Defendant Pride Forasol S.A.S. was a wholly-owned subsidiary of Pride International. Pride International ("Pride"), was a Houston-based corporation, which owned and operated numerous oil and gas drilling rigs throughout the world. Pride Foramer India ("Pride India") was a branch of Pride Forasol's wholly-owned subsidiary, Pride Foramer, operating in India.
From January 2003 to July 2003, the Director of Legal Affairs for Pride Forasol, the Base Manager for Pride India, the Area Manager for the Asia Pacific region (which included Pride India), an Indian customs consultant, and others agreed to pay $500,000 to a judge with India's Customs, Excise, and Gold Appellate Tribunal ("CEGAT") to secure a favorable judicial decision for Pride India relating to a litigation matter pending before the official involving the payment of customs duties and penalties assessed for a rig.
On November 4, 2010, the DOJ filed a criminal Information against Pride Forasol in the Southern District of Texas, charging Pride Forasol with conspiracy to violate the anti-bribery provisions of the FCPA, violating the anti-bribery provisions of the FCPA, and aiding and abetting the violation of the books and records provisions of the FCPA. At the same time Pride Forasol entered into a plea agreement with the DOJ and agreed to pay a penalty of $32,625,000. The $32,625,000 fine is approximately 55% below the bottom of the applicable Sentencing Guidelines fine range of $72,500,000. The Department and Pride Forasol agreed that such a reduction was appropriate based on the company's voluntary disclosure of the improper conduct, cooperation in the investigation, and expansive remedial measures.
In a related action, the DOJ entered into a three year deferred prosecution agreement with Pride International. Pride International agreed to pay a fine of $32,625,000. Under the terms of the DPA, any criminal penalty that is imposed by the Court and paid by Pride Forasol in connection with its guilty plea and plea agreement will be deducted from the $32,625,000 fine imposed on Pride International.
On May 31, 2011, Ensco plc (“Ensco”) acquired Pride in a merger and assumed the obligations of Pride under the DPA. Since the merger, the business operations of both Pride and Pride Forasol were integrated into those of Ensco. On November 2, 2012, the DOJ filed a motion to dismiss the DPA that had been filed against Pride, and a motion to terminate the probation of Pride Forasol. The government determined that the continuation of the DPA and the term of probation would serve no further purpose in light of Ensco's implementation and oversight of compliance with policies, procedures and internal controls regarding the FCPA and other applicable anti-corruption laws across the entire Ensco organization.
