Processing your request


please wait...

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-278

Court:    E.D. New York

Origin of the Proceeding:    Unknown

Whistleblower:    Unknown

Case Status:    Resolved


Summary  Information

TechnipFMC plc ("TechnipFMC") was a global provider of oil and gas technology and services. TechnipFMC was the product of a 2017 merger between Technip S.A. ("Technip") and FMC Technologies, Inc. ("FMC Technologies").

Prior to the merger, 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. FMC Technologies was an oil field services and equipment company based in Texas. FMC Technologies' stock was registered with the SEC and traded on the New York Stock Exchange.

According to the documents in this case, TechnipFMC's predecessor companies engaged in two separate bribery schemes.

Between 2003 and 2014, Technip and others, including Technip USA, 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 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.

Between 2008 and 2013, FMC Technologies conspired to pay bribes to at least seven government officials in Iraq, including officials at the Ministry of Oil and Iraqi state-owned oil companies. The payments were made through Monaco-based Unaoil and often thrugh other Iraqi sub-agents in order to obtain contracts to provide metering technologies for oil and gas production measurement to the Iraqi government.

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 a related proceeding.

In a related proceeding initiated 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.

Country(ies) involved:    Brazil, Iraq

Region(s) involved:    Latin America, Middle East

Sanction to Bribe Ratio:    Not Applicable

Sanction to Revenue Ratio:    Not Applicable

Sanction to Profit Ratio:    Not Applicable

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):    6

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):    $192,545,018

Sanction to Bribe Ratio:    $192,545,018 / $55,000,000 = (350.08 %)

Sanction to Revenue Ratio:    Not Applicable

Sanction to Profit Ratio:    $192,545,018 / $351,800,000 = (54.73 %)

Name:    TechnipFMC plc

Entity Type:    Public Company

Place of Incorporation:    United Kingdom

HQ Country(ies):    United Kingdom

Industry:    Oil & Gas

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

Related Claims:    None

Statutory Basis for FCPA Jurisdiction:    Conspirator ; Issuer ; Domestic Concern (Stockholder) ; Foreign Nationals and Entities

Name:    FMC Technologies, Inc.

Entity Type:    Public Company

Place of Incorporation:    United States

HQ Country:    United States

Industry:    Oil & Gas


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:    Unknown

Total Revenue Generated from Bribery:    Unknown

Total Profit Earned or Expenses Avoided from Bribery:    Unknown

Country(ies) involved:    Brazil, Iraq

Region(s) involved:    Latin America, Middle East

Officials Potentially Influenced (Name; Title; Organization): 

  • Name Unknown, Officials; Petroleo Brasileiro S.A. - Petrobras
  • Name Unknown, Party Officials and Candidates; Workers Party of Brazil
  • Name Unknown, Employees; South Oil Company of Iraq
  • Name Unknown, Executives; Iraq Ministry of Oil

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

Third-Party Intermediary:   

  • Brazilian consultant , Agent/Consultant/Broker
  • Iraqi sub-agents , Agent/Consultant/Broker
  • Unaoil , Agent/Consultant/Broker

Type of Bribe:   Money

Cash, Wire or Check:    Not Available

Purpose of Bribe:    Obtain/retain business

TRANSACTION OVERVIEW
Misconduct 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 USA - Subsidiary ; 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
Misconduct in Iraq

Period of Bribery:   2008 – 2013

Total Bribery Payments:    Unknown

Total Revenue Generated from Bribery:    Unknown

Total Profit Earned or Expenses Avoided from Bribery:    $5,300,000

Country(ies) involved:    Iraq

Region(s) involved:    Middle East

Officials Potentially Influenced (Name; Title; Organization):  

  • Name Unknown, Employees; South Oil Company of Iraq;
  • Name Unknown, Executives; Iraq Ministry of Oil;

Affiliates, Subsidiaries and Joint Ventures Involved in the Misconduct:    None/Unknown

Third Party Intermediary:    Iraqi sub-agents - Agent/Consultant/Broker
Unaoil - 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?     Yes

Type of Transaction:    Merger


Successor:    TechnipFMC plc

Predecessor:  Technip S.A.

  • Nature of Misconduct   
    • Misconduct Occurred Solely Pre-acquisition:    Yes
    • Misconduct Occurred Pre- and Post-acquisition, with NO Knowledge and/or Involvement of Successor:    No/Unknown
    • Misconduct Occurred Pre and Post-acquisition, with Knowledge and/or Involvement of Successor:    No/Unknown
  • Quality of Due Diligence:    Unknown
  • Voluntary Disclosure by Successor in Connection with the Transaction:    No
  • DOJ Opinion Sought in Connection with Transaction:    No/Unknown
  • Successor Liable for Predecessor Misconduct? :    Yes

Predecessor:  FMC Technologies, Inc.

  • Nature of Misconduct    Unknown
  • Quality of Due Diligence:    Unknown
  • Voluntary Disclosure by Successor in Connection with the Transaction:    No
  • DOJ Opinion Sought in Connection with Transaction:    No/Unknown
  • Successor Liable for Predecessor Misconduct? :    Yes

  

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
TechnipFMC plc    

Aggravating Factors Referenced by the Government (Company Defendants):

Defendant Insufficient Cooperation Insufficient Remedial Measures
TechnipFMC plc    

Total Monetary Sanctions for the Action:    $81,852,967

Case Status:    Resolved


Disposition:    Deferred Prosecution Agreement

Date of Disposition:    06/25/2019

TechnipFMC plc

—  Total Monetary Sanctions for Defendant:    $81,852,967

—  Organizational Probation:    None

—  Compliance Obligation:    Yes

—  Reporting Obligation:    Self-reporting

—  Admission of Guilt/Acceptance of Responsibility:    Yes

No Document Title Date Category