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S.E.C. v. Baker Hughes Incorporated and Roy Fearnley

 
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Baker Hughes - Roy Fearnley
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SEC Civil
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April 26, 2007
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S.E.C. v. Baker Hughes Incorporated and Roy Fearnley
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S.E.C. v. Baker Hughes Inc. and Roy Fearnley, No. 07-cv-1408 (S.D. Tex. 2007)
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This case is an example of the expansive jurisdictional reach of the FCPA, as Roy Fearnley is a British national residing in Kazakhstan.
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Kazakhstan
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1998; 1999; 2000; 2001; 2002
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Officials of Kazakh state-owned oil and oil transport companies (Kazakhoil and KazMunaiGas)
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Baker Hughes allegedly made payments to agents in Kazakhstan to secure a major services contract relating to the development of Karachaganak, a large gas and oil field in northwestern Kazakhstan. Although Baker Hughes was unofficially notified that it would win the contract, Kazakhoil representatives insisted prior to official notification that Baker Hughes retain an Isle of Man-based consultant and agree to pay it a percentage commission of the revenues from the Karachaganak contract. Baker Hughes and its subsidiaries complied, making payments totaling approximately $4.1 million to the consultant from May 2001 to November 2003.

Roy Fearnley was employed by Baker Hughes as Business Development Manager in Kazakhstan and later in Russia. Fearnley was allegedly instrumental in engaging the agent involved in securing the contract. Fearnley was allegedly also involved in making a payment to a company owned by an official of KazMunaiGas in connection with a land lease for another oil services project in Kazakhstan. While Baker Hughes has resolved the charges against it, Fearnley never appeared to answer the complaint. Default judgment of $12,635.51 was granted against him on January 26, 2010.
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Aiding and abetting anti-bribery, Aiding and abetting books and records, Internal Controls (Individual)
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Disgorgement, Prejudgment Interest
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Not stated.
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0
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Officer of Issuer
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Senior Sales
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Foreign
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Contract Procurement/Retention
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223,000,000
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Wire/check
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Sales Agent/Consultant
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5,200,000
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United Kingdom
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United Kingdom, United States
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No