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Helmerich & Payne, Inc.
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DOJ Criminal
:
July 29, 2009
:
Despite the company having admitted to bribery in two countries, the DOJ did not impose a monitor on H&P. Instead, the DOJ required that, during the two year term of the non-prosecution agreement, H&P review and modify its compliance standards and procedures and self-report on its compliance remediation and any credible evidence of FCPA anti-bribery violations it might discover.
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Energy (Non-Utility)-Oil & Gas-Exploration/Production
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Argentina, Venezuela
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2003; 2004; 2005; 2006; 2007; 2008
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Customs officials in Argentina and Venezuela
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From 2003 to 2008, H&P's Argentine subsidiary, Helmerich & Payne (Argentina) Drilling Company ("H&P Argentina") and its Venezuelan subsidiary, Helmerich & Payne de Venezuela, C.A. ("H&P Venezuela") made approximately $173,000 in improper payments through their customs brokers to customs officials in Argentina and Venezuela to allow and expedite the importation and exportation of equipment and materials at lower duty rates, or that were not in compliance with the regulations of those countries, and to avoid full inspections.

In addition, the subsidiaries made approximately $10,000 in facilitation payments to Argentine and Venezuelan customs officials for the performance of routine government action. Both the facilitation payments and the corrupt payments were improperly recorded on the subsidiaries' books and records, which caused false entries on H&P's books and records on a consolidated basis.

Between 2004 and 2008, H&P Argentina paid Argentine customs officials indirectly through their customs brokers approximately $166,000, which enabled H&P Argentina to avoid approximately $186,000 in expenses it would have incurred had it properly imported and exported the equipment and materials. The majority of these payments were less than $5,000 each and were made on an infrequent basis. The customs brokers disguised those corrupt payments on their invoices to H&P Argentina as ""extra costs" or "extraordinary expenses."

Between 2003 and 2008, H&P Venezuela paid Venezuelan customs officials indirectly through their customs brokers approximately $7,000, which enabled H&P Venezuela to avoid approximately $18,000 in expenses it would have incurred had it properly imported and exported the equipment and materials. The customs brokers disguised those corrupt payments on their invoices to H&P Venezuela as "urgent processing," "urgent dispatch," "customs processing or "customs facilitation."

The DOJ entered into the NPA based, in part, on H&P's discovery of the reported conduct through its internal control processes, its self-reporting, its cooperation with the SEC and the DOJ, and the extensive remedial measures taken and to be taken by H&P.

In separate SEC proceedings, H&P was also ordered to pay $375,000 in disgorgement to the SEC.
:
Anti-bribery (Issuer), Books and records (Issuer), Internal controls (Issuer)
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Fine, Non-prosecution Agreement
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Penalty
:
1,000,000
:
0
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Domestic Concern, Issuer
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U.S.
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Customs Clearance
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320,000
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Wire/check
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Customs Broker or Agent/Consultant, Direct
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185,333
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Argentina, Venezuela
:
H&P made approximately $10,000 in facilitation payments to Argentine and Venezuelan customs officials for the performance of routine government action which were improperly recorded giving rise to further books and records violations.
:
No