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SEC v. Chevron Corporation

 
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Chevron Corp. - Chevron Corp.
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SEC Civil
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November 14, 2007
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SEC v. Chevron Corporation
:
SEC v. Chevron Corporation, Civil Action No. 07 CIV 10299 (S.D.N.Y. 2007)
:
As in other Oil-for-Food cases, the government did not allege bribery of any individual foreign government officials.
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Energy (Non-Utility)-Oil & Gas-Other/Multi
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Iraq
:
2000; 2001; 2002
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Iraq's State Oil Marketing Organization
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In April 1995, the U.N. adopted Security Council Resolution 986 which permitted Iraq to sell its oil and to use proceeds from those sales to purchase humanitarian supplies such as food for the Iraqi people ("U.N. Oil-for-Food Program" or "OFF"). In an extensive scheme, the Iraqi government received illicit payments in the form of surcharges from oil purchasers and kickbacks, often termed "after sales service fees," from humanitarian goods suppliers. The kickback payments were masked by inflating the contract price, usually by 10% of the contract value. Chevron Corp. ("Chevron") settled this action with the SEC without admitting or denying the following facts alleged in the SEC's complaint:
From approximately April 2001 through May 2002, Chevron allegedly purchased 78 million barrels of crude oil from Iraq pursuant to 36 contracts with third parties, paying premiums to third parties that, in turn, were paid to Iraq's State Oil Marketing Organization ("SOMO") as illegal surcharges, paid to bank accounts in Jordan and Lebanon controlled by the Iraqi government and in the names of Iraqi government officials and other individuals. The complaint alleges that Chevron violated the books and records and internal controls provisions of the FCPA by improperly recording the true nature of the payments and by failing to detect such improper payments.
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Books and records (Issuer), Internal controls (Issuer)
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Civil penalty, Disgorgement, Injunction/Cease and desist
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The sanction consisted of $25,000,000 in disgorgement, which was satisfied by Chevron's payments to the DOJ, and a $3,000,000 civil penalty.
:
28,000,000
:
0
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Issuer
:
U.S.
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Contract Procurement/Retention
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Not stated.
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Wire/check
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Sales Agent/Consultant
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20,000,000
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Iraq
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Jordan, Lebanon
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No
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No