Defendant Pride International Inc. was a Houston-based corporation which owned and operated numerous oil and gas drilling rigs throughout the world. Pride Forasol S.A.S. was a wholly owned French subsidiary of Pride International.
From January 2003 through December 2004, certain Pride International subsidiaries and their branches paid a total of approximately $800,000 in bribes directly and indirectly to government officials in Venezuela, India and Mexico. The bribes were paid to extend drilling contracts for three rigs operating offshore in Venezuela; to secure a favorable administrative judicial decision relating to a customs dispute for a rig imported into India; and to avoid the payment of customs duties and penalties relating to a rig and equipment operating in Mexico. The benefit that Pride International received as a result of these payments was at least $13 million.
On August 4, 2010, the DOJ filed a criminal Information charging Pride International with conspiracy to violate the anti-bribery provisions of the FCPA, violating the anti-bribery provisions of the FCPA, and violating the books and records provisions of the FCPA. At the same time the DOJ entered into a three year deferred prosecution agreement with Pride International. Pride International agreed to pay a fine of $32,625,000, but 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 International in a merger and assumed the obligations of Pride International under the DPA. Since the merger, the business operations of both Pride International and Pride Forasol were integrated into those of Ensco. On November 2, 2012, the DOJ filed a motion to dismiss to DPA that had been filed against Pride International, 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.
In a related action, without admitting or denying the SEC's allegations, the VP of Pride International, Bobby Benton consented to the entry of the Final Judgment permanently enjoining him from future violations of the FCPA. Bobby Benton was ordered to pay a $40,000 civil penalty.
