French power and transportation company Alstom confirmed yesterday that it is cooperating with the Department of Justice in connection with a bribery probe into possible violations of the Foreign Corrupt Practices Act.

The bribery probe centers on allegations that Alstom, along with Japanese trading company Marubeni, used middlemen to pay—and conceal—bribes to foreign government officials in Indonesia in order to secure a $118 million contract, known as the Tarahan project, to provide power-related services in the country, according to the Justice Department.

In a prepared statement, Robert Luskin of law firm Patton Boggs, Alstom's principal outside legal adviser in the United States, said that Alstom is “cooperating closely, actively, and in good faith” with the Justice Department's investigation. He added that the agency has “not identified any ongoing shortcomings with the scope, level, or sincerity of the company's effort.”

Alstom issued the statement in response to a March 27 Bloomberg article, which speculated that the outcome of Alstom's case is “likely to result in one of the largest U.S. anti-corruption enforcement actions, according to two people with knowledge of the probe.” The article speculated that the outcome of Alstom's case could rival the $800 million settlement Siemens reached with U.S. enforcement authorities in December 2008 to resolve a long-running global bribery and corruption scandal.

The Bloomberg article citing the investigation “does not accurately reflect the current situation,” said Luskin. Ongoing discussions with the Justice Department “have not evolved to the point of negotiating a potential resolution of any claims. Any effort to estimate the size of any possible fine is sheer speculation, as would be any comparison with other cases that have recently been resolved,” he said.

Luskin added that Alstom and the Justice Department have identified “a limited number of projects,” where the company is focusing its investigation efforts. “We are working diligently with the [Department of Justice] to answer questions and produce documents associated with these specific projects so that we can address any possible improper conduct.”

Individuals Charged

So far, charges have been brought against one current and three former executives of Alstom for their alleged participation in the scheme. Frederic Pierucci, vice president of global boiler sales at Alstom, pleaded guilty on July 29, 2013, to one count of conspiring to violate the FCPA, and one count of violating the FCPA.  In addition, David Rothschild, former vice president of regional sales at Alstom Connecticut., pleaded guilty on Nov. 2, 2012, to one count of conspiracy to violate the FCPA.

Lawrence Hoskins, a former senior vice president for the Asia region, and William Pomponi, a former vice president of regional sales at Alstom Connecticut, were charged in a second superseding indictment filed by the Justice Department on July 30, 2013.

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