FCPA Settlement Tied To Cartel Bribes At U.S./Mexico Border

On July 17, 2026, the Department of Justice (DOJ) entered into a three-year deferred prosecution agreement (DPA) with a United States-based agricultural supply chain company (Company) for alleged violations of the Foreign Corrupt Practices Act FCPA).

The allegations related to a multi-year scheme in which the Company directed third-party customs brokers to bribe Mexican officials to bypass border inspections. Under the DPA, the Company will pay a USD9,769,521 criminal penalty and forfeiture of USD414,351.

Payments to border officials

Prosecutors alleged that between 2013 and 2019, the Company conspired with third-party customs brokers to facilitate the successful transit of shipments of corn and other products from Mexico to the United States. Under Mexican law, those shipments were subject to inspection for dirt, soil, and other impurities. When impurities were found, the Company directed its customs brokers to pay bribes to Mexican officials at the border. These bribes, which amounted to approximately USD2,000 per shipment, were paid by the brokers and invoiced back to the Company as reimbursements for inspection fees. Over the course of the six-year conspiracy, more than USD400,000 in bribes were paid to Mexican officials, amounting to over USD6.5 million in avoided fees and costs. 

Cartel links unknown to Company

A portion of the bribes paid in connection with the shipments allegedly benefited individuals associated with a cartel operating at the U.S.-Mexico border, though this was unknown to the Company at the time. Given the apparent nexus to Mexican drug cartels, the enforcement action aligns with the DOJ’s June 9, 2025 Memo, which emphasized that the DOJ’s FCPA enforcement would focus primarily on the elimination of cartels and transnational criminal organizations.

No self-disclosure credit

Notably, the Company did not receive voluntary disclosure credit under the DOJ’s Corporate Enforcement and Voluntary Self-Disclosure Policy because it did not voluntarily and timely disclose the conduct charged. The DOJ’s press release states that it nonetheless entered the DPA with the Company based on consideration of multiple factors, including (i) the nature and seriousness of the offense and (ii) the Company’s lack of knowledge that any benefit was conferred on the cartel. Despite the absence of self-disclosure credit, the Company received credit for cooperating with the DOJ’s investigation and for its timely remediation efforts, including:

1. Enhancing business engagement to increase compliance sensitivity;
2. Restructuring its compliance program based on external assessments, including incorporating senior leadership oversight of compliance and business activities;
3. Ending its engagement with customs brokers associated with reinspection fees in Mexico;
4. Bolstering its internal risk-based monitoring procedures using dedicated software tools;
5. Updating its Code of Conduct and key compliance policies and procedures related to anti-corruption, bribery, conflicts of interest, and third-parties;
6. Enhancing its third-party screening process and third-party contract provisions on anti-corruption and audit rights;
7. Revising financial controls procedures for high-risk transactions; and
8. Implementing anti-corruption training for certain personnel.

The Company ultimately received a 25 percent reduction of the criminal penalty from the bottom of the sentencing guideline range based on its cooperation and remediation.

In a related case, USA v. Alvelais, No. 3:25-CR-02512 (W.D. Tex. Oct. 9, 2025), one of the Company’s third-party customs brokers pleaded guilty to conspiracy to violate the FCPA. On July 20, 2026, he was sentenced to 18 months in prison.

Comment

This is one of several FCPA actions undertaken by the DOJ since the June 2025 memo suggested FCPA cases would be brought more sparingly. This action, and specifically the Company’s inadvertent payments to a transnational drug cartel, reinforces that companies engaging in cross-border work should continue to carefully screen retained customs brokers and other third-party contractors for FCPA compliance.

They should also review their internal compliance, monitoring, and reporting procedures to ensure that personnel involved in high-risk transactions receive regular training and that irregular invoices and other suspicious behavior are promptly detected, reported, and remediated.