DOJ Announces First FCPA Deferred Prosecution Of 2026: Key Takeaways From Scoular’s $10 Million Resolution

Key Takeaways:

• DOJ’s latest FCPA enforcement action involving The Scoular Company (“Scoular”), an Omaha-based agricultural supply chain company, targeted a years-long scheme to bribe Mexican officials to allow importation into Mexico of shipments of corn and other products.
• The flow of some of the bribes from third parties paid by Scoular to cartel associates contributed to the seriousness of the offense, notwithstanding Scoular employees’ lack of awareness of this conduct.
• The resolution against Scoular demonstrates DOJ’s continued focus on bribery in Mexico that also implicates cartel activity—conduct in-line with its stated enforcement priorities under the June 2025 FCPA Guidelines.
• Once again, a DOJ FCPA enforcement action cited WhatsApp messages discussing bribes as evidence—in this case, those of the company’s employees.
• Scoular will pay over $10 million, reflecting some credit for cooperation and remediation, though the company did not receive the steeper discounts available for voluntary self-disclosure.
• No monitor will be imposed—Scoular will self-report over the three-year DPA term.

The FCPA Violation: Bribe Payments to Border Inspectors

On July 17, 2025, DOJ announced that The Scoular Company, an agricultural supply chain company headquartered in Omaha, Nebraska, entered into a three-year deferred prosecution agreement (DPA) in connection with a criminal information filed in the Western District of Texas, charging conspiracy to violate the anti-bribery provisions of the U.S. Foreign Corrupt Practices Act, 15 U.S.C. §78dd-1 et seq. (FCPA).

According to DOJ, court documents it filed show that between 2013 and 2019, Scoular allegedly relied on multiple third-party customs brokers to ensure its shipments of corn and other agricultural products successfully crossed from the United States into Mexico. Under Mexican law, those shipments were subject to inspection for dirt, soil, and other impurities. Scoular’s employees were informed by at least one of their brokers that some of their shipments contained impurities. Rather than address non-compliant shipments, Scoular allegedly authorized the customs brokers to bribe Mexican officials to allow its shipments to pass despite inspection findings. At the direction of Scoular employees, brokers allegedly paid bribes of approximately $2,000 per Scoular train and invoiced the bribes back to Scoular for reimbursement as "reinspection fees."

According to the criminal information, Scoular authorized bribes of more than $400,000 and avoided fees and costs of more than $6.5 million.

In a related case, Carlos Leopoldo Alvelais, a customs broker who paid bribes on behalf of Scoular, previously pleaded guilty to conspiracy to violate the FCPA on October 23, 2025. The individual prosecution is consistent with DOJ's repeatedly stated emphasis on prioritizing individual accountability.

Cartel Nexus and National Security Framing

DOJ alleged that a portion of the bribes allegedly paid in connection with Scoular's shipments ultimately benefited persons associated with the criminal operations of a cartel operating at the U.S.-Mexico border. Notably, DOJ cited this as a reason it considered the FCPA scheme by a U.S. company to be a serious offense—even though, according to DOJ, Scoular and its employees did not know about this connection.

Officials quoted in DOJ’s press release emphasized the connection to “dangerous cartel activity” and “Mexican drug cartels,” with third parties paid by Scoular. In particular, DOJ’s press release highlighted the role of cartels in monitoring commerce across the Mexican border.

This framing directly aligns with the 2025 FCPA Guidelines, which instruct prosecutors to prioritize FCPA cases that involve corruption facilitating cartels and transnational criminal organizations (TCOs). (For additional analysis of these policies, see our prior discussion of 2025 policy pronouncements and our preview of FCPA activity for this year).

At bottom, DOJ has clearly signaled that companies operating at or near the U.S.-Mexico border face heightened scrutiny because of the potential to trace alleged corrupt payments to eventual cartel funds. This is in line with announcements over the past year from the U.S. Treasury Department noting the dangers of cartel involvement in trans-border commerce between the United States and Mexico and trade-based money laundering in Mexico.

DPA Terms and Cooperation Credit

Scoular agreed to pay a total of $10,183,872, consisting of a criminal penalty ($9,769,521) and forfeiture ($414,351). The criminal penalty reflects a 25% reduction off the bottom of the applicable U.S. Sentencing Guidelines fine range, attributed to Scoular’s cooperation and remediation credit. However, DOJ did not grant Scoular credit for voluntary self-disclosure, which would have resulted in a significantly lower penalty under DOJ's Corporate Enforcement and Voluntary Self-Disclosure Policy.

Scoular was not required to retain an independent compliance monitor. Instead, the company will periodically report to DOJ on remediation and implementation of compliance measures throughout the DPA’s term. The company will also continue to engage in improved compliance efforts. The decision not to appoint a monitor may reflect DOJ’s determination that Scoular’s proposed remediation measures would sufficiently ensure compliance with the FCPA going forward, thereby meriting less burdensome oversight of the company.

Although Scoular did not self-disclose, DOJ credited the company for its cooperation, which included conducting an internal investigation and providing evidence and detailed factual presentations that advanced DOJ's investigation.

DOJ also credited Scoular for its remedial measures, which according to the DPA included a comprehensive overhaul of the company's compliance program—restructuring its compliance function with senior leadership oversight, eliminating the use of customs brokers associated with reinspection fees in Mexico, implementing enhanced third-party due diligence and risk-based screening requirements, revising its Code of Conduct and key anti-corruption policies, strengthening financial controls for high-risk transactions, and providing targeted anti-corruption training to relevant personnel. The remediation efforts here highlight the recurring importance of third-party diligence in high-risk jurisdictions to mitigate FCPA risk.

Implications for Compliance Programs

U.S. businesses engaged in cross-border shipments with Mexico should review their compliance programs to ensure they are addressing risks associated with the use of customs brokers and other intermediaries involved in the exportation or importation of goods to or from Mexico. 

In particular:

• Conduct enhanced anti-corruption and sanctions-focused third-party due diligence on local intermediaries that are used to facilitate customs, permitting, or obtaining logistics approvals from government officials.
• Train intermediaries on the company’s anti-corruption and sanctions policies.
• Retain audit inspection rights in agreements with third parties.
• Require robust documentation of services provided and fees paid, and ensure those fees are commercially reasonable.
• Update due diligence on third parties regularly.
• Retain robust records of transactions with third-party intermediaries and due diligence efforts.
• Train employees regarding communications with third parties on social media.

Companies should also ensure that their internal compliance and investigation procedures are capable of detecting irregularities in payments and invoicing and escalating problematic conduct for review. DOJ’s Corporate Enforcement and Voluntary Self-Disclosure Policy encourages companies to self-report illegal activity in exchange for reduced penalties and even non-prosecution agreements. However, Companies that fail to identify and investigate problematic conduct risk significantly higher penalties. Companies should incorporate voluntary disclosure procedures into existing compliance policies to minimize potential exposure.