SEC-PR-2412-205

According to the SEC’s order, from 2015 through 2018, Deepak Sharma, who at the time was President of International Supply Chain of an AAR subsidiary, orchestrated and implemented a bribery scheme to win a contract for the sale of two Airbus A330 aircraft, valued at approximately $210 million, to Nepal Airlines, a government-owned airline. The SEC’s order finds that, as part of the scheme, AAR retained a third-party agent to pay bribes to officials who had control over the contract. According to the order, Sharma was also involved in a bribery scheme involving a contract for AAR to provide aviation services to a subsidiary of government-owned South African Airways. The SEC’s order finds that AAR paid millions of dollars in bribes to Nepalese and South African officials as part of the two schemes.

“Here, the bribes schemes took place in both Nepal and South Africa, reflecting that a deficient control environment creates fertile ground for mischief that can cross borders,” said Charles Cain, Chief of the SEC’s FCPA Unit. “This matter serves as another reminder that companies must have robust compliance and accounting controls that are commensurate with the FCPA risks they face, including with respect to their work with third parties across their business operations.”