Enforcement Action

 

Docket or Case Number:    10-cr-00460

Court:    S.D. Texas

Initiation Date:    07/07/2010  Information

Prosecuting Agency:    US Department of Justice

Name of Prosecuting Attorneys:   

  • William J. Stuckwisch, Assistant Chief, Fraud Section, Criminal Division
  • Patrick F. Stokes, Senior Trial Attorney, Fraud Section, Criminal Division
  • Denis J. McInerney, Chief, Fraud Section, Criminal Division

Assisting Agencies:    U.S. Securities and Exchange Commission , French Law Enforcement Agency , Switzerland's Law Enforcement Agency , U.K. Law Enforcement Agency , Federal Bureau of Investigation , Department of Justice- Criminal Division’s Office of International Affairs , Italy's Law Enforcement Agency

Type of Action:    DOJ Criminal Proceeding

Origin of the Proceeding:    N/A

Whistleblower:    Unknown

Case Status:    Resolved


Summary

Snamprogetti Netherlands B.V. ("Snamprogetti") was a Dutch corporation headquartered in Amsterdam, The Netherlands, and a wholly owned subsidiary of Snamprogetti S.p.A., an Italian engineering, procurement, and construction company headquartered in Milan, Italy.

Snamprogetti was part of a four-company joint venture called TSKJ, which was comprised of Technip of France, Snamprogetti Netherlands B.V. of the Netherlands, Kellogg Brown & Root of the United States, and JGC Corporation of Japan. Between 1995 and 2004, members of the joint venture devised and implemented a scheme to bribe Nigerian government officials to obtain contracts worth over $6 billion to build liquefied natural gas (LNG) production facilities. on Bonny Island in Nigeria The joint venture partners formed a "cultural committee" comprised of senior sales executives at each company, to consider how to carry out the bribery scheme. To conceal the illicit payments, the joint venture entered into sham contracts with a shell company controlled by a U.K. solicitor (Jeffrey Tesler, who was given $132 million for the purpose of bribing high-level Nigerian officials) and a Japanese trading company (Marubeni, which was given $51 million for the purpose of bribing low-level Nigerian officials) as conduits for the bribes. Total payments to the two agents exceeded $180 million.

On July 7, 2010, the DOJ filed a two-count criminal Information against Snamprogetti in the Southern District of Texas, charging Snamprogetti with one count of conspiracy to violate the FCPA and one count of aiding and abetting violations of the FCPA.

At the same time, Snamprogetti, its current parent company Saipem S.p.A., and its former parent company ENI, S.p.A., entered into a two year deferred prosecution agreement with the DOJ. Under the terms of the DPA, Snamprogetti agreed to pay a $240 million fine.


Country(ies) involved:    Nigeria

Sanction to Bribe Ratio:    $240,000,000 / $182,000,000 = 131.87 %

Sanction to Revenue Ratio:    $240,000,000 / $6,000,000,000 = 4.00 %

Sanction to Profit Ratio:    N/A

Number of Related Enforcement Actions (Including This Enforcement Action):    11

Country(ies) involved:    Nigeria

Total $ Bribery Payments:    $183,000,000

Total $ Revenue Generated from Bribery:    $6,000,000,000

Total $ Profit Earned or Expenses Avoided from Bribery:    N/A

Total $ Monetary Sanctions:    $1,715,938,854

Sanction to Bribe Ratio:    $1,715,938,854 / $183,000,000 = (937.67 %)

Sanction to Revenue Ratio:    $1,715,938,854 / $6,000,000,000 = (28.60 %)

Sanction to Profit Ratio:    N/A

Name:    Snamprogetti Netherlands B.V.

Place of Incorporation:    Netherlands

HQ Country(ies):    Netherlands

Entity Type:    Subsidiary

FCPA Claims:    Anti-Bribery, Conspiracy (18 U.S.C. 371) ; Anti-Bribery, Aiding and Abetting/Causing (18 U.S.C. § 2, 15 U.S.C. §§ 78dd-1, 78dd-2, and/or 78dd-3)

Related Claims:    N/A

Statutory Basis for FCPA Jurisdiction:    Conspirator ; Aider & Abettor/Cause/Control Person ; Issuer (Agent)


Name:    ENI, S.p.A.

Place of Incorporation:    Italy

HQ Country(ies):    Italy

Entity Type:    Public Company

FCPA Claims:    N/A

Related Claims:    N/A

Statutory Basis for FCPA Jurisdiction:    N/A


Name:    Saipem, S.p.A

Place of Incorporation:    Italy

HQ Country(ies):    Italy

Entity Type:    Affiliate

FCPA Claims:    N/A

Related Claims:    N/A

Statutory Basis for FCPA Jurisdiction:    N/A

Period of Bribery:   1994 - 2004

Total Bribery Payments:    $182,000,000

Total Revenue Generated from Bribery:    $6,000,000,000

Total Profit Earned or Expenses Avoided from Bribery:    N/A

Country(ies) involved:    Nigeria

Officials Potentially Influenced (Name; Title; Organization): 

  • Name N/A, Officials; Nigeria LNG Limited ("NLNG")
  • Name N/A, Officials; Nigerian National Petroleum Corporation ("NNPC")

Defendant-Related Entities Involved in the Misconduct:    N/A

Third-Party Intermediary:   

  • Marubeni Corporation , Agent/Consultant/Broker
  • Tri-Star Investments Ltd. , Agent/Consultant/Broker

Type of Bribe:   Money

Cash, Wire or Check:    N/A

Purpose of Bribe:    Obtain/retain business

TRANSACTION OVERVIEW
Payments made by the Joint Venture to Tesler for engineering contracts in Nigeria

Period of Bribery:   1994 – 2004

Total Bribery Payments:    $132,000,000

Total Revenue Generated from Bribery:    N/A

Total Profit Earned or Expenses Avoided from Bribery:    N/A

Country(ies) involved:    Nigeria

Officials Potentially Influenced (Name; Title; Organization):  

  • Name N/A, Officials; Nigerian National Petroleum Corporation ("NNPC");
  • Name N/A, Officials; Nigeria LNG Limited ("NLNG");

Defendant-Related Entities Involved in the Misconduct:    N/A

Third Party Intermediary:    Tri-Star Investments Ltd. - Agent/Consultant/Broker

Type of Bribe:   Money

Cash, Wire or Check:    N/A

Purpose of Bribe:    Obtain/retain business

TRANSACTION OVERVIEW
Payments made by the Joint Venture to Marubeni for engineering contracts in Nigeria

Period of Bribery:   1994 – 2004

Total Bribery Payments:    $50,000,000

Total Revenue Generated from Bribery:    N/A

Total Profit Earned or Expenses Avoided from Bribery:    N/A

Country(ies) involved:    Nigeria

Officials Potentially Influenced (Name; Title; Organization):  

  • Name N/A, Officials; Nigerian National Petroleum Corporation ("NNPC");
  • Name N/A, Officials; Nigeria LNG Limited ("NLNG");

Defendant-Related Entities Involved in the Misconduct:    N/A

Third Party Intermediary:    Marubeni Corporation - Agent/Consultant/Broker

Type of Bribe:   Money

Cash, Wire or Check:    N/A

Purpose of Bribe:    Obtain/retain business

Misconduct by Subsidiary?  Yes


Parent(s):   ENI, S.p.A.

Subsidiary:  Snamprogetti Netherlands B.V.

  • Percentage of Ownership:    100.00 %
  • Direct or Indirect Ownership:    Indirect
  • Parent Had Knowledge of Sub’s Bribery?:    No
  • Subsidiary Expressly Alleged to Be Parent's Agent:    No
  • Parent Liable for Sub Misconduct?:    No

M&A Negotiated or Completed During Misconduct, Investigation, or Resolution?     Yes

Type of Transaction:    Acquisition


Successor(s):   Saipem, S.p.A

Predecessor:  Snamprogetti Netherlands B.V.

  • Nature of Misconduct   
    • Misconduct Occurred Solely Pre-acquisition:    Yes
    • Misconduct Occurred Pre- and Post-acquisition, with NO Knowledge and/or Involvement of Successor:    No
    • Misconduct Occurred Pre and Post-acquisition, with Knowledge and/or Involvement of Successor:    No
  • Quality of Due Diligence:    N/A
  • Voluntary Disclosure by Successor in Connection with the Transaction:    No
  • DOJ Opinion Sought in Connection with Transaction:    No
  • Successor Liable for Predecessor Misconduct? :    Yes

  

N/A

Mitigating Factors Referenced by the Government (Company Defendants):

Defendant Self-Report Cooperation Voluntary Remedial Measures Misconduct Limited to Low Level Individuals Other factors
ENI, S.p.A.      
Saipem, S.p.A      
Snamprogetti Netherlands B.V.      

Aggravating Factors Referenced by the Government (Company Defendants):

Defendant Insufficient Cooperation Insufficient Remedial Measures
ENI, S.p.A.    
Saipem, S.p.A    
Snamprogetti Netherlands B.V.    

Total Monetary Sanctions for the Action:    $240,000,000

Case Status:    Resolved


Disposition:    Deferred Prosecution Agreement

Date of Disposition:    07/07/2010

Snamprogetti Netherlands B.V.

—  Total Monetary Sanctions for Defendant:    $240,000,000

—  Organizational Probation:    None

—  Compliance Obligation:    Yes

—  Reporting Obligation:    No reporting

—  Admission of Guilt/Acceptance of Responsibility:    Yes


ENI, S.p.A.

—  Total Monetary Sanctions for Defendant:    $0

—  Organizational Probation:    None

—  Compliance Obligation:    Yes

—  Reporting Obligation:    No reporting

—  Admission of Guilt/Acceptance of Responsibility:    No


Saipem, S.p.A

—  Total Monetary Sanctions for Defendant:    $0

—  Organizational Probation:    None

—  Compliance Obligation:    Yes

—  Reporting Obligation:    No reporting

—  Admission of Guilt/Acceptance of Responsibility:    No

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