SEC Enforcement Actions on Corporate Misconduct: AAR Corp. Bribery Action

The SEC and Justice Department investigated AAR Corp., revealing bribery schemes in Nepal and South Africa to secure business with state-owned airlines, violating the Foreign Corrupt Practices Act. 

The aviation company gained $24 million in profits from these illegal activities between 2015 and 2020. Allen Aircraft Radio (AAR), founded by Ira A. Eichner, began supplying radio equipment for commercial aviation and was soon incorporated in downtown Chicago. 

They resolved the case by paying $55 million and entering an 18-month non-prosecution agreement, committing to future cooperation with investigations. 

This action is part of the SEC's broader enforcement strategy to ensure corporate accountability and fair competition. It emphasizes the importance of robust compliance frameworks to mitigate corruption and promote transparent business practices.