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U.S. and S.E.C. v. KPMG Siddharta Siddharta & Harsono, and Sonny Harsono

 
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Baker Hughes - KPMG-SSH
:
September 11, 2001
:
U.S. and S.E.C. v. KPMG Siddharta Siddharta & Harsono, and Sonny Harsono
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U.S. and S.E.C. v. KPMG Siddharta Siddharta & Harsono, and Sonny Harsono, Civ. No. 4:01-cv-03105 (S.D. Tex. 2001)
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This case is the first joint civil injunctive action instituted by the D.O.J. and S.E.C.
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Energy (Non-Utility)-Oil & Gas-Other/Multi
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Indonesia
:
1999
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Indonesian tax official representing the Directorate General.
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In March 1999, Sonny Harsono, a partner of KPMG Siddharta Siddharta & Harsono ("KPMG-SSH"), allegedly authorized KPMG-SSH personnel to bribe an Indonesian tax official on behalf of PT Eastman Christensen ("PTEC"), an Indonesian company beneficially owned by Baker Hughes Incorporated ("Baker Hughes"). KPMG-SSH allegedly agreed to make the illicit payment for the purpose of influencing an Indonesian tax official to reduce a tax assessment for PTEC from $3.2 million to $270,000.To conceal the allegedly improper payment, Harsono allegedly authorized KPMG-SSH to generate an invoice that included $75,000 for payment to the Indonesian tax official and $68,000 for KMPG-SSH's fees for services rendered and applicable taxes.After receiving the invoice, PTEC allegedly paid KPMG-SSH $143,000 and improperly recorded the transaction as payment for professional services rendered. On March 23, 1999, PTEC received a tax assessment of approximately $270,000 from the Indonesian government, almost $3 million lower than the original assessment.After Baker Hughes's General Counsel and FCPA Advisor discovered the subject payment, Baker Hughes: (a) attempted to stop the payment to KPMG-SSH; (b) voluntarily and promptly disclosed the alleged misconduct to the S.E.C. and D.O.J.; and (c) instructed KPMG-SSH not to make the payment to the Indonesian tax official and to return the entire amount paid to KPMG-SSH.Without admitting or denying the allegations, KPMG consented to the entry of a Final Judgment that permanently enjoins it from violating and aiding and abetting the violation of the anti-bribery provisions of the FCPA and the internal controls and books and records provisions of the Exchange Act.
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Aiding and abetting anti-bribery, Aiding and abetting books and records, Aiding and abetting internal controls, Anti-bribery (Other Persons)
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Injunction/Cease and desist
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Defendant consented to the entry of a Final Judgment that permanently enjoined it from violating and aiding and abetting the violation of the anti-bribery provisions of the FCPA and the internal controls and books and records provisions of the Exchange Act.
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Not stated.
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0
:
Agent of Issuer, Other Person
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U.S.
:
Tax
:
2,930,000
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Wire/check
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Direct
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75,000
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Indonesia
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No