AAR Corp. has reached an agreement to pay $55 million to resolve allegations from both the U.S. Securities and Exchange Commission (SEC) and the U.S. Department of Justice (DOJ) concerning claims that the aviation services provider engaged in the practice of bribing government officials in Nepal and South Africa to secure business. The resolution was announced on Thursday.
Based in Illinois, AAR entered into an 18-month nonprosecution agreement with the DOJ, which asserts that the company engaged in a conspiracy to offer bribes to government officials to maintain and expand its business relationships with state-owned airlines in Nepal and South Africa between 2015 and 2020. According to the DOJ, the alleged scheme resulted in nearly $24 million in profits for AAR.
Under the terms of the nonprosecution agreement, AAR has committed to paying a penalty of approximately $26.4 million and an additional $18.6 million in administrative forfeiture. Additionally, AAR has agreed to cooperate fully with the DOJ’s Criminal Division and the U.S. Attorney’s Office for the District of Columbia on any future or ongoing criminal investigations, and to continue enhancing its compliance program throughout the duration of the agreement.
