Medical waste disposal provider Stericycle has resolved anti-corruption investigations involving its legacy Latin American business.
The Illinois-based company came to a settlement with the U.S. Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC), as well as Brazilian authorities – both the Comptroller General's Office (CGU) and the Attorney General's Office (AGU) on alleged anti-corruption activities that prompted an investigation in 2017.
President and CEO Cindy J. Miller commented: "resolving this legacy matter represents another important milestone in Stericycle's business transformation journey. Over the past several years, we have focused on fully remediating the issues identified during the investigation. This includes instituting new policies, procedures and internal controls and building a culture of compliance, integrity and accountability that aligns with our core values across our entire global operation.
The investigations dove into conduct on the part of employees in Argentina, Brazil and Mexico. Stericycle stated that it has completed sales of its operations in Argentina and Mexico. It remains active in Brazil.
Though the settlement, the company has agreed to pay nearly $90 million in fines, which it will take from revenues accrued in the third and fourth quarters of 2021. As a result, no enforcement will take place for three years if it meets outlined obligations. An independent compliance monitor will work with Stericycle for two years, followed by a self-reporting period of a year.
The company completed its own internal investigation and incorporated a global anti-corruption compliance program for every country in which it does business. It also has established an Operations, Safety and Environmental Committee to create more oversight that reports directly to Miller.
As part of the deferred prosecution agreement, it has since added new executive leadership and board members and other oversight included a chief ethics and compliance officer. Stericycle also has revamped its code of conduct and internal controls around "a nti-corruption, retention and management of commercial agents and other third parties, and gifts, travel and entertainment."
A focus on internal reporting, investigations and risk assessment were also realized. Furthermore, it has removed all employees who were involved in the scandal.