Key Takeaways
- The Scoular Company agreed to pay over $10 million to resolve FCPA charges related to bribing Mexican customs officials through third-party brokers, marking the DOJ’s first FCPA deferred prosecution agreement of 2026.
- The DOJ emphasized cartel connections as an enforcement priority, noting that bribe payments ultimately benefited cartel-affiliated individuals, even though Scoular was reportedly unaware of that link. Companies operating in high-risk jurisdictions should assess whether intermediaries could redirect funds to criminal organizations.
- Voluntary self-disclosure remains critical for maximizing penalty reductions. Scoular received a significant reduction for cooperation and remediation but did not receive the more substantial credit available for timely voluntary disclosure to the DOJ’s Fraud Section.
On July 17, the U.S. Department of Justice (DOJ) announced that The Scoular Company (Scoular), a Nebraska-based agricultural supply chain company, agreed to pay more than $10 million to resolve allegations that it used third-party customs brokers to bribe Mexican officials facilitating shipments across the U.S.-Mexico border.
The resolution is the DOJ’s first Foreign Corrupt Practices Act (FCPA) deferred prosecution agreement (DPA) announced in 2026 and provides additional insight into the department’s evolving enforcement priorities. In particular, the DOJ emphasized that a portion of the payments ultimately benefited individuals associated with a Mexican cartel, even though Scoular and its employees reportedly did not know of that connection.
The case demonstrates that the DOJ continues to pursue traditional foreign bribery cases while framing certain violations through the administration’s broader national security focus on cartels and transnational criminal organizations (TCOs).
Background on FCPA Bribery Scheme Involving Mexican Customs Brokers
As part of the resolution, Scoular entered into a three-year DPA in connection with criminal information that charged one count of conspiracy to violate the FCPA’s anti-bribery provisions.
According to the DOJ, Scoular relied on several customs brokers between 2013 and 2019 to move shipments of corn and other agricultural products from the United States into Mexico. Mexican authorities inspected those shipments for dirt, soil and other impurities.
According to the DOJ, when inspections identified impurities, Scoular authorized its brokers to make payments to Mexican officials so that the shipments could cross the border. The brokers generally paid approximately $2,000 per train and invoiced Scoular for reimbursement by describing the payments as “reinspection fees.”
Cartel Connection Shapes DOJ’s Enforcement Rationale
Although the alleged conduct resembles a conventional FCPA case involving third-party intermediaries and payments to customs officials, the DOJ emphasized that some of the money ultimately benefited individuals associated with a cartel operating along the U.S.-Mexico border.
While acknowledging that Scoular and its employees were reportedly unaware of the cartel connection, the DOJ cited that connection when discussing the seriousness of the offense.
Assistant Attorney General A. Tysen Duva stated that the resolution demonstrates how bribery and corruption can affect both competition and national security interests related to cartel activity. The U.S. Attorney for the Western District of Texas stressed that businesses engaged in cross-border commerce have a responsibility to avoid transactions that benefit cartels.
This framing is consistent with the DOJ’s June 2025 FCPA enforcement guidelines, which directed prosecutors to prioritize cases involving corruption that facilitate the operations of cartels and TCOs. The Scoular resolution indicates that the DOJ may consider this priority implicated even when a company does not know that its payments will ultimately reach cartel-affiliated individuals.
Companies operating in high-risk jurisdictions should therefore consider not only the immediate recipient and stated purpose of a payment but also whether intermediaries, subcontractors or government officials could redirect funds to criminal organizations. Additionally, payments made to or other transactions with parties designated under U.S. sanctions, even if indirect, can trigger liability under U.S. sanctions. (Many narcotics traffickers and TCOs are so designated.)
For SEC-reporting companies, these transactions may also trigger disclosure obligations. Section 13(r) of the Securities Exchange Act requires issuers to disclose certain transactions knowingly conducted by them or their affiliates with persons blocked under Executive Order 13224. Following Executive Order 14157 and the subsequent designation of several cartels as terrorist organizations under Executive Order 13224, this requirement may extend to dealings with those designated cartels and their affiliates.
Scoular DPA Terms and Cooperation Credit Details
Under the DPA, Scoular agreed to pay a criminal penalty of approximately $9.77 million and forfeit approximately $414,000, for a total payment exceeding $10 million.
The DOJ did not award Scoular voluntary self-disclosure credit because the company did not voluntarily and timely disclose the conduct to the Criminal Division’s Fraud Section. Scoular nevertheless received cooperation credit for conducting an internal investigation, providing detailed factual presentations, identifying individuals involved in the misconduct, and producing relevant documents. The DOJ also credited Scoular’s remediation efforts.
Based on the company’s cooperation and remediation, the DOJ applied a 25% reduction from the bottom of the applicable Sentencing Guidelines range. The company must periodically report to the DOJ regarding its remediation and implementation of compliance measures during the three-year DPA term.
Key FCPA Compliance Lessons from the Scoular Case
The Scoular resolution reinforces several recurring FCPA compliance principles. First, companies remain responsible for corruption risks created by customs brokers, freight forwarders and other third parties involved in cross-border transactions. Payments described as customs fees, inspection charges, expediting payments or, as in this case, “reinspection” costs should receive heightened review when they are unusual, poorly documented, in round amounts, or inconsistent with applicable law.
Second, companies should evaluate the full payment chain surrounding third-party transactions. The DOJ’s focus on the ultimate cartel beneficiaries suggests that a company’s risk assessment should extend beyond the party receiving funds directly.
Finally, the difference between the credit available for cooperation and the potentially greater benefits of voluntary self-disclosure remains significant. Scoular received a reduced penalty for cooperating and remediating, but it did not receive the more substantial benefits that may be available when a company promptly identifies and voluntarily reports misconduct.
What Should Companies Expect from DOJ FCPA Enforcement in 2026?
The Scoular resolution confirms that the DOJ remains active in FCPA enforcement and is seeking to connect bribery cases to broader national security objectives.
Companies engaged in cross-border commerce, particularly along the U.S.-Mexico border, should review their relationships with customs brokers and other intermediaries. Compliance teams should examine how inspection fees, permitting payments and logistics expenses are approved, documented and audited.
Businesses should also consider whether their third-party diligence procedures adequately address downstream risks, including the possibility that payments could benefit cartels or other TCOs without the company’s direct knowledge. As the DOJ continues implementing its current FCPA enforcement priorities, companies may face scrutiny not only for whom they pay, but also for where those payments ultimately go.