Embraer monitorship ends after monitor approves compliance program

On June 1, 2020, Embraer S.A., a Brazilian aircraft manufacturer, announced in a securities filing with the US Securities and Exchange Commission (SEC) that the Company’s monitorship had expired on May 22, 2020, after the Company’s monitor delivered an April 13, 2020, final report to the U.S. Department of Justice (DOJ) and to the SEC finding that Embraer’s compliance program was “reasonably designed and implemented to detect and prevent violations of the anti-corruption laws.”  Previously, in February 2020, the Company had agreed to extend the monitor’s term for 90 days to allow the monitor to complete his work. 

In October 2016,  Embraer entered agreements with the DOJ and the SEC to settle alleged violations of the anti-bribery and books and records provisions of the US Foreign Corrupt Practices Act, as well as resolved investigations by the Brazilian Federal Public Prosecutor’s Office (MPF) and the Brazilian Securities and Exchange Commission (CVM) into alleged violations of Brazilian laws.  Embraer paid more than $205 million in penalties and disgorgement to resolve these allegations, and agreed to an independent monitorship for three years (beginning in February 2017).  Embraer subsequently entered into separate cooperation agreements with the Mozambican and Dominican authorities, under which it paid $7 million to the Dominican Republican and agreed to assist both countries in their ongoing investigations. 

In its June 1 filing, the Company acknowledged that there were additional steps it must take to comply with its DOJ and SEC resolutions, and noted that it continues to cooperate with all governmental authorities as circumstances require.  Finally, the Company noted that related proceedings were ongoing and “could result in additional fines and possibly other sanctions and adverse consequences, which may be substantial.”

Form 20F

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