International bus parts supplier CBM has signed a non-prosecution agreement with the U.S. Attorney’s Office. Under the NPA, CBM agreed to pay significant monetary penalties for engaging in a scheme to defraud U.S. transit authority customers through false and misleading statements about the sources of contracted-for bus parts from approximately 2010 to April 2021.
Specifically, the NPA requires CBM to forfeit $463,243.41 to the United States, representing its profits from the scheme, and pay a fine of $1,500,000.
In addition, CBM has agreed to pay restitution to victims who submit claims and to revert unclaimed funds up to $438,859.52 to the Crime Victims Fund, administered by the Department of Justice’s Office for Victims of Crime.
The NPA also requires that for at least two years from the date of the agreement, CBM will further cooperate with the United States, self-report any future violations of U.S. law, and continue its ongoing efforts to implement and maintain an adequate compliance program.
In the event that CBM violates the NPA, the U.S. Attorney’s Office may prosecute CBM for any newly discovered criminal activity and for the conduct that gives rise to the NPA.
This corporate action reflects a careful weighing of factors relevant to the appropriate corporate resolution.
The NPA recognises that, although CBM’s serious misconduct was reported to the U.S. Attorney’s Office before CBM self-disclosed it, CBM US cooperated extensively with the U.S. Attorney’s Office, including through detailed disclosures and accountings of conduct not already known when CBM’s cooperation began.
Similarly, the most serious wrongdoing at CBM was limited to two individuals, though they were at the highest levels of the company. CBM has no history of criminal conduct, including any resolved through prior NPAs or deferred prosecution agreements.
CBM has undertaken extensive remedial measures to ensure that similar conduct does not occur or go undetected in the future. CBM has taken full responsibility and agreed to make full restitution to all victims who seek compensation.
