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Securities and Exchange Commission v. Ingersoll-Rand Company Limited

 
:
Ingersoll-Rand - Ingersoll-Rand Company Limited
:
SEC Civil
:
October 31, 2007
:
Securities and Exchange Commission v. Ingersoll-Rand Company Limited
:
U.S. Securities and Exchange Commission v. Ingersoll-Rand Company Limited, 1:07cv-01955-JDB
:
Manufacturing-Other/Multi
:
Iraq
:
200; 2001; 2002; 2003
:
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.

Ingersoll-Rand Co. Ltd. settled this action with the SEC without admitting or denying the following facts alleged in the SEC's complaint.

From 2000 through 2003, subsidiaries of Ingersoll-Rand allegedly entered into contracts to pay kickbacks to Iraqi government officials in connection with sales to the Iraqi government under the United Nations Oil for Food Program. The subsidiaries allegedly made some of these payments directly in the form of after sales services fees. Other kickbacks were allegedly made through third parties or intermediaries.

Ingersoll-Rand consented to the entry of a final judgment on October 31, 2007 in which it agreed to disgorge profits, pay a civil penalty, and retain a compliance monitor.
:
Books and records (Issuer), Internal controls (Issuer)
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Civil penalty, Compliance Monitor, Disgorgement, Injunction/Cease and desist
:
Total Sanction includes $1,710,034 in disgorgement, $560,953 in prejudgment interest and a civil penalty of $1,950,000.
:
4,220,987
:
0
:
Issuer
:
Foreign
:
Contract Procurement/Retention
:
2,270,000
:
Cash, Entertainment, Meals, Wire/check
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Direct, Sales Agent/Consultant
:
1,507,845
:
Iraq
:
No