AAR Corp. to Pay $55 Million Over Bribery Scandals in Nepal and South Africa

The aviation services giant admitted to bribing foreign officials to secure contracts, earning $24 million in illicit profits.

AAR Corp. admitted to paying bribes to government officials in Nepal and South Africa between 2015 and 2020 to secure business with state-owned airlines.
The company will pay over $55 million in fines, penalties, and disgorgement as part of settlements with the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC).
Two individuals involved in the schemes, Deepak Sharma and Julian Aires, have pleaded guilty to conspiracy to violate the Foreign Corrupt Practices Act (FCPA).
AAR has implemented extensive compliance reforms, including enhanced anti-corruption measures and third-party vetting protocols, to prevent future misconduct.
The DOJ credited AAR for self-reporting the violations and cooperating with the investigation, leading to a 45% reduction in the criminal penalty.