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U.S. v. Jeffrey Tesler and Wojciech J. Chodan

 
:
Halliburton and KBR, Inc. - Chodan, Wojciech J.
:
DOJ Criminal
:
February 17, 2009
:
U.S. v. Jeffrey Tesler and Wojciech J. Chodan
:
U.S. v. Tesler and Chodan, No. 09-098 (S.D. Tex. 2009)
:
This is one of the few known cases in which the U.S. has requested extradition of a foreign national who acted as an agent for a U.S. company. Chodan was extradicted from the U.K. at the end of 2010 after relinquishing his legal battle opposing the extradition.

In the indictment, the DOJ asserted jurisdiction based in part on the use of correspondent accounts in the United States to make bribe payments.
:
Energy (Non-Utility)-Oil & Gas-Exploration/Production
:
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)
:
The M.W. Kellogg Company and its successor company, Kellogg, Brown & Root Inc. (jointly "KBR") were part of a four-company joint venture, the so-called TSKJ joint venture, which sought to obtain engineering, procurement, and construction ("EPC") contracts for liquefied natural gas facilities on Bonny Island, Nigeria. From 1988 to 1998, Wojciech Chodan, a U.K. citizen, was a sales vice president for M.W. Kellogg Ltd., which was 55% owned by KBR. Beginning in 1999, M.W. Kellogg Ltd. hired him as a consultant reporting to Albert Stanley, the former CEO of KBR.

According to Chodan's guilty plea, although he knew it was unlawful he believed that it was necessary to pay bribes to Nigerian government officials to obtain the Bonny Island EPC contracts. Chodan recommended and agreed to hire Jeffrey Tesler as well as a Japanese company, expecting that these intermediaries would pay bribes on behalf of the TSKJ joint venture. Chodan admitted in his plea agreement to participating in meetings with Nigerian officials in which he negotiated $55.5 million in bribe payments; he also acknowledged that Tesler and others negotiated and authorized an additional $111 million in bribe payments.

In February 2009, the DOJ filed an eleven-count indictment under seal against Chodan and Tesler, which was unsealed in March 2009. The indictment charged Chodan with one count of conspiring to violate the anti-bribery provisions of the FCPA and nine counts of violating the anti-bribery provisions of the FCPA. The indictment also contained forfeiture allegations seeking $132 million from Chodan and Tesler.

On December 6, 2010, Chodan agreed to plead guilty to the conspiracy charge. He has agreed to forfeit $726,885. On February 22, 2012, Chodan was sentenced to one year of unsupervised probation and was ordered to pay a $20,000 fine.
:
Conspiracy - Anti-Bribery
:
Plea, Probation
:
746,885
:
0
:
Agent of Domestic Concern
:
Senior Sales
:
Foreign
:
United Kingdom
:
Contract Procurement/Retention
:
6,000,000,000
:
Cash, Wire/check
:
Sales Agent/Consultant
:
166,500,000
:
Japan, Monaco, Nigeria, Switzerland
:
Japan, Monaco, Netherlands, Switzerland, United States
:
"Mails or means or instrumentality of interstate commerce": The indictment cites an email that Mr. Chodan caused to be transmitted to or through Houston as the basis for an anti-bribery charge. In addition, eight of the charges are based solely on correspondent account jurisdiction allegations.
:
No
:
No
:
France, Nigeria, Switzerland, United Kingdom