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U.S. v. Marubeni Corporation

 
:
Marubeni Corporation
:
DOJ Criminal
:
January 17, 2012
:
U.S. v. Marubeni Corporation
:
U.S. v. Marubeni Corporation, No. 4:12-cr-00022 (S.D. Tex. 2012)
:
The other companies that partnered in the TSKJ joint venture and three related agents and employees were the subjects of previous DOJ criminal and SEC civil actions. Collectively, these defendants have paid approximately $1.7 billion in civil and criminal fines for bribery and related violations associated with the Bonny Island Project in Nigeria.
:
Engineering Services
:
Nigeria
:
1994; 1995; 1996; 1997; 1998; 1999; 2000; 2001; 2002; 2003; 2004
:
Officials of Nigeria's executive branch; Officials of the government-owned company responsible for developing and regulating Nigeria's oil and gas industry (Nigerian National Petroleum Company); Officials of government-controlled company formed to develop the Bonny Island Project (Nigeria LNG Limited).
:
Marubeni Corporation, a major Japanese trading company, was an agent of a four-company joint venture (“TSKJ”) formed in 1990 for bidding on a series of engineering, procurement, and construction (“EPC”) contracts to design and build a liquefied natural gas plant and several expansions on Bonny Island, Nigeria. The JV consisted of Technip S.A., Snamprogetti Netherlands B.V., Kellogg, Brown & Root, Inc., and JGC Corporation. Between 1995 and 2004, the JV was awarded four EPC contracts, worth over $6 billion, by Nigeria LNG Ltd. (“NLNG”), for the Bonny Island Project. The government-owned Nigerian National Petroleum Corporation was the largest shareholder of NLNG, owning 49% of the company.

The TSKJ joint venture hired Marubeni and a second agent – Jeffrey Tesler, a U.K. solicitor – as consultants, expecting that Marubeni and Tesler would pay bribes to a wide range of Nigerian government officials to win and retain the Bonny Island EPC contracts. Marubeni was hired to pay bribes to lower-level Nigerian officials, while Tesler was hired to pay bribes to high-level officials. Employees of Marubeni and their co-conspirators held "cultural meetings" in which they discussed the use of particular agents, including Tesler and Marubeni, to make payments to officials of the Nigerian government. On two occasions, an employee of Marubeni met with successive holders of a top-level office to ask the office holder to designate a representative with whom TSKJ should negotiate bribes to Nigerian government officials.

TSJK transferred $51 million to Marubeni’s bank account in Japan during the course of the bribery scheme, intending these funds to be used, in part, to bribe Nigerian officials. Marubeni’s alleged co-conspirators transferred another $132 million to bank accounts controlled by Tesler for Tesler to use to bribe Nigerian government officials.
:
Aiding and abetting anti-bribery, Conspiracy - Anti-Bribery
:
Compliance Monitor, Deferred-prosecution Agreement, Fine
:
Criminal penalty of $54.6 million.
:
54,600,000
:
0
:
Total Culpability Score: 6 (Base Culpability of 5 plus High Level Personnel of 2 minus Acceptance of Responsibility of 1)

Based on USSG s. 8C2.4(d) and 2C1.1(a), 2C1.1(b)(1), and 2C1.1(b)(2), the base fine is $45.5 million. The fine range is between $54.6 million and $109.2 million.
:
Agent of Domestic Concern, Agent of Issuer
:
Agent/Intermediary
:
Foreign
:
Japan
:
Contract Procurement/Retention
:
6,000,000,000
:
Wire/check
:
Sales Agent/Consultant
:
51,000,000
:
Nigeria
:
Japan, Monaco, Netherlands, Switzerland, United States
:
No
:
No
:
France, Italy, Switzerland, United Kingdom