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SEC v. Parker Drilling Company, Civil Action

 
:
Parker Drilling - Parker Drilling Company
:
SEC Civil
:
April 17, 2013
:
SEC v. Parker Drilling Company, Civil Action
:
SEC v. Parker Drilling Company, No. 1:13CV461 (E.D. Va., April 16, 2013)
:
Energy (Non-Utility)-Other/Multi
:
Nigeria
:
2004
:
Nigerian Minister of Finance, Nigeria's State Security Service, and a delegation from Nigeria's president's office.
:
Parker Drilling Company is a publicly listed drilling-services company headquartered in Houston. It operates through various subsidiaries throughout the world, and in this case, operated oil-drilling rigs owned by Parker Drilling (Nigeria) Limited, a Nigerian entity and wholly-owned subsidiary of Parker Drilling Offshore International, Inc., a Cayman Islands corporation and wholly-owned Parker Drilling subsidiary.

The investigation of Parker Drilling stemmed from the Justice Department's investigations into the operations of Panalpina World Transport (Nigeria) Limited ("Panalpina Nigeria"). In 2001 and 2002, Panalpina Nigeria had helped Parker Drilling avoid certain costs associated with Nigeria's Customs & Excise Management Act of 1958. In late 2002, Nigeria formed a government commission to examine whether Nigeria's Customs Service had collected certain duties and tariffs that Nigeria was due (the "TI Panel"). In December 2002, the TI Panel commenced proceedings against Parker Drilling. In April 2004, the TI Panel found that Parker Drilling had violated Nigeria's customs laws, and assessed a fine of $3.8 million against the company in May 2004.

During these proceedings, Parker Drilling allegedly retained a Nigerian agent to "act as a consultant," who met with, or planned meetings with, various Nigerian officials. Parker Drilling transferred a total amount of $1.25 million to this Nigerian Agent, who reported spending a portion of the money on various things including entertaining government officials. According to court documents, two senior executives within Parker Drilling at the time reviewed and approved the agent’s invoices, knowing that the invoices arbitrarily attributed portions of the money that Parker Drilling transferred to the agent to various fees and expenses. The funds were mostly funneled through Parker Drilling's law firm and U.S. outside counsel.

The Nigerian agent succeeded in reducing Paker Drilling's fines, and on May 2004, the TI Panel reduced the $3.8 million fine to $750,000.


:
Anti-bribery (Issuer), Books and records (Issuer), Internal controls (Issuer)
:
Civil Settlement
:
Disgorgement of $3,050,000 plus pre-judgment interest of $1,040,818. The proposed settlement is subject to court approval.

In a parallel criminal action proceeding, Parker Drilling entered into a deferred prosecution agreement with the DOJ, under which the company agreed to pay a monetary penalty of $11.76 million.
:
4,090,818
:
0
:
Issuer
:
U.S.
:
United States
:
Other Business Advantage
:
3,050,000
:
Entertainment
:
Customs Broker or Agent/Consultant
:
1,250,000
:
Nigeria
:
Nigeria
:
No
:
No