Parker Drilling Company provides worldwide drilling services, rental tools, and project management. Its shares trade on the NYSE under the ticker symbol PKD.
In late 2001, Parker Drilling retained Panalpina to obtain new temporary import permits (TIPs) for its Nigerian rigs. Between late 2001 and April 2002, in an effort to secure new TIPs for Parker Drilling's rigs, Panalpina submitted false paperwork to the Nigerian Customs Service, stating that the rigs had left Nigeria. The false paperwork allowed Parker Drilling to eliminate the costs associated with exporting and importing its rigs. Panalpina employees bribed Nigerian Customs Service officials to insure the success of the false paperwork.
The Panel of Inquiry (the "TI Panel") was a board empanelled for the purpose of examining certain duties and tariffs that the Nigerian Customs Service collected or failed to collect between 1984 and 2000. On or about May 12, 2004, the TI Panel assessed a fine of $3.8 million against Parker Drilling relating to gaps in its TIPs.
Parker Drilling sought to reduce this fine and retained a Law Firm, Outside Counsel, and hired a Nigerian agent. Parker Drilling paid a total of $1,250,000 to the Law Firm, Outside Counsel, and Nigerian agent, who used a portion of the money on various things including entertaining the Nigerian government officials. On May 26, 2004, the TI Panel reduced the fine to $750,000 without a factual basis for doing so.
On April 16, 2013, the DOJ filed a criminal information against Parker Drilling Company, charging the company with violating the anti-bribery provisions of the FCPA. At the same time the DOJ entered into a deferred prosecution agreement with Parker Drilling. Under the DPA, Parker Drilling agreed to pay a $11,760,000 penalty and to submit periodic reports to the DOJ on the status of the company's anti-corruption compliance policies and procedures.
In a related action, Parker Drilling entered a settlement with the SEC, agreeing to pay $3,050,000 in disgorgement and $1,040,000 in pre-judgment interest.
