Prosecuting Agency:
U.S. Securities and Exchange Commission
Type of Action:
SEC Federal Court Proceeding
Docket or Case Number:
86-cv-1904
Court:
District of Columbia
Name of Prosecuting Attorneys:
Gary Lynch, SEC Headquarters
William R. McLucas, SEC Headquarters
Bruce A. Hiler, SEC Headquarters
Richard P. Murphy, SEC Headquarters
William P. Sullivan, SEC Headquarters
US Assisting Agencies: Unknown
Foreign Enforcement Action/Investigation: Unknown
Foreign Assisting Agencies: Unknown
Origin of the Proceeding:
Unknown
Whistleblower:
Unknown
Case Status:
Resolved
Summary
Ashland Oil, Inc. ("Ashland") was a Kentucky corporation primarily engaged in the business of refining, transporting and marketing of crude oil products, with its executive offices located in Russell, Kentucky. Around September 1979, Ashland formed Ashland Development Inc. ("ADI"), a new wholly owned subsidiary, whose objectives were to engage in new ventures and acquisitions apart from Ashland's traditional lines of business.
Orin E. Atkins ("Atkins") was chairman of the board of directors and chief executive officer of Ashland from 1972 until September 17, 1981.
Ashland, pursuant to an agreement reached in April 1980, paid an entity controlled by James Landon, an Omani government official, approximately $29,000,000, during the period from April 22, 1980 until October 22, 1982, for a beneficial interest in entities owned by Landon and his family which held chrome and nickel mining claims in Zimbabwe. A foreign subsidiary of Ashland made the installment payments through wire transfers to a Swiss bank account designated by Landon's business manager. In return for the payments, Landon used his influence with the Omani government to obtain for Ashland price reductions in crude oil contracts. In September 1982, Ashland abandoned the mining claims in Zimbabwe and wrote off its entire investment after unsuccessful efforts to sell or interest other American and foreign corporations in jointly developing the claims.
On July 8, 1986, the SEC filed a complaint for permant injunction against Ashland and Atkins, charging them with violating the anti-bribery provisions of the FCPA. At the same time, without admitting or denying the SEC's allegations, Ashland and Atkins consented to the entry of final judgment permanently enjoining them from future violations of the FCPA.
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