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 | Enforcement Action Dataset

Stanford Foreign Corrupt Practices Act Clearinghouse a Collaboration with Sullivan & Cromwell LLP

Enforcement Action Dataset

 
United States of America v. JGC Corporation · TSKJ's Involvement in Nigeria from 1994 to 2004

Case Information

United States of America v. JGC Corporation

Related FCPA Matter:   TSKJ's Involvement in Nigeria from 1994 to 2004 Information

Case Information

Initiation Date:    04/06/2011  Information

Prosecuting Agency:    U.S. Department of Justice

Type of Action:    DOJ Criminal Proceeding

Docket or Case Number:    11-cr-00260

Court:    S.D. Texas

Name of Prosecuting Attorneys:   

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

US Assisting Agencies:   

  • U.S. Securities and Exchange Commission
  • Federal Bureau of Investigation
  • Department of Justice - Criminal Division's Office of International Affairs

Foreign Enforcement Action/Investigation:    Unknown

Foreign Assistance:   

  • French Law Enforcement Agency (FR)
  • Swiss Law Enforcement Agency (CH)
  • U.K. Law Enforcement Agency (GB)
  • Italian Law Enforcement Agency (IT)

Origin of the Proceeding:    Foreign investigation

Whistleblower:    Unknown

Case Status:    Resolved


Summary  Information

JGC Corporation, formerly Japan Gasoline Co., was a global engineering company headquartered in Yokohama, Japan.

JGC 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 April 6, 2011, the DOJ filed a criminal Information against JGC Corporation in the Southern District of Texas, charging JGC with one count of conspiracy to violate the FCPA and one count of aiding and abetting violations of the FCPA. At the same time, the DOJ entered into a deferred prosecution agreement with JGC. Under the terms of the DPA, JGC agreed to pay a monetary penalty of $218.8 million and to retain an independent compliance consultant for a period of two years.

On April 26, 2013, JGC met its obligations under the DPA, and the department dismissed with prejudice the criminal information.

On March 21, 2014 the African Development Bank levied a $5.2 million fine against JGC. The African Development Bank also levied a $5.3 million penalty against Technip and a $6.5 million penalty against Kellogg Brown & Root LLC.

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