Tomorrow Ryan Braun will accept the National League MVP
Award. He will accept this award for having a superlative 2012 season; which,
as reported by MLB.com,
included a "Batting Average of .332 with 33 home runs and 111 RBIs while
leading the Brewers to the NL Central title." He will also accept this MVP
Award while "facing a 50-game suspension after testing positive for elevated
levels of testosterone late last season." Braun has appealed this suspension
and the matter is currently in the appeals process.
The above came to mind as I read recent blog posts by the
Professor and the FCPA
Blog, that there is a new entry into the Nigerian-Bonney Island Bribery
Scandal. That entrant is the Japanese trading company, Marubeni Corporation,
which the Department of Justice announced it had settled an enforcement action
with this past week. As reported by the FCPA Professor, Marubeni was retained
by the joint venture, TSKJ, "to help it obtain and retain business in Nigeria,
including by offering to pay and paying bribes to Nigerian government
Pursuant to the Deferred Prosecution Agreement, Marubeni
agreed to pay a penalty of $54.6 million. Marubeni was paid over $51
million for its services by TSJK so its overall penalty is assessed at slightly
more than it received for services it rendered. As noted by the FCPA Professor,
" the advisory Sentencing Guidelines range for the charges at issue was $54.6
million - $109.2 million- a rare instance in which the fine amount is within
the guidelines range."
With this recent enforcement action we present the
following updated Nigerian Bribery Scandal Box Score, new and improved with
both Corporate and Individual Divisions:
SETTLEMENT BOX SCORE
Entity or Person
Fine, Penalty and Disgorgement of Profits
Halliburton + KBR
Snamprogetti & ENI
(not yet determined)
So for those of you keeping score at home, there have
been fines, penalties and profit disgorgement of over $1.72 billion.
All of this for bribes paid on, by, or on behalf of TSJK. This JV won four
contracts, worth more than $6 billion, from the Nigeria government between 1995
and 2004 to build LNG facilities on Bonny Island.
This total settlement figure does not include any
potential costs going forward such as reduction of credit ratings, the payment
of legal fees and any forensic accounting fees during the pendency of the DPA.
The costs listed above do not include the total cost paid by Marubeni for its
internal company investigation into this matter. However, based upon the
reported fees to date paid by the other defendants, these investigation fees
will surely be in the tens of millions of US$. Additionally the above Box Score
does not take into account any fines or penalties paid by the defendants to the
So what is the difference between Marubeni and Ryan
Braun? It appears he can accept his MVP Award. Stay tuned for the results of
his appeal and whether he can keep his MVP Award. Or as the English might say,
"watch this space." Good Friday to all.
Visit the FCPA Compliance and Ethics Blog,
hosted by Thomas Fox, for more commentary on FCPA compliance, indemnities and
other forms of risk management for a worldwide energy practice, tax issues
faced by multi-national US companies, insurance coverage issues and protection
of trade secrets.
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© Thomas R. Fox, 2012
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