The firm paid the Indian National Highway Authority from 2011 to 2015 in exchange for contracts that resulted in about $4 million in profits. Such activity is a direct violation of the Foreign Corrupt Practices Act (FCPA).
How, then, did CDM Smith avoid prosecution? The declination letter came under the Justice Department’s FCPA pilot program, which grants companies discounts on fines they receive for violating the Foreign Corrupt Practices Act.
Discounts are only received if companies opt to self-disclose their wrong-doings, cooperate with investigators, and disgorge ill-gotten profits. CDM Smith adhered to these stipulations, in addition to terminating all involved parties, and enhancing its compliance program.