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United States v. CNH France S.A.

 
:
Fiat - CNH France
:
DOJ Criminal
:
December 22, 2008
:
United States v. CNH France S.A.
:
U.S. v. CNH France S.A. (Case No. 1:08-cr-00379-RJL, D.D.C. 2008)
:
Automotive
:
Iraq
:
2001
:
Ministry of Oil of the Republic of Iraq
:
In April 1995, the U.N. adopted Security Council Resolution 986, which permitted the government of Iraq to sell 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"). 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 approximately 10% of the contract value, though in this case sometimes as high as 15%.

CNH France S.A. ("CNH France"), formerly known as Case France, is a wholly-owned subsidiary of CNH Global N.V. ("CNH Global"), an international manufacturer of agricultural and construction equipment. CNH Global is approximately 90% owned by Fiat.

From June 2001 through July 2001, CNH France obtained three contracts worth approximately â‚ �2.2 million with the Ministry of Oil of the Government of Iraq to supply construction vehicles and spare parts. To obtain these contracts, CNH France, through an unnamed Lebanese company acting as distributor, paid approximately $188,000 in kickbacks to the Government of Iraq.

As in the majority of Oil for Food cases, the government did not allege any improper payments to any individual foreign officials.
:
Wire Fraud
:
Subject to Deferred-prosecution Agreement
:
Monetary payment of $7,000,000 to be paid by Fiat S.p.A. on behalf of Italia S.p.A., CNH Italia S.p.A., and CNH France S.A.
:
Not stated.
:
0
:
Issuer
:
Foreign
:
Contract Procurement/Retention
:
2,800,000
:
Wire/check
:
Sales Agent/Consultant
:
188,000
:
No