DOJ Declines To Prosecute DynCorp Over FCPA Allegations
By: Christopher A. Iacono
Delta Tucker Holdings, Inc. announced last week in its 2012 10-K that its subsidiary, DynCorp International Corporation, will not be prosecuted by the Department of Justice for Foreign Corrupt Practices Act violations. DynCorp provides specialized-mission critical professional and support services outsourced by the United States Military, non-Military United States governmental agencies and foreign governments. They provide expertise in law enforcement training and support, base and logistics operations, intelligence training, rule of law development, construction management, international development, ground vehicle support, counter-narcotics aviation, platform services and operations and linguist services. Conduct of DynCorp’s employees in Afghanistan and Iraq has been a source of controversy.
“According to DynCorp, the United States Department of Justice ended the inquiry because of a number of factors, including the voluntary disclosure by the company… and the steps taken to enhance the company’s anti-corruption compliance program.”
According to the filing, DynCorp had identified certain payments made on their behalf by two subcontractors to expedite the issuance of a limited number of visa’s and licenses from a foreign government agency that raised compliance issues under the United States Foreign Corrupt Practices Act. As a result, DynCorp had hired outside counsel to investigate the payments. In November 2009, DynCorp voluntarily brought this matter to the attention of the United States Department of Justice and the Securities Exchange Commission.
On February 5, 2013, the United States Department of Justice notified the corporation that their inquiry into the allegations was closed. According to DynCorp, the United States Department of Justice ended the inquiry because of a number of factors, including the voluntary disclosure by the company, the thorough investigation undertaken by the company, and the steps taken to enhance the company’s anti-corruption compliance program.