Latam to Pay $12.7 Million for Bribery-Linked Record Crimes
Author(s): Andrew M. Harris | Date: July 25, 2016 | Language: English
Source: Bloomberg.com | URL: http://goo.gl/q31weJ
Latam Airlines Group SA agreed to pay $12.7 million to resolve a U.S. criminal probe into allegations the Chilean carrier’s predecessor paid bribes to union officials in Argentina.
The predecessor, LAN Airlines SA, made a phony $1.15 million consulting agreement with an adviser to an official of Argentina’s transportation ministry in 2006, federal prosecutors said, adding that the money was funneled to labor union officials in exchange for an agreement to accept lower wages.
The airline profited by more than $6.7 million as a result of the bribes paid to the union officials, according to the government.
Santiago-based Latam has entered into a three-year deferred-prosecution agreement with the government, resolving a Foreign Corrupt Practices Act case against it filed Monday in Fort Lauderdale, Florida.
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