Liberty Mutual Gets First DOJ Bribery Deal in New Trump Term (1)

Liberty Mutual will pay $4.7 million to avoid criminal bribery charges involving an Indian subsidiary, the first corporate action since the Trump Justice Department unfroze enforcement of foreign corruption law.

President Donald Trump issued an executive order in February halting new overseas bribery cases and DOJ subsequently issued a policy that resumed probes with a narrower scope to benefit US businesses. The resolution Monday suggests white-collar prosecutors still have at least some leeway to pursue matters at US-headquartered multinationals.

Under the agreement, known as a declination, published by DOJ’s criminal fraud section, Liberty Mutual disclosed evidence—verified by prosecutors—that its operation in India paid nearly $1.5 million in bribes through an intermediary to six state-owned banks. The banks then referred customers to Liberty Mutual insurance products in India, resulting in $9.2 million in revenue and $4.7 million in profits, DOJ said.

The global insurance company is paying back the full profit total in a case DOJ officials may use to demonstrate that the 1977 Foreign Corrupt Practices Act hasn’t disappeared even after Trump declared the statute harms global development of US companies.

While declinations are coveted by defense lawyers for eliminating a company’s criminal exposure, the department managed stricter terms for Liberty Mutual than had it outright closed the investigation or dismissed a pre-charged case ahead of trial—as other defendants and corporate targets have lobbied DOJ to do this year.

It’s still a relatively small dollar figure, and it’s uncertain whether the company’s declination after stepping forward to confess to DOJ in March 2024, rather than a guilty plea or deferred prosecution agreement, will lead to deterrence. Declinations provide public accountability and require penalties but are viewed by defense lawyers as a successful outcome for businesses taking the risk of voluntarily disclosing internal wrongdoing.

“We are pleased the DOJ acknowledged our proactive approach and affirmed our commitment to integrity and compliance across our global enterprise,” said a Liberty Mutual spokesperson in a statement. “We welcome this conclusion and, in addition to already taking decisive steps to address this matter, will continue to uphold our values and act responsibly everywhere we do business.”

The company was represented by lawyers from Holland & Knight in the matter.

The department didn’t specify whether charges are being pursued against any of the individuals who facilitated the bribes, but noted Liberty Mutual’s “separation from personnel involved in the misconduct” and its cooperation with the government’s ongoing investigation.

The Liberty Mutual resolution would require senior DOJ review to ensure adherence to FCPA enforcement guidelines issued by Deputy Attorney General Todd Blanche in June. Blanche called for a focus on matters with links to cartels and transnational criminal organizations, that advance national security, and prioritize serious misconduct.

The Liberty Mutual enforcement action doesn’t on its face appear to meet that criteria, but Blanche said the guidelines weren’t exhaustive.

After months of debate on the impact of Trump’s order, the latest resolution resembles the structure of prior declinations DOJ has published—most recently for Boston Consulting Group.

In the department’s corporate enforcement and voluntary self-disclosure policy, declinations are offered to companies that self-disclose misconduct, cooperate with investigations, remediate, and have no aggravating factors—such as a recent history of similar violations.