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SEC v. ABB Ltd.

 
:
ABB - ABB Ltd.
:
SEC Civil
:
November 30, 2004
:
SEC v. ABB Ltd.
:
SEC v. ABB Ltd., 1:04-cv-01141 (D.D.C. 2004)
:
While the related DOJ proceedings only concerned Nigeria, the SEC added allegations about activities in Angola and Kazakhstan.

This is the first SEC FCPA case where disgorgement was obtained.

Notably, three UK employees of Vetco Gray's local affiliate were the subjects of a separate SEC proceeding. See Samson, Munro, Campbell, and Whelan.
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Energy (Non-Utility)-Other/Multi
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Angola, Kazakhstan, Nigeria
:
1998; 1999; 2000; 2001; 2002; 2003
:
Officials of the Nigerian, Angolan and Kazakh governments. In Nigeria, the officials were employees of the National Petroleum Investment Management Service (NAPIMS). In Angola, the officials were engineers of the state owned oil company, Sonangol. In Kazakhstan, the payments were made to an official employed in the state oil and gas companies.
:
ABB settled this action with the SEC without admitting or denying the following facts alleged in the SEC's complaint:

ABB's U.S. and foreign-based subsidiaries operating in Nigeria, Angola and Kazakhstan offered and paid bribes totaling approximately $1.1 million to obtain business in the respective country from 1998 through 2003.

From 1998 through 2003, employees of Vetco Gray US and Vetco Gray UK provided cash gifts to officials of NAPIMS to influence NAPIMS' consideration of Vetco Gray Nigera in several bids. At least $719,000 of the illicit payments were made after ABB became a reporting company in the United States.

From 2000 to 2002, employees of Vetco Gray subsidiaries in Angola made corrupt payments to engineers of Sonangol, the Angolan state-owned oil company, by sponsoring three separate training trips to the United States, Brazil, Norway and the United Kingdom, as well as cash spending money of about $120 to $200 per day. The Sonangol engineers who went on these trips were responsible for the technical evaluation of the bids submitted to Sonangol, and these payments were made in order to obtain and retain business.


From 2001 through 2003, Vetco Gray US and ABB's Kazakhstan-based subsidiary made payments to a government official employed in Kazakhstan's state oil and gas companies for the purpose of obtaining and retaining Kazakhstan government business. A total of six payments were made to five separate entities owned by this official under sham contracts for consulting services, under which there was no actual performance of such services.
:
Anti-bribery (Issuer)
:
Civil penalty, Compliance Monitor, Disgorgement, Injunction/Cease and desist
:
Disgorgement of $5,501,157; prejudgment interest of $414,248.64; civil penalty of $10,500,000 which will be deemed paid if ABB pays the equivalent amount of its criminal fines.
:
15,925,905
:
0
:
Issuer
:
Foreign
:
Contract Procurement/Retention
:
Not stated.
:
Cash, Entertainment, Gifts, Meals, Travel, Wire/check
:
Direct, Sales Agent/Consultant
:
1,100,000
:
Angola, Brazil, Nigeria, Norway, United Kingdom, United States
:
United States
:
Yes