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Enforcement Action Dataset

 

Initiation Date:    05/17/2011  Information

Prosecuting Agency:    U.S. Securities and Exchange Commission

Type of Action:    Undetermined

Docket or Case Number:    N/A

Name of Prosecuting Attorneys:   

  • Cheryl J. Scarboro, SEC Headquarters

US Assisting Agencies:   

  • U.S. Department of Justice
  • 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

Tenaris S.A., headquartered in Luxembourg, was a global manufacturer and supplier of steel pipe products and related services to the oil and gas industry throughout the world.

OJSC O'ztashqineftgaz ("OAO") was a wholly owned subsidiary of Uzbekneftegaz, the state holding company of Uzbekistan's oil and gas industry.

According to the Non-Prosecution Agreement, from April 2006 to May 2007, Tenaris bid on a series of contracts with OAO to supply OAO with steel pipe for use in the development and production of oil and natural gas in Uzbekistan. In December 2006, Tenaris was introduced to an OAO agent to help Tenaris bid on additional contracts with OAO. As an incentive to retain the OAO agent, the agent offered Tenaris access to confidential bidding information of competitors obtained from officials in OAO's tender department, who would allow Tenaris to submit revised bids after reviewing this confidential information. Tenaris used the confidential competitor bid information to submit revised bids in order to increase the likelihood of being awarded contracts. Tenaris agreed to pay the OAO agent approximately 3 to 3.5% of the awarded contracts in exchange for OAO agent's services, knowing that all or a portion of the money would be given by the OAO agent to one or more OAO employees.

On July 2, 2007, Tenaris wired approximately $32,140.67 to the OAO agent through an intermediary bank. In total, OAO paid Tenaris approximately $8,934,573 for pipeline under the awarded contracts, and Tenaris profited by approximately $4,786,438 from those contracts.

On May 17, 2012, Tenaris entered into the SEC's first-ever Deferred Prosecution Agreement, agreeing to pay $4,786,438 in disgorgement, plus prejudgment interest of an estimated $641,900 for a total of $5,428,338. The Agreement allowed Tenaris to “neither admit nor deny” the allegations with only the provison that it could not dispute the facts in any subsequent SEC proceeding.

In a related action, Tenaris entered into a Non-Prosecution Agreement with the DOJ, agreeing to pay a $3,500,000 criminal penalty.

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