CONFLICTS

US fines Chile-based airline LATAM $22 million over bribes

  • An agent of LATAM airlines stands by the counters at the airport in Santiago, Chile, Monday, July 25, 2016. LATAM airlines created in 2012 after a fusion between the airlines LAN of Chile and TAM of Brazil, has agreed to pay more than $22 million in fines related with a scheme to bribe Argentine union officials via a false consulting contract. The airline will pay the fine to the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) for a violation of the accounting provisions of the Foreign Corrupt Practices Act. (AP Photo/Esteban Felix)

    An agent of LATAM airlines stands by the counters at the airport in Santiago, Chile, Monday, July 25, 2016. LATAM airlines created in 2012 after a fusion between the airlines LAN of Chile and TAM of Brazil, has agreed to pay more than $22 million in fines related with a scheme to bribe Argentine union officials via a false consulting contract. The airline will pay the fine to the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) for a violation of the accounting provisions of the Foreign Corrupt Practices Act. (AP Photo/Esteban Felix)  (The Associated Press)

  • Two LAN jet liners sit parked on the tarmac at the airport in Santiago, Chile, Monday, July 25, 2016. LATAM airlines created in 2012 after a fusion between the airlines LAN of Chile and TAM of Brazil, has agreed to pay more than $22 million in fines related with a scheme to bribe Argentine union officials via a false consulting contract. The airline will pay the fine to the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) for a violation of the accounting provisions of the Foreign Corrupt Practices Act. (AP Photo/Esteban Felix)

    Two LAN jet liners sit parked on the tarmac at the airport in Santiago, Chile, Monday, July 25, 2016. LATAM airlines created in 2012 after a fusion between the airlines LAN of Chile and TAM of Brazil, has agreed to pay more than $22 million in fines related with a scheme to bribe Argentine union officials via a false consulting contract. The airline will pay the fine to the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) for a violation of the accounting provisions of the Foreign Corrupt Practices Act. (AP Photo/Esteban Felix)  (The Associated Press)

U.S. authorities say Latin America's largest airline has agreed to some $22 million in civil and criminal fines in connection with a scheme to pay bribes to end a labor strike in Argentina a decade ago.

Chile-based carrier LATAM will pay $12.75 million to the U.S. Justice Department and $9.4 million including interest to the U.S. Securities and Exchange Commission.

The penalties stem from an investigation into payments made in 2006 by LAN airlines, which merged with Brazil's TAM in 2012 to create LATAM.

The Justice Department said in a Monday statement that LAN had entered into a "fictitious $1.15 million consulting agreement with an advisor to the Secretary of Argentina's Ministry of Transportation." It said no consulting services were provided and the money was funneled to union officials.