The Serious Fraud Office (SFO) has filed a corporate prosecution against United Insurance Brokers Limited (UIBL), a UK-based insurance broker, over alleged failures to prevent bribery involving foreign public officials.
According to the SFO, UIBL failed to stop associates from making corrupt payments to officials in Ecuador between October 2013 and March 2016. It is alleged that intermediaries linked to UIBL, operating out of the United States, paid bribes in exchange for securing contracts valued at $38 million.
Further details provided by the SFO allege that UIBL earned a $6.2 million commission for its role in reinsurance services, with approximately $3 million of that amount paid to intermediaries based in the United States. These intermediaries are accused of using the funds to make illicit payments to Ecuadorian officials to obtain reinsurance business.
UIBL has previously said that the charges relate to historical allegations dating back to the 2013 to 2016 period. The company clarified that no current or former employees have been individually charged and emphasised that the allegations concern the actions of third-party intermediaries based in Ecuador and the United States, rather than its internal personnel.
United Insurance Brokers Limited operates as a reinsurance broker at Lloyd’s of London and was established in 1987 following a management buyout of Marsh McLennan’s Middle East operations.
If the matter proceeds to trial, it will mark the first time the SFO has brought a “failure to prevent bribery” case before a jury. The charge relates to provisions under the UK Bribery Act 2010, which introduced corporate liability for failing to prevent associated persons from engaging in bribery on a company’s behalf.
A trial could set a legal precedent in the UK by establishing how juries assess corporate liability under the Act, which has previously been resolved mainly through settlements and Deferred Prosecution Agreements.
The action reflects recent comments by Nick Ephgrave (pictured above), QPM, director of the SFO, who indicated the agency would take a more assertive approach to investigating corporate crime and fraud. The case against UIBL signals an active period of enforcement for the agency under his leadership.
Other insurance intermediaries have faced related scrutiny in similar investigations. Firms such as Tysers and HW Wood entered into Deferred Prosecution Agreements with the US Department of Justice in cases involving allegations of bribery tied to Ecuadorian officials between 2013 and 2017, highlighting a broader pattern of enforcement action in the insurance sector linked to Latin American business dealings.
The SFO has also recently issued updated guidance on corporate co-operation and enforcement relating to criminal offences by companies. The guidance outlines the standards expected from businesses when engaging with the SFO, particularly in matters involving self-reporting of misconduct.
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