Cadwalader FCPA Advisor: Technip DPA, DOJ Corporate Monitor Guidance, DOJ FCPA Opinion Release, and more

Cadwalader FCPA Advisor: Technip DPA, DOJ Corporate Monitor Guidance, DOJ FCPA Opinion Release, and more

In This Issue:

Technip Enters into DPA with DOJ, Pays $338 Million Settlement

Department of Justice Guidance on Company Disputes with Corporate Monitors

First DOJ FCPA Opinion Procedure Release in 2010

Financial Reform Bill Compensates Whistleblowers Assisting the SEC

Breuer Cautiously Approaches Costly FCPA Cases

 

Technip Enters into DPA with DOJ, Pays $338 Million Settlement

 On June 28, 2010, the U.S. Department of Justice (DOJ) announced that it had entered into a deferred prosecution agreement (DPA) with French construction and engineering company Technip SA ("Technip"). Technip settled FCPA-related charges by agreeing to pay a $240 million criminal penalty and engaging a monitor. Additionally, the Securities and Exchange Commission (SEC) charged that Technip violated the books and records and internal controls provisions of the Act in the bribery scheme. In settling the civil SEC complaint, Technip agreed to pay an additional $98 million in disgorgement of profits.

A criminal information, filed in the U.S. District Court for the Southern District of Texas, charged Technip with one count of conspiracy to violate the FCPA and one substantive count of violating the FCPA's anti-bribery provision. These charges arose from the company's role in a four-company joint venture that paid over $100 million in bribes to Nigerian government officials over the course of a decade in order to secure

construction contracts, valued at over $6 billion, to build liquefied natural gas facilities on Nigeria's Bonny Island.6 The joint venture consisted of Technip, Kellogg, Brown and Root, Inc. (KBR), Italy's Snamprogetti, and JGC Corporation, once known as Japan Gasoline Co., Ltd. According to the information, the joint venture hired agents who paid bribes to high-level Nigerian government officials in return for the construction contracts for the Bonny Island project.

KBR, a former subsidiary of Halliburton, and Halliburton previously agreed to pay almost $600 million in fines related to the same scheme in 2009.8 In addition, in September 2008, KBR's former CEO, Albert "Jack" Stanley pleaded guilty to conspiring to violate the FCPA for his role in the bribery scheme. [footnotes omitted]

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