Stericycle FCPA resolution (2022)
- Court
- U.S. District Court for the Southern District of Florida, case 1:22-cr-20156-KMM, Judge K. Michael Moore 4,5
- DOJ criminal penalty
- US$52.5 million, with up to one-third creditable against Brazilian payments 1
- SEC amounts
- Disgorgement US$22,184,981 and prejudgment interest US$5,999,258.80, with an offset of up to US$4,196,719 for payments to Brazil 3
- Charges and statutes
- Two counts of conspiracy, to violate the FCPA anti-bribery and books and records provisions (DOJ) 1. Exchange Act sections 30A, 13(b)(2)(A) and 13(b)(2)(B) (SEC) 3
- Admission
- DOJ: "According to the company's admissions and court documents" 1. SEC order: Stericycle admitted jurisdiction and consented to the order 3
What DOJ charged
Stericycle is a waste management company based in Lake Forest, Illinois 1. DOJ charged it in a criminal information with two counts of conspiracy, one to violate the FCPA anti-bribery provision and one to violate the FCPA books and records provision 1. DOJ said "Stericycle entered into a three-year deferred prosecution agreement (DPA)" 1. The later court filings show the case number 1:22-cr-20156-KMM in the Southern District of Florida 4,5.
What Stericycle admitted
DOJ described the facts as coming from "the company's admissions and court documents" 1. According to DOJ, Stericycle conspired to corruptly offer and pay about US$10.5 million in bribes to officials in Brazil, Mexico and Argentina from 2011 to 2016 1. DOJ said the bribes were typically cash, calculated as a percentage of payments from government customers, and recorded with code words 1. DOJ said Stericycle earned at least US$21.5 million in profits from the scheme 1.
The SEC order found violations of the FCPA anti-bribery, books and records and internal accounting controls provisions from at least 2012 through 2016 3. The SEC said Stericycle staff kept spreadsheets of government customers that received bribes, using code names including "alfa" 2. The order says Stericycle "benefitted by approximately $22.2 million" 3. In the order, Stericycle admitted the Commission's jurisdiction and consented to the entry of the order 3.
How the amounts break down
The SEC said the total to US and Brazilian authorities was more than US$84 million 2. The SEC put its disgorgement and interest at about US$28.2 million, with a minimum SEC payment of about US$24 million after the offset 2.
| Authority | Amount | Note |
|---|---|---|
| DOJ 1 | US$52.5 million criminal penalty 1 | Up to one-third may be credited against payments in Brazil 1 |
| Brazil (CGU and AGU) 1 | About US$9.3 million 1 | Agreed to pay to resolve investigations by Brazil's CGU and AGU, per DOJ 1 |
| SEC 3 | US$22,184,981 disgorgement plus US$5,999,258.80 interest 3 | Offset of up to US$4,196,719 for payments to Brazil within 12 months 3 |
Credit and the monitor
DOJ said it reached the resolution based on factors including the company's failure to voluntarily and timely disclose the conduct and the nature, seriousness and pervasiveness of the offense 1. DOJ said "Stericycle received full credit for its cooperation with the department's investigation" and carried out extensive remedial measures 1. The penalty reflects a 25% reduction off the bottom of the U.S. Sentencing Guidelines fine range 1.
DOJ said the enhanced compliance program had not been fully implemented or tested, "necessitating the imposition of an independent compliance monitor for a term of two years" 1. The SEC order sets the same monitor term of at least 24 months from retention 3.
Early dismissal in 2025
On 21 April 2025 DOJ filed an unopposed motion to dismiss the information with prejudice 4. The motion says the monitor was retained on 11 November 2022 and certified on or about 20 May 2024 that the compliance program is reasonably designed and implemented 4. It says the DPA term was "scheduled to expire on November 11, 2025" 4. DOJ said Stericycle "has fully complied with all of its obligations under the DPA" 4.
Judge K. Michael Moore granted the motion and ordered the information "DISMISSED WITH PREJUDICE" 5. The docket shows the order entered on 28 April 2025 5.
Common questions
Did Stericycle plead guilty?
No. Stericycle entered a deferred prosecution agreement on two conspiracy counts 1. The charges were dismissed with prejudice in April 2025 5.
How much did Stericycle pay?
DOJ and the SEC put the total at more than US$84 million, including a US$52.5 million DOJ penalty and about US$28.2 million in SEC disgorgement and interest 1,2.
Why was the Stericycle case dismissed early?
DOJ told the court Stericycle had fully complied with its DPA obligations and the monitor had certified its compliance program 4.
Did Stericycle have a monitor?
Yes. An independent compliance monitor was retained on 11 November 2022 for a two-year term 1,4.
Rules and fees change. Check the official site linked above before you apply or pay. Spotted an error? Email [email protected] with the official link.
Sources
- U.S. Department of Justice, Office of Public Affairs: Stericycle Agrees to Pay Over $84 Million in Coordinated Foreign Bribery Resolution (20 April 2022)
- U.S. Securities and Exchange Commission: SEC Charges Stericycle with Bribery Schemes in Latin America, press release 2022-65 (20 April 2022)
- U.S. Securities and Exchange Commission: Order, In the Matter of Stericycle, Inc., Exchange Act Release No. 94760, File No. 3-20826 (20 April 2022)
- U.S. District Court, Southern District of Florida: Government's unopposed motion to dismiss information, United States v. Stericycle, Inc., 22-CR-20156, Document 21 (21 April 2025), court filing copy hosted by Willkie Farr and Gallagher
- U.S. District Court, Southern District of Florida: Order dismissing information with prejudice, United States v. Stericycle, Inc., 1:22-cr-20156-KMM (entered 28 April 2025), court filing copy hosted by Miller and Chevalier
Related
- Deferred and non-prosecution agreements explained
How U.S. deferred prosecution agreements and non-prosecution agreements work for companies, the Justice Manual factors, and what the company admits.
- FCPA resolutions explained
How U.S. Foreign Corrupt Practices Act cases end: declinations, NPAs, DPAs, guilty pleas and SEC actions, with the statute, penalties and DOJ policy.
- Corporate monitors explained
When DOJ and the SEC require an independent compliance monitor, how monitors are chosen and paid, how long they serve, with case examples.
- Voluntary self-disclosure explained
How DOJ and the SEC credit companies that report their own misconduct: the Corporate Enforcement Policy, Justice Manual 9-28.900, the SEC Seaboard report.
- Disgorgement explained
What disgorgement means in SEC and DOJ resolutions: the statute, the 2020 Liu v. SEC ruling, offsets and fair funds, with case examples.