, Stericycle will pay a criminal penalty of $52.5 million to the U.S. Department of Justice (DOJ) and around $28.2 million to resolve a separate investigation being run parallel by the U.S. Securities and Exchange Commission (SEC). 

Stericycle, which will be able to pay the fine under a three-year deferred prosecution agreement, has already handed over $9.3 million to Brazilian authorities due to the bribery scheme, Law360 reports.

In addition to bribing, Stericycle also kept fabricated books and records in an effort to conceal the scheme, according to the DOJ. 

Stericycle will also be required to follow all rules and regulations for the next three years, flag any potential problems when and if they occur and cooperate with any document or interview requests made by the DOJ’s fraud unit, per the agreement. 

“The company shall timely and truthfully disclose all factual information with respect to its activities, those of its subsidiaries and affiliates and those of its present and former directors, officers, employees, agents and consultants,” the agreement states. 

The DOJ has said it will allow a credit of as much as one third of the $28.2 million criminal penalty be credited against any fines Stericycle pays to Brazilian authorities, including the roughly $9.3 million it already has. 

Stericycle To Hire Independent Compliance Monitor Following Bribery Scheme

The SEC is also requiring Stericycle to hire an independent compliance monitor, who will review the company’s current policies and help improve its compliance program, within 60 days of its order, which the company must retain for a minimum of 24 months. 

“Should the company learn of credible evidence or allegations of corrupt payments, false books, records or accounts or the failure to implement adequate internal accounting controls, the company shall promptly report such credible evidence or allegations to the commission staff,” states the order from the SEC.

Stericycle, which is based out of Illinois, previously revealed the penalties lobbied at them by the DOJ and SEC during its annual report in late February at which time it also noted that a settlement surrounding Foreign Corrupt Practices Act violations was looming, Law360 reports.

In 2017, Stericycle agreed to pay $295 to resolve claims revolving around the company raising the price for its medical waste disposal services. 

What do you think of the settlement and requirements the SEC placed on Stericycle? Let us know in the comments! 

The SEC order is In the Matter of Stericycle Inc., Case No. 3-20826, before the Securities and Exchange Commission.

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