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U.S. v. Vetco Gray Controls Inc.

 
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Vetco Gray Controls Inc.
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DOJ Criminal
:
January 7, 2007
:
U.S. v. Vetco Gray Controls Inc.
:
U.S. v. Vetco Gray Controls Inc., 4:07-cr-00004-1 (S.D. Tex. 2007)
:
This is the second action brought against the Vetco Gray group of entities. As explained in entries for ABB Vetco Gray, Inc. and ABB Vetco Gray UK, the Department's enforcement proceedings against ABB Vetco Gray, Inc. and ABB Vetco Gray UK for violations of the FCPA to secure contracts were resolved through a plea agreement.
:
Energy (Non-Utility)-Oil & Gas-Exploration/Production
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Nigeria
:
2002; 2003; 2004; 2005
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Officials of Nigerian Customs Service.
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Vetco Gray UK in conjunction with Vetco Gray Controls entered into a contract to construct equipment needed for subsea operations in Nigeria. Vetco Gray UK agreed with Vetco Gray Controls that Vetco Gray Controls would coordinate many of the logistics involved with the contract, including customs coordination and clearance. Employees and agents of Vetco Gray Controls hired a freight-forwarder who was responsible for all of the arrangements of the clearing of customs for the goods and equipment to be used in Nigeria. The freight-forwarder was in charge of obtaining the required documents and approvals from the Nigerian Customs Service (NCS). From 2002 through 2005, the freight-forwarder bribed NCS officials on 61 occasions with an amount totaling $21 million. The payments were made to induce NCS officials to provide Vetco Gray UK and Vetco Gray Controls preferential treatment in the customs clearance process and to secure an improper advantage with respect to the importation of goods and equipment to Nigeria. Employees of Vetco Gray Controls Limited, Vetco Gray UK and Vetco Gray Controls Inc. were often in contact with the freight forwarder. The payments were made with the knowledge and authorization of Vetco Gray UK and Vetco Gray Controls.
:
Anti-bribery (Domestic Concern)
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Compliance Monitor, Fine, Plea, Probation
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Vetco Gray agreed to a guilty plea, as well as a three-year supervised probation with a compliance monitor, a fine of $6 million, and an assessment of $9,600.
:
6,009,600
:
0
:
Total Offense Level: 30 (Base Offense of 12 plus Specific Offense Characteristic of 18). Total Culpability Score: 2 (Base Score of 5 plus Willfulness of 2 minus Cooperation of 5). Fine range of $4,200,000 - $8,400,000.
:
U.S.
:
Customs Clearance
:
460,000,000
:
Cash, Wire/check
:
Customs Broker or Agent/Consultant, Freight-forwarder
:
2,100,000
:
Nigeria
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Nigeria
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No
:
No