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In the Matter of Layne Christensen Company

 
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Layne Christensen Company
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SEC Civil
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October 27, 2014
:
In the Matter of Layne Christensen Company
:
In the Matter of Layne Christensen Company, Administrative Proceeding File No. 3-16216 (2014)
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In an SEC-only enforcement action, the Texas water treatment, construction, and drilling company was charged with violating the anti-bribery provisions of the FCPA without facts that detail how the bribes were used to obtain or retain business. The SEC seemingly deficient allegations run counter to the Fifth Circuit's decision in United States v. Kay.
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Pollution Control/Waste
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Burkina Faso, Guinea, Mali, Mauritania, Tanzania
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2005; 2006; 2007; 2008; 2009; 2010.
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Malian tax officials; Guinean tax officials; tax officials in the Democratic Republic of the Congo; custom officials in Burkina Faso and the Democratic Republic of the Congo; police, border patrol, immigration officials, and labor inspectors in Burkina Faso, Guinea, Tanzania, and the Democratic Republic of the Congo.
:
Between 2005 and 2010, Layne Christensen Company (“Layne Christensen”), through its wholly-owned subsidiaries in African and Australia, allegedly paid $768,000 to foreign officials in the Republic of Mali, the Republic of Guinea, and the Democratic Republic of the Congo. According to the SEC, Layne Christensen made these payments to reduce its tax liability and to avoid associated penalties for delinquent payment.

Layne also allegedly made improper payments to customs officials in Burkina Faso and the Democratic Republic of Congo between 2007 and 2010 to avoid customs duties and to obtain clearance to import and export its drilling equipment. The improper payments were falsely recorded as legal fees and commissions in the company’s books and records.

Finally, between 2007 and 2010, the SEC accused Layne Christensen of paying more than $23,000 in cash to police, border patrol, immigration officials, and labor inspectors in Burkina Faso, Guinea, Tanzania, and the Democratic Republic of Congo to obtain border entry for its equipment and employees, secure work permits for its expatriate employees, and to avoid penalties for noncompliance with local immigration and labor regulations.
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Anti-bribery (Issuer), Books and records (Issuer), Internal controls (Issuer)
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Cease and Desist
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Civil penalty of $375,000; disgorgement of $3,893,472.42 plus pre-judgment interest of $858,720.68.
:
5,127,193
:
0
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Issuer
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U.S.
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United States
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Customs Clearance, Tax
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3,900,000
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Cash, Wire/check
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Customs Broker or Agent/Consultant, Subsidiary Company
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1,503,186
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Burkina Faso, Guinea, Mali, Mauritania, Tanzania
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United States
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No
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Yes