Gautam Adani charged by SEC: Key FCPA corruption cases and their results

US SEC accused Gautam Adani and seven others of paying $265 million in bribes to Indian government officials to secure solar energy project contracts for Adani Green Energy

Industrialist Gautam Adani, along with seven others, has been charged by the United States Securities and Exchange Commission (SEC) for allegedly paying $265 million in bribes to Indian government officials. The bribes were reportedly aimed at securing contracts for Adani Green Energy, the renewable energy arm of the Adani Group.

 

The SEC alleged that Adani misled US investors by falsely presenting robust anti-bribery measures while engaging in corrupt practices. The alleged incident occurred during a September 2021 bond offering by Adani Green, which raised $750 million, including $175 million from US investors. 

Other major FCPA cases and their outcomes

The US Foreign Corrupt Practices Act (FCPA) has been used in numerous high-profile corruption cases. Here are some notable examples:

 

1. Siemens AG

 

In 2008, German engineering giant Siemens settled a $1.6 billion bribery case with the SEC and the US Department of Justice (DOJ). Investigations revealed Siemens paid over $1 billion in bribes to foreign government officials. Siemens admitted to significant compliance failures during the case.

 

2. Eli Lilly and Company

 

In 2012, pharmaceutical giant Eli Lilly was charged with FCPA violations for bribes paid by its subsidiaries in countries like Russia and China from 1994 to 2009. Despite knowing about the issues, Eli Lilly continued the practices for over five years. The company settled the charges by paying a $29 million penalty.

 

3. Teva Pharmaceutical Industries

 

In 2016, Israel-based Teva Pharmaceuticals faced charges of earning $214 million in profits through bribery. The company settled by paying over $519 million, including $236 million to the SEC and $283 million under a deferred prosecution agreement with the DOJ.

 

4. Goldman Sachs

 

In 2023, Roger Ng, a former managing director of Goldman Sachs, was sentenced to 10 years in prison for his role in the 1MDB scandal. He and his co-conspirators misappropriated $2.7 billion from Malaysia’s state investment fund, 1Malaysia Development Berhad. Goldman Sachs paid over $2.9 billion in settlements with authorities in the US, UK, and Singapore.

 

5. SAP SE

 

Between 2014 and 2022, SAP SE faced allegations of bribery in countries like South Africa, Kenya, and Tanzania. SAP agreed to pay nearly $100 million in penalties to the SEC and an additional $118.8 million in fines to the DOJ.

Adani Group’s response

The Adani Group has denied all allegations, stating:

 

“The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. The Adani Group remains committed to maintaining the highest standards of governance, transparency, and compliance across all jurisdictions of its operations.”

 

Impact on Adani companies

 

The news of the SEC charges led to a sharp fall in Adani Group shares, with stocks declining by up to 20 per cent when markets opened.