Tidewater Inc. ("TDW") provides offshore service vessels and marine support services to the global offshore energy industry through the operation of a fleet of marine service vessels. Tidewater Marine International, Inc. ("TMII") was a wholly-owned subsidiary of TDW.
Tidewater, directly or through its subsidiaries and agents, paid $160,000 in bribes to foreign government officials in Azerbaijan in 2001, 2003 and 2005 in order to influence acts and decisions by Azeri tax officials to resolve local audits in favor of a Tidewater subsidiary. The benefit received and the potential tax liability avoided from those bribes was approximately $820,000.
From January 2002 through March 2007, Tidewater, through a subsidiary, reimbursed approximately $1.6 million to its customs broker in Nigeria used to make improper payments to Nigerian Customs Services (“NCS”) officials. These improper payments were made in order to induce the Nigerian officials to disregard regulatory requirements in Nigeria relating to the temporary importation of Tidewater's vessels into Nigerian waters. TMII managers and employees were aware of and condoned the payments. Tidewater improperly recorded these payments as legitimate expenses in its books and records.
On November 4, 2010, the DOJ filed a criminal information against TMII, charging the company with conspiracy to violate the anti-bribery and books and records provisions of the FCPA, and aiding and abetting violations of the books and records provisions of the FCPA. At the same time, TMII entered into a three year deferred prosecution agreement with the DOJ. Under the DPA, TMII will pay a $7,350,000 criminal penalty.
In a related action, without admitting or denying the SEC's allegations, TDW consented to the entry of final judgment permanently enjoining the company from violating the anti-bribery, books and records, and internal controls provisions of the FCPA. TDW was ordered to pay $7,223,216 in disgorgment, $881,146 in prejudgment interest, and a $217,000 civil penalty.
