Editing 1976 Lockheed Bribery Scandal (section)

==Outcomes and Reforms==
U.S. Legal Consequences:  
Lockheed faced a $24.4 million fine in 1976, the largest corporate penalty at the time, and pleaded guilty to tax evasion and false reporting, per The New York Times. Executives Daniel Haughton and Carl Kotchian resigned, avoiding prosecution due to plea deals. The scandal prompted the Foreign Corrupt Practices Act (FCPA) of 1977, criminalizing bribes to foreign officials and mandating corporate transparency, a landmark anti-corruption law. The fine was minimal in comparison to the profits generated by the corruption. The fact that no one was held accountable or went to jail, despite overwhelming evidence of crimes led to the continuation of the practice despite the new legislation as illustrated by other companies such as Loral.

The SEC and Internal Revenue Service (IRS) tightened oversight of defense contractors, leading to audits of Boeing, Northrop, and McDonnell Douglas, which admitted similar practices, per The Wall Street Journal.