On May 24, 2022, Glencore International A.G. (“Glencore”), a multi-national resource extraction and commodities trading company, pleaded guilty in the Southern District of New York to one count of conspiracy to violate the anti-bribery provision of the Foreign Corrupt Practices Act (“FCPA”). The same day, its subsidiary, Glencore Ltd., separately pleaded guilty in the District of Connecticut to one count of conspiracy to engage in commodity price manipulation.
At the same time, Glencore, Glencore Ltd., and Chemoil Corporation (another Glencore subsidiary) also settled a parallel enforcement matter brought by the Commodity Futures Trading Commission (“CFTC”) alleging commodity price manipulation involving foreign corruption in violation of the Commodities Exchange Act (“CEA”).
Glencore and its subsidiaries have agreed to pay over $1.1 billion to the Department of Justice (“DOJ”) and the CFTC to resolve these three U.S. enforcement matters, which are part of a coordinated global resolution with criminal and civil authorities in at least the United States, the United Kingdom, and Brazil. Notably, the three resolutions highlight the more aggressive approach to corporate enforcement previewed in public statements by DOJ officials under the Biden Administration, as well as the CFTC’s continued interest in pursuing market manipulation and fraud involving foreign corruption.