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U.S. v. Paradigm B.V.

 
:
Paradigm B.V.
:
DOJ Criminal
:
September 21, 2007
:
U.S. v. Paradigm B.V.
:
During due diligence conducted by Paradigm in connection with its anticipated initial public offering in 2007, Paradigm identified conduct that appeared to violate the FCPA. In response, Paradigm conducted an investigation through outside counsel. The DOJ permitted the company to retain the same outside counsel as the company's "compliance consultant" to monitor implementation and effectiveness of compliance code. In contrast to other non-prosecution agreements, the provisions setting forth the duties of the monitor are minimal.
:
Computer & Information Technologies-Software
:
China, Indonesia, Kazakhstan, Mexico, Nigeria
:
2002; 2003; 2004; 2005; 2006; 2007
:
KazMunaiGas official; employees of Chinese national oil companies; Nigerian politicians; official of Pemex, the Mexican national oil company; officials of Pertamina, the Indonesian national oil company.
:
Paradigm made various payments from 2002 to 2007 to officials in Kazakhstan, China, Mexico, Nigeria, and Indonesia to secure tender for their geological software and to influence the officials' employers to purchase Paradigm's software products.

In Kazakhstan in 2005, Paradigm retained, at the recommendation of a KazMunaiGas official, a British West Indian company to assist with its tender offer on a $249,290 project. After winning the project, Paradigm wired a $22,250 "commission" to the consultant's Latvian bank account. In China in 2006, Paradigm China used an agent to make undetermined commission payments to representatives of a subsidiary of the China National Offshore Oil Company (CNOOC), retained "internal consultants" who were employees of state-owned oil companies, and paid undetermined travel and entertainment expenses for those consultants and other employees of state-owned oil companies. In Mexico in 2004 to 2005, Paradigm Mexico paid commissions (totaling less than $206,698) to an agent with whom the company had no written contract in connection with a $1.48 million subcontract with the Mexican Bureau of Geophysical Contracting (BGP) on a Pemex project, and spent approximately $22,000 in travel and entertainment expenses for a Pemex official. In Nigeria in 2003 to 2005, Paradigm Geophysical Nigeria Ltd. made payments between $100,000 and $200,000 through a Nigerian agent to Nigerian politicians in order to obtain a contract, which it did not receive. In Indonesia in 2003, PT Paradigm Geophysical Indonesia made payments through its Indonesian agent to officials at Indonesian's state-owned oil company in order to obtain/retain business.
:
Anti-bribery (Domestic Concern)
:
Compliance Monitor, Fine, Non-prosecution Agreement
:
$1 million penalty.
:
1,000,000
:
0
:
Domestic Concern
:
U.S.
:
Contract Procurement/Retention
:
249,290
:
Entertainment, Gifts, Meals, Travel, Wire/check
:
Customs Broker or Agent/Consultant
:
22,250
:
United Kingdom
:
Latvia
:
No