The Serious Fraud Office (SFO) today accused a UK insurance broker of failing to prevent international bribery
Representatives of United Insurance Brokers Limited (UIBL) were ordered to appear before Westminster Magistrates’ Court next month.
The broker is charged with failing to prevent associates from bribing state officials in Ecuador between October 2013 and March 2016.
The SFO alleges UIBL’s US-based intermediaries for Ecuador paid bribes in return for the awarding of re-insurance contracts worth US$38 million.
If this case proceeds to a contested trial, it will be the first time that an SFO “failure to prevent bribery” case is heard by a jury.
UIBL offered re-insurance services which insure against any losses caused by making significant and unexpected payouts for insurance policies.
This was sold to state insurers covering parts of the Ecuadorian public sector, including the state water and electricity companies.
UIBL received a US$6.2 million commission to provide these services, of which US$3 million was allegedly paid to intermediaries.
The intermediaries are accused of subsequently paying bribes to an Ecuadorian official in exchange for the contracts.
Nick Ephgrave QPM, Director of the Serious Fraud Office, said:
Representatives of the company will appear before Westminster Magistrates’ Court on Wednesday 7 May to face the charges.