Prosecutors allege that in Nepal, AAR successfully secured a contract with Nepal Airlines Corp. concerning the sale of two Airbus A330-200 aircraft by offering and paying bribes to Nepali officials through various intermediary firms. In South Africa, the company similarly obtained a contract with South African Airways Technical by offering and paying bribes through a third-party agent.
In a separate yet related agreement with the SEC, AAR will also pay $29.2 million in disgorgement and prejudgment interest. Additionally, Deepak Sharma, a former executive at an AAR subsidiary, reached a settlement with the SEC. Sharma had previously pleaded guilty to his role in the bribery scheme, which involved violations of the Foreign Corrupt Practices Act (FCPA) in August, as per the DOJ. As part of the SEC settlement, Sharma has agreed to pay a total of $184,597 in disgorgement and prejudgment interest, with $130,835 having been paid already through a forfeiture order in connection with his previous agreement with the DOJ.
