Oil and gas services company TechnipFMC, which has co-headquarters in Houston and London, announced Tuesday that it has reached a settlement with the U.S. Securities and Exchange Commission and the U.S. Department of Justice to resolve decade-old allegations that company officials violated the Foreign Corrupt Practices Act in business dealings in Brazil and Iraq.
The DOJ filed documents Tuesday in the U.S. District Court in the Eastern District of New York (Brooklyn) with the details of a three-year Deferred Prosecution Agreement (DPA) related to charges of conspiracy to violate the FCPA related to conduct in Brazil and with Unaoil.
TechnipFMC Chief Legal Officer Dianne Ralston signed the 59-page agreement Tuesday. Lawyers for Paul Hastings in Washington, D.C. represented TechnipFMC.
Under the terms of the agreement, TechnipFMC will pay $89 million in criminal penalties to the DOJ and $214 million in penalties to officials in Brazil.
In addition, U.S. subsidiary Technic USA pleaded guilty to one count of conspiracy under the FCPA’s anti-bribery provisions and one of the company’s former consultants in Brazil also pleaded guilty.
In a publc statement released late Wednesday, TechnipFMC said that it has “fully cooperated with these authorities, and this is the first simultaneous resolution to include all U.S. and Brazilian authorities.”
Under the agreement, TechnipFMC will not be required to have a monitor, but it will provide reports on its anti-corruption program to the Brazilian and U.S. authorities for two and three years, respectively.
“This conduct dating back over a decade ago, taken by former employees, does not reflect the core values of our company today,” TechnipFMC CEO Doug Pferdehirt said in a written statement. “We are committed to doing business the right way, and that means operating with integrity everywhere.
“Our strong compliance program supports this commitment, and we will continue to enhance our program to ensure that our employees have the practical tools and resources to do business the right way,” Pferdehirt stated.
The agreement requires separate approval by SEC commissioners.
Additionally, TechnipFMC has reached an agreement in principle with the SEC Staff, subject to final SEC approval.
For additional details, Richard Cassin of FCPA Blog has the most detailed coverage.