International oil field service company agrees to settle FCPA claim for $29 million in disgorgement and penalties
An international oil field service company recently settled allegations that the company improperly steered business to the friend of an Angolan official in exchange for that official awarding various oil contracts to the company. In total, the company agreed to pay the SEC $29.2 million, comprising $14 million in disgorgement, $1.2 million in prejudgment interest, and a $14 million penalty. The company’s former vice president also agreed to pay the SEC a $75,000 penalty related to these violations and other accounting irregularities.
This is the most recent settlement in a series of FCPA enforcement actions focusing on the company’s procurement processes and operations in various countries. A former subsidiary of the company settled similar FCPA allegations in 2009 related to alleged bribes paid to Nigerian officials to procure contracts in that country.
This settlement also highlights the role of whistleblowers in driving FCPA and other enforcement actions. A whistleblower employed by the company first alerted the company to potential FCPA issues in 2010, which resulted in the launching of an investigation into the allegations.