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. Baker Hughes Services International, Inc.

 
:
Baker Hughes - Baker Hughes Services International, Inc.
:
DOJ Criminal
:
April 11, 2007
:
U.S. v. Baker Hughes Services International, Inc.
:
U.S. v. Baker Hughes Services Int'l., Inc., No. 07-CR-00129 (S.D.Tex. 2007)
:
Energy (Non-Utility)-Oil & Gas-Other/Multi
:
Kazakhstan
:
2001; 2002; 2003
:
State oil company (Kazahkoil)
:
In February 2000, Baker Hughes Inc., through its U.S. subsidiary, Baker Hughes Services International ("BHSI"), submitted a bid for a services contract relating to the development of Karachaganak, a large gas and oil field in northwestern Kazakhstan.

In September 2000, the company received unofficial notification that it would win the contract. However, later that month Kazakhoil officials demanded that BHSI retain an unidentified consulting firm and related agent to secure approval of the Karachaganak contract and pay the firm a commission based on BHSI’s revenues from the contract. Shortly thereafter BHSI entered into a contract with the consulting firm, and in October 2003 Baker Hughes was formally notified that it had been awarded the Karachaganak contract.

On an approximately monthly basis from May 2001 to November 2003, Baker Hughes and BHSI made commission payments totaling approximately $4.1 million to the consulting firm as a reward for securing the contract. Employees of BHSI understood that all or part of these commissions would be transferred to officials of Kazahkoil as bribes.
:
Aiding and abetting books and records, Anti-bribery (Issuer)
:
Fine, Plea
:
Fine
:
11,000,000
:
0
:
Total Offense Level: 30 (Base Offense of 10 plus Benefit of 20). Total Culpability Score: 5 (Base Score of 5 plus Willfulness of 3 plus Prior History of 2 minus Cooperation of 5).
:
Domestic Concern
:
U.S.
:
Contract Procurement/Retention
:
189,000,000
:
Wire/check
:
Sales Agent/Consultant
:
4,100,000
:
United Kingdom
:
United Kingdom, United States
:
No