Earlier this year the Securities and Exchange Commission
announced a new initiative encouraging cooperation. They wanted to start using Cooperation
Agreements, Deferred Prosecution Agreements, and Non-prosecution Agreements.
They finally got use one of their shiny new tools. The
SEC announced that Tenaris S.A. entered into a Deferred Prosecution Agreement.
The SEC alleged that Tenaris, a global manufacturer of
steel pipe products, violated the Foreign Corrupt Practices Act by bribing
Uzbekistan government officials during a bidding process to supply pipelines
for transporting oil and natural gas. Tenaris made almost $5 million in profits
from those contracts. As part of the DPA, the SEC is requiring Tenaris to cough
up $5.4 million.
In addition to paying cast, Tenaris needs to do the
following under the DPA:
additional commentary on developments in compliance and ethics, visit Compliance Building,
a blog hosted by Doug Cornelius.
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