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S.E.C. v. David P. Turner and Ousama M. Naaman

 
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Innospec - Turner, David P.
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SEC Civil
:
August 5, 2010
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S.E.C. v. David P. Turner and Ousama M. Naaman
:
S.E.C. v. David P. Turner and Ousama M. Naaman, No. 1:10-cv-01309 (D.D.C. 2010)
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In January 2012, Turner pled guilty to allegations brought by the U.K.'s Fraud Office that Turner conspired to give corrupt payments to public officials and other agents of the government of Indonesia from 2002 to 2008, and the government of Iraq from 2003 to 2008.
:
Chemicals
:
Indonesia, Iraq
:
2001; 2002; 2003; 2004; 2005; 2006; 2007; 2008
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Iraqi government officials (Ministry of Oil) and Indonesian government officials (Ministry of Energy and Mineral Resources) and officials of state-owned oil and gas companies in Indonesia (BP Migas and Pertamina).
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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 10% of the contract value.
 
Acording to the SEC, David Turner -- a former Business Director for Innospec Inc. (“Innospec”), a manufacturer of fuel additives and other specialty chemicals -- was responsible for authorizing agreements with the Iraqi Ministry of Oil, as well as agreements to sell gasoline additives to various state-owned oil companies in Indonesia.
 
He worked with Ousama Naaman, an agent in Iraq for Innospec, to allegedly pay bribes to government officials in order to sell TEL, a fuel additive, to government-owned refineries and oil companies in Iraq.  Thr bribery scheme allegedly began with Innospec’s participation in the United Nations Oil for Food program in 2001, and lasted until at least 2008.
According to the Complaint, Turner made false statements to auditors regarding the nature of commission payments made to Naaman under the U.N. Oil for Food program, and concealed the fact that those payments included kickbacks to the Iraqi government in exchange for contracts.  It was alleged that Turner continued to pay bribes to Iraqi officials, including payments to fund lavish trips for Iraqi officials. 
 
Turner also allegedly authorized and directed the payment of bribes to Indonesian government officials to win contracts for Innospec. 
:
Aiding and abetting anti-bribery, Aiding and abetting books and records, Aiding and abetting internal controls, Books and records (Individual), Internal Controls (Individual)
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Disgorgement, Injunction/Cease and desist
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Disgorgement; no civil penalty imposed because of defendant's cooperation.
:
40,000
:
0
:
Aider/abettor, Employee of Issuer
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Senior Sales
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U.S.
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Contract Procurement/Retention
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176,717,341
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Cash, Wire/check
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Direct, Sales Agent/Consultant
:
6,347,588
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Indonesia, Iraq
:
:
No
:
United Kingdom