Jump to content Jump to menu
Why Register?

Shearman FCPA Website: Cases Logo Shearman & Sterling LLP FCPA.Shearman.com: The One-Stop Resource on the Foreign Corrupt Practices Act

U.S. v. Vetco Gray Controls Limited

 
:
Vetco Gray Controls Limited
:
DOJ Criminal
:
January 5, 2007
:
U.S. v. Vetco Gray Controls Limited
:
U.S. v. Vetco Gray Controls Limited, 4:07-cr-00004 (S.D. Tex. 2007)
:
The Vetco companies were initially prosecuted in 2004 before being spun-off from ABB. Despite having agreed to implement rigorous compliance procedures in exchange for an assurance from the DOJ that the spun-off company would not be held liable for historical violations, in FCPA Opinion Release 04-02, the DOJ found that the spun-off company continued to violate the FCPA and brought a second criminal prosecution. Shortly after the resolution of this matter, the bulk of the business was acquired by GE.
:
Energy (Non-Utility)-Other/Multi
:
Nigeria
:
2002; 2003; 2004; 2005
:
Officials of the Nigerian Customs Service.
:
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 permit Vetco Gray UK and Vetco Gray Controls to bypass 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 (Other Persons)
:
Compliance Monitor, Fine, Plea
:
3 years of probation.
:
8,000,000
:
0
:
Total Offense Level: 3- (Base Offense of 12 plus Specific Offense of 2 plus Specific Offense of 12). Total Culpability Score: 3 (Base Score of 5 plus Size of Organization 3 minus Cooperation 5).
:
Foreign
:
Customs Clearance
:
Not stated.
:
Cash, Wire/check
:
Customs Broker or Agent/Consultant, Freight-forwarder
:
21,000,000
:
Nigeria
:
Yes