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U.S. v. JGC Corporation

 
:
JGC Corporation
:
DOJ Criminal
:
April 6, 2011
:
U.S. v. JGC Corporation
:
U.S. v. JGC Corporation, No. 11-00260 (S.D. Tex. 2011)
:
The other companies that partnered with JGC Corporation ("JGC") in the TSKJ joint venture and three related agents and employees were subjected to previous DOJ criminal and SEC civil actions. Collectively, these defendants have paid approximately $1.5 billion in civil and criminal fines for bribery and related violations associated with the Bonny Ireland Project in Nigeria. This case also illustrates the widening jurisdictional scope of the FCPA. JGC is the first Japanese company prosecuted under the FCPA, and is neither a domestic concern nor an issuer. Instead, jurisdiction was based on JGC's role in aiding and abetting a domestic concern, and conspiring to execute the bribery scheme with co-conspirators who are domestic concerns or issuers.
:
Engineering Services
:
Nigeria
:
1994; 1995; 1996; 1997; 1998; 1999; 2000; 2001; 2002; 2003; 2004
:
Officials of Nigeria's executive branch; Officials of the government-owned company responsible for developing and regulating Nigeria's oil and gas industry (Nigerian National Petroleum Company); Officials of government-controlled company formed to develop the Bonny Island Project (Nigeria LNG Limited)
:
JGC, a Japanese company, was part of a four-company joint venture formed in 1990 for bidding on a series of EPC contracts to design and build a liquefied natural gas plant and several expansions on Bonny Island, Nigeria. The JV consisted of Technip S.A., Snamprogetti Netherlands B.V., Kellogg, Brown & Root, Inc., and JGC. The JV was awarded four EPC contracts for the Bonny Island Project between 1995 and 2004.

From August 1994 until June 2004, JGC and its partners in the joint venture authorized, promised, and paid bribes to Nigerian government officials, including officials in the executive branch, employees of the government-owned Nigerian National Petroleum Corporation, and employees of government-controlled Nigeria LNG Limited, to win and retain the Bonny Island EPC contracts. Agents of the JV held "cultural meetings" with Nigerian officials to discuss how to pay bribes. To conceal the bribes, the joint venture entered into sham consulting or services agreements through which bribes were paid to Nigerian officials. JGC, along with its JV partners, conspired to transfer $182 million to consultants, to pass on to Nigerian officials.

JGC also willfully aided and abetted KBR, a domestic concern, to pay $39,800,000 to a "consultant" company, knowing that such money would be used to bribe Nigerian officials.
:
Aiding and abetting anti-bribery, Conspiracy - Anti-Bribery
:
Compliance Monitor, Deferred-prosecution Agreement, Fine
:
Penalty of $218.8 million.
:
218,800,000
:
0
:
Total Culpability Score: 8 (Base Culpability of 5 plus willfullness of 4 minus Cooperation of 1)
Based on USSG s. 8C2.4 and 2C1.1(d)(1)(B), the base fine is 195.4 million. The fine range is between $312.6 and $625.2 million.
:
Aider/abettor
:
Foreign
:
Japan
:
Contract Procurement/Retention
:
6,000,000,000
:
Wire/check
:
Sales Agent/Consultant
:
221,800,000
:
Nigeria, United States
:
Japan, Monaco, Netherlands, Switzerland, United States
:
No
:
No
:
France, Nigeria, Switzerland, United Kingdom, United States