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Enforcement Action Dataset

 

Initiation Date:    06/25/2019  Information

Prosecuting Agency:    US Department of Justice

Name of Prosecuting Attorneys:   

  • Richard P. Donoghue, United States Attorney
  • Robert A. Zink, Acting Chief, Fraud Section, Criminal Division
  • Bridget M. Rohde, Acting U.S. Attorney
  • Dennis R. Kihm, Trial Attorney, Fraud Section, Criminal Division
  • Derek J. Ettinger, Trial Attorney, Fraud Section, Criminal Division
  • Gerald M. Moody, Jr., Trial Attorney, Fraud Section, Criminal Division
  • Alixandra Smith, Assistant United States Attorney
  • Patrick T. Hein, Assistant United States Attorney

Assisting Agencies:    French Law Enforcement Agency , U.K. Law Enforcement Agency , Federal Bureau of Investigation , Brazilian Law Enforcement Agency , Italian Law Enforcement Agency , Guernsey Law Enforcement Agency , Australian Law Enforcement Agency , Monaco Law Enforcement Agency

Type of Action:    DOJ Criminal Proceeding

Docket or Case Number:    19-cr-279

Court:    E.D. New York

Origin of the Proceeding:    Unknown

Whistleblower:    Unknown

Case Status:    Resolved


Summary  Information

Technip S.A. ("Technip") was a global oil and gas technology and services company that was headquartered in France. Technip operated through a variety of foreign subsidiaries, including its wholly-owned American subsidiary Technip USA Inc. ("Technip USA). Between at least August 2001 and November 2007, Technip's shares were registered with the SEC and traded on the New York Stock Exchange.

According to the documents in this case, between 2003 and 2014, Technip USA and others, including Technip, a joint venture entered into with Keppel Offshore & Marine Ltd. ("KOM), and executives at Technip engaged in a conspiracy to make "commission" payments to a consultant, knowing that at least portion of those payments would be used to pay bribes to officials at Petrobras, Brazil's national oil company, as well as to the Workers' Party of Brazil, a Brazilian political party. These payments were made for the purpose of obtaining large offshore oil and gas projects in Brazil. In total, Technip USA and its co-conspirators made more than $69 million in payments as part of the scheme to obtain the oil and gas projects, and Technip and its subsidiaries earned approximately $135.7 million in profits connected to those payments.

On June 25, 2019, the DOJ filed a single count information in the Eastern District of New York against Technip USA alleging conspiracy to violate the anti-bribery provisions of the FCPA. On the same date, Technip USA entered into a plea agreement with the DOJ. Under the terms of the agreement, Technip USA agreed to pay a penalty of $500,000 plus a mandatory assessment of $400.

In a related proceeding initiated on June 25, 2019, the DOJ filed a two count information in the Eastern District of New York against TechnipFMC alleging conspiracy to violate the anti-bribery provisions of the FCPA. On the same date, TechnipFMC entered into a three-year deferred prosecution agreement with the DOJ. Under the terms of the settlement, TechnipFMC agreed to pay a total criminal penalty of $296,184,000 and to report on the status of its anti-corruption compliance policies and procedures for the term of the agreemet. The penalty was split between the U.S. and Brazilian governments. TechnipFMC agreed to pay $214,331,033 to the Brazilians and $81,852,967 to the U.S. The U.S. portion included the $500,000 fine levied against Technip USA in this proceeding.




Country(ies) involved:    Brazil

Region(s) involved:    Latin America

Sanction to Bribe Ratio:    $500,400 / $69,000,000 = 0.00 %

Sanction to Revenue Ratio:    Not Applicable

Sanction to Profit Ratio:    $500,400 / $135,700,000 = 0.00 %

FCPA Matter Name:   Keppel Offshore and TechnipFMC's Involvement in Brazil between 2001 and 2014 Information

Number of Related Enforcement Actions (Including This Enforcement Action):    5

Country(ies) involved:    Brazil, Iraq

Region(s) involved:    Latin America, Middle East

Total $ Bribery Payments:    $55,000,000

Total $ Revenue Generated from Bribery:    Unknown

Total $ Profit Earned or Expenses Avoided from Bribery:    $351,800,000

Total $ Monetary Sanctions (U.S. Sanctions Only):    $187,408,012

Sanction to Bribe Ratio:    $187,408,012 / $55,000,000 = (340.74 %)

Sanction to Revenue Ratio:    Not Applicable

Sanction to Profit Ratio:    $187,408,012 / $351,800,000 = (53.27 %)

Name:    Technip USA Inc.

Entity Type:    Subsidiary

Place of Incorporation:    United States

HQ Country(ies):    United States

Industry:    Oil & Gas

FCPA Claims:    Anti-Bribery, Conspiracy (18 U.S.C. 371)

Related Claims:    None

Statutory Basis for FCPA Jurisdiction:    Domestic Concern ; Conspirator

Name:    Technip/KOM Joint Venture

Entity Type:    Joint Venture

Place of Incorporation:    Singapore

HQ Country:    Brazil

Industry:   

Period of Bribery:   2003 - 2014

Total Bribery Payments:    $69,000,000

Total Revenue Generated from Bribery:    Unknown

Total Profit Earned or Expenses Avoided from Bribery:    $135,700,000

Country(ies) involved:    Brazil

Region(s) involved:    Latin America

Officials Potentially Influenced (Name; Title; Organization): 

  • Name Unknown, Officials; Petroleo Brasileiro S.A. - Petrobras
  • Name Unknown, Party Officials and Candidates; Workers Party of Brazil

Affiliates, Subsidiaries and Joint Ventures Involved in the Misconduct:    Technip/KOM Joint Venture - Joint Venture

Third-Party Intermediary:   

  • Brazilian consultant , Agent/Consultant/Broker

Type of Bribe:   Money

Cash, Wire or Check:    Not Available

Purpose of Bribe:    Obtain/retain business

TRANSACTION OVERVIEW
Payments in Brazil

Period of Bribery:   2003 – 2014

Total Bribery Payments:    $69,000,000

Total Revenue Generated from Bribery:    Unknown

Total Profit Earned or Expenses Avoided from Bribery:    $135,700,000

Country(ies) involved:    Brazil

Region(s) involved:    Latin America

Officials Potentially Influenced (Name; Title; Organization):  

  • Name Unknown, Officials; Petroleo Brasileiro S.A. - Petrobras;
  • Name Unknown, Party Officials and Candidates; Workers Party of Brazil;

Affiliates, Subsidiaries and Joint Ventures Involved in the Misconduct:    Technip/KOM Joint Venture - Joint Venture

Third Party Intermediary:    Brazilian consultant - Agent/Consultant/Broker

Type of Bribe:   Money

Cash, Wire or Check:    Not Available

Purpose of Bribe:    Obtain/retain business

Misconduct by Subsidiary?  Yes

Parent:    Technip S.A.

  • Subsidiary:  Technip USA Inc.

    • Percentage of Ownership:    100.00 %
    • Direct or Indirect Ownership:    Unknown
    • Parent Had Knowledge of Sub’s Bribery?:    No
    • Subsidiary Expressly Alleged to Be Parent's Agent:    No
    • Parent Liable for Sub Misconduct?:    No

Parent:    Keppel Offshore & Marine Ltd.

  • Subsidiary:  Technip/KOM Joint Venture

    • Percentage of Ownership:    75.00 %
    • Direct or Indirect Ownership:    Unknown
    • Parent Had Knowledge of Sub’s Bribery?:    No
    • Subsidiary Expressly Alleged to Be Parent's Agent:    No
    • Parent Liable for Sub Misconduct?:    No

Parent:    Technip USA Inc.

  • Subsidiary:  Technip/KOM Joint Venture

    • Percentage of Ownership:    25.00 %
    • Direct or Indirect Ownership:    Unknown
    • Parent Had Knowledge of Sub’s Bribery?:    No
    • Subsidiary Expressly Alleged to Be Parent's Agent:    No
    • Parent Liable for Sub Misconduct?:    No

M&A Negotiated or Completed During Misconduct, Investigation, or Resolution?     No

Not Applicable

Mitigating Factors Referenced by the Government (Company Defendants):

Defendant Self-Report Cooperation Voluntary Remedial Measures Misconduct Limited to Low Level Individuals Other factors
Technip USA Inc.    

Aggravating Factors Referenced by the Government (Company Defendants):

Defendant Insufficient Cooperation Insufficient Remedial Measures
Technip USA Inc.    

Total Monetary Sanctions for the Action:    $500,400

Case Status:    Resolved


Disposition:    Plea Agreement

Date of Disposition:    06/25/2019

Technip USA Inc.

—  Total Monetary Sanctions for Defendant:    $500,400

—  Organizational Probation:    None

—  Compliance Obligation:    No

—  Reporting Obligation:    N/A

—  Admission of Guilt/Acceptance of Responsibility:    Yes

    Note: This sanction may have been imposed jointly and severally on multiple defendants, or it may resolve claims against more than one defendant in this proceeding or related proceedings. You should review the case summaries and resolution documents for all related cases to better understand how sanctions were levied against the defendants.

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