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Enforcement Action Dataset

 

Initiation Date:    11/04/2010  Information

Prosecuting Agency:    U.S. Department of Justice

Type of Action:    DOJ Criminal Proceeding

Docket or Case Number:    N/A

Court:    N/A

Name of Prosecuting Attorneys:   

  • Stacey K. Luck, Trial Attorney, Fraud Section, Criminal Division
  • Denis J. McInerney, Chief, Fraud Section, Criminal Division

US Assisting Agencies:   

  • U.S. Securities and Exchange Commission
  • Federal Bureau of Investigation

Foreign Enforcement Action/Investigation:    Unknown

Foreign Assistance:    Unknown

Origin of the Proceeding:    Voluntary disclosure

Whistleblower:    Unknown

Case Status:    Resolved


Summary  Information

Noble Corporation ("Noble") is a leading offshore drilling contractor for the oil and gas industry. In 1996, Noble moved from the NASDAQ to the NYSE and began trading under the symbol NE. Noble performs, through its subsidiaries, contract drilling services with a fleet of 69 offshore drilling units worldwide.

Under Nigerian law, customs duties generally were required to be paid for goods imported into Nigeria, such as rigs and vessels imported into Nigerian waters. In order to avoid these fees, companies could import rigs and other items on a temporary basis pursuant to which no customs duties would be assessed. Items imported under the temporary import process (TIP) could not remain in Nigeria longer than the period allowed for by the TIP and/or TIP extensions. Upon the expiration of the TIP (and related TIP extensions), the owner could either choose to permanently import the rig (known as "nationalizing") or export the rig and re-import it and obtain a new initial TIP. Throughout Noble's operations in Nigeria, Noble's Nigerian subsidiary ("Noble-Nigeria") chose to temporarily import rigs into Nigeria. Noble-Nigeria employed a Nigerian customs agent to apply for and secure its TIPs and TIP extensions.

Between January 2003 and May 2007, Noble-Nigeria paid the customs agent at least $74,000 in "special handling charges". Executives at Noble and Noble-Nigeria knew that some or all of the payments would be given to officials at the Nigeria Customs Service (NCS) in order to avoid the time, cost, and risks associated with exporting rigs and re-importing them into Nigerian waters after the period allowed for by the TIP had expired. The agent invoiced Noble-Nigera for the cost of the bribes, and Noble-Nigeria then reimbursed the agent. The total benefit received by Noble-Nigeria for these payments in avoided costs, duties, and penalties was approximately $2,973,000.

On Novemeber 4, 2010, Noble Corp. entered into a non-prosecution agreement with the DOJ pursuant to which the DOJ agreed not to bring charges against the company. Under the non-prosecution agreement, Noble corp. agreed to pay a $2,590,000 monetary penalty.

In a separate but related action with the SEC, Noble Corp. consented to the entry of a final judgment permanently enjoining it from violating the anti-bribery, books and records, and internal controls provisions of the FCPA without admitting or denying the SEC's allegations. In that action, Noble Corp. was ordered to disgorge $4,294,933, and pay prejudgment interest of $1,282,065.

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