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U.S. v. ABB Ltd. – Jordan

 
:
ABB – ABB Ltd. – Jordan
:
DOJ Criminal
:
November 18, 2010
:
U.S. v. ABB Ltd. – Jordan
:
U.S. v. ABB Ltd. – Jordan, No. 4:10-cr-00665 (S.D. Tex. 2010).
:
Iraq
:
2000; 2001; 2002; 2003; 2004
:
Regional companies of the Iraqi Electricity Commission (General Company for Electricity Energy Production; the Baghdad Mayoralty; and State Company Baghdad Electricity Distribution).
:
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 from humanitarian goods suppliers. The kickback payments were masked by inflating the contract price, usually by 10% of the contract value. ABB Ltd.— Jordan paid more than $300,000 in kickbacks to the former Iraqi government in exchange for eleven purchase orders for electrical equipment and services worth more than $5.9 million under the U.N. Oil-for-Food Program. Additionally, ABB Ltd.— Jordan engaged in systematic efforts to conceal the illegal payments and circumvent internal controls by misrepresenting these payments as “consulting fees” in its books and records.
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Books and records (Issuer)
:
Conspiracy - Wire Fraud
:
Deferred-prosecution Agreement
:
According to a deferred prosecution agreement with ABB Ltd., ABB - Jordon's parent company, ABB Ltd. agreed to pay criminal penalties totaling $1,920,000 on behalf of ABB Ltd. – Jordan.
:
Not stated.
:
0
:
Total Offense Level: 23 (Base Offense of 7 + Specific Offense Characteristics of 16). Total Culpability Score: 6 (Base Score of 5 + Individual Participation of 1 + Prior History of 2 - Cooperation of 2).
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Issuer
:
Foreign
:
Contract Procurement/Retention
:
5,900,000
:
Wire/check
:
Sales Agent/Consultant
:
300,000
:
Iraq
:
:
No