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Friday, March 29, 2024 | Back issues
Courthouse News Service Courthouse News Service

$2 Million Fine for Bribing Chinese Airlines

(CN) - Tulsa-based aircraft maintenance firm NORDAM Group will pay $2 million in fines for bribing employees of China-based airlines to get contracts, federal prosecutors said.

The settlement resolves accusations of violations of the Foreign Corrupt Practices Act.

"NORDAM, its subsidiaries and affiliates paid bribes to employees of airlines created, controlled and exclusively owned by the People's Republic of China in order to secure contracts to perform [maintenance, repair and overhaul] services for those airlines," the Justice Department said in a statement.

"The bribes were paid both directly and indirectly to the airline employees. In an effort to disguise the bribes, three employees of NORDAM's affiliate entered into sales representation agreements with fictitious entities and then used the money paid by NORDAM to those entities to pay bribes to the airline employees."

Prosecutors say they agreed to a nonprosecution agreement due to NORDAM's timely, voluntary and complete disclosure of the conduct.

NORDAM CEO Meredith Siegfried told Business Insurance.com, "When the illegal activity was discovered, it was immediately reported to NORDAM's Board, the appropriate authorities in Singapore, and the U.S. Department of Justice."

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