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SEC v. Triton Energy Corporation, Philip W. Keever, and Richard L. McAdoo

 
:
Triton -- Triton Energy Corporation
:
SEC Civil
:
February 27, 1997
:
SEC v. Triton Energy Corporation, Philip W. Keever, and Richard L. McAdoo
:
SEC v. Triton Energy Corporation, Philip W. Keever, and Richard L. McAdoo, No. 97-CV-00401, (D.D.C. 1997)
:
Although it is unclear after later decisions whether the underlyng conduct would support an anti-bribery charge, the extensive internal controls fails, such as destruction of internal audit memos and failure to follow up on information learned during auditors' and senior executives' visits to local facilities, would appear to support a books and records and internal controls charge under current precedent. In addition, this is an early case involving payments to reduce taxes.
:
Energy (Non-Utility)-Oil & Gas-Exploration/Production
:
Indonesia
:
1989; 1990
:
Indonesian finance ministry and state oil company auditors
:
Triton Indonesia, a wholly owned subsidiary of Triton Energy Corp., whose assets were sold in 1996, entered into a joint venture agreement with Nordell Int'l Resources Ltd. whereby it became operator of an oil and gas recovery project in the Enim oil fields on Sumatra, Indonesia, assuming all operational and financial control over the project. The joint venture's activities in Indonesia were supervised by Pertamina, an Indonesian national oil company, and its books and records were audited by auditors from Pertamina and the Indonesian Ministry of Finance audit branch, BPKP. Because of poor record keeping predating Triton's involvement in the joint venture, Triton had difficulty obtaining certification of unrecovered costs from that period.

In 1988, Triton Indonesia and Nordell retained a business agent to act as an intermediary with Pertamina and the Ministry of Finance. Triton allegedly made a number of improper payments to the business agent for the purpose of influencing Indonesian officials and concealed the purpose of the payments by creating false documents. Triton was also alleged to have failed to maintain an adequate system of internal accounting controls to detect such improper payments by Triton Indonesia to government officials.

Triton Energy consented, without admitting or denying the allegations in the complaint, to a final judgment that permanetly enjoined it from violating the books and records and internal controls provisions of the Exchange Act, in addition to the aforementioned $300,000 penalty.
:
Books and records (Issuer), Internal controls (Issuer)
:
Civil penalty, Injunction/Cease and desist
:
Triton Energy Corp. agreed to pay a penalty of $300,000, the same amount alleged to have been offered as a bribe to Indonesian government officials.
:
300,000
:
0
:
Issuer
:
U.S.
:
Contract Procurement/Retention, Tax
:
Not stated.
:
Cash
:
Customs Broker or Agent/Consultant
:
450,000
:
Indonesia
:
No
:
No