Aerospace Firm AAR Settles U.S. Charges Over Bribing Foreign Officials

Global aerospace company AAR Corp. has agreed to resolve U.S. charges involving schemes to bribe officials in Nepal and South Africa, the U.S. Department of Justice and the Securities and Exchange Commission (SEC) announced.

AAR will pay over $55 million to settle investigations by the Justice Department and the SEC into violations of the Foreign Corrupt Practices Act. I Photo: AAR Corp.

AAR will pay over $55 million to settle investigations by the Justice Department and the SEC into violations of the Foreign Corrupt Practices Act, which prohibits corrupt payments to foreign government officials.

Deepak Sharma, a former executive of an AAR subsidiary, pleaded guilty in August for his role in the Nepal scheme, while Julian Aires, a third-party agent for AAR, pleaded guilty in July for his involvement in the South Africa scheme.

The company entered an 18-month non-prosecution agreement with the Justice Department, which acknowledged AAR's cooperation during the investigation. The firm plans to fund the settlement using a combination of cash on hand and borrowings under its revolving credit facility.

From 2015 to 2020, AAR admitted to conspiring to pay bribes to government officials to secure business with state-owned airlines in Nepal and South Africa.