In early February, the SEC announced that Ignacio Cueto Plaza, the CEO of South America-based LAN airlines, agreed to pay a $75,000 penalty to settle alleged FCPA violations related to illicit payments made to a third-party consultant. The SEC alleged that Cueto violated the internal accounting controls and books and records provisions of the Securities Exchange Act by knowingly authorizing a $1.15 million payment to a consultant for a sham study of air routes in Argentina. According to the SEC, "Cueto knew no such study would be performed and the consultant instead agreed to help settle the labor dispute." Cueto settled the allegations without admitting to or denying the SEC's findings. In addition to the monetary penalty, Cueto must attend anticorruption training and certify his compliance with the airline's policies and procedures.
Read the SEC order and coverage from Reuters to learn more.
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