Saybolt North America Inc. was a business incorporated under the laws of the State of Delaware, with its principal place of business in Parsippany, New Jersey. Saybolt North America's primary business was conducting quantitative and qualitative testing of bulk commodities, such as oil, gasoline and other petrochemicals, as well as grains, vegetable oils and other commodities. Saybolt North America along with its subsidiary Saybolt Inc. are wholly owned by a holding company incorporated in the Netherlands, Saybolt International B.V. ("Saybolt International"). In 1997 Core Laboratories N.V. acquired Saybolt International B.V. for $67 million in cash and the assumption of $5 million in debt.
From 1994 to 1995, Saybolt North America Inc., Saybolt Inc., Saybolt International, B.V., and Saybolt Western Hemisphere conspired to make illegal payments to officials of the government of the Republic of Panama. $50,000 in illegal payments were made to: obtain contracts; to receive a substantial reduction in Saybolt Panama's tax payments to the government of Panama; and to secure a more permanent facility for Saybolt Panama's operations on highly coveted land near the Panama Canal.
The bribery payments were discovered during an investigation by the Environmental Protection Agency's criminal division over allegations of data falsification.
On August 18, 1998, the DOJ brought criminal proceedings against both Saybolt North America and Saybolt, Inc. The first set of charges, brought only against Saybolt, Inc., consisted of conspiracy to data falsification and wire fraud. The second set of charges, brought against both Saybolt, Inc. and Saybolt N.A., consisted of conspiracy to violate the FCPA and violation of the FCPA's anti-bribery provisions. Saybolt, Inc. and Saybolt N.A. both pled guilty, and Saybolt, Inc. agreed to pay a fine of $3,400,000 for its data falsification violations. Saybolt, Inc. and Saybolt N.A. were joint and severally liable for a $1,500,000 fine for the bribery violations.
In a related case, David H. Mead (President and CEO of Saybolt Inc.) was convicted on all counts, and was required to pay a $20,000 fine. David H. Mead was sentenced to 4 months in prision, 4 months home detension, and three years of supervised probation.
