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U.S. v. Ingersoll-Rand Company Limited

 
:
Ingersoll-Rand - Ingersoll-Rand Company Limited
:
DOJ Criminal
:
October 31, 2007
:
U.S. v. Ingersoll-Rand Company Limited
:
1:07-cr-00294-RJL
:
Although one criminal Information charges travel and cash payments to individual officials, there is no anti-bribery allegation, apparently because the payments were made without any jurisdictional U.S. nexus by a foreign subsidairy.
:
Manufacturing-Other/Multi
:
Iraq
:
2000; 2001; 2002; 2003
:
Iraqi government; officials of the Iraqi government.
:
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.

Employees and agents of Ingersoll-Rand's subsidiary, Ingersoll-Rand Italiana S.p.A., from October 2000 to August 2003, paid kickbacks to the Iraqi government and gave cash for travel, entertainment and "pocket money" to Iraqi government officials in order to obtain contracts with Iraqi ministries to provide road construction equipment, air compressors and parts, and refrigerated trucks.

Ingersoll-Rand entered into a 3-year deferred-prosecution agreement with the DOJ on October 31, 2007 on behalf of itself and its subsidiaries in which it agreed to pay a monetary penalty, accept responsibility for the conduct, and adopt an FCPA compliance program.
:
Conspiracy - Books & Records
:
Conspiracy - Wire Fraud
:
Deferred-prosecution Agreement
:
2,500,000
:
0
:
Issuer
:
Foreign
:
Contract Procurement/Retention
:
2,270,000
:
Cash, Entertainment, Meals, Travel, Wire/check
:
Customs Broker or Agent/Consultant
:
850,000
:
Iraq
:
No