Prosecuting Agency:
U.S. Securities and Exchange Commission
Type of Action:
SEC Administrative Proceeding
Docket or Case Number:
3-10572
Name of Prosecuting Attorneys:
Unknown
US Assisting Agencies: Unknown
Foreign Enforcement Action/Investigation: Unknown
Foreign Assisting Agencies: Unknown
Origin of the Proceeding:
Voluntary disclosure
Whistleblower:
Unknown
Case Status:
Resolved
Summary
Baker Hughes Incorporated ("Baker Hughes"), headquartered in Houston, Texas, was a global provider of comprehensive oil-field services and products which it provided through several subsidiaries and operating divisions.
In March 1999, Eric L. Mattson, the Chief Financial Officer of Baker Hughes, and James W. Harris, Baker Hughes' Controller, authorized the payment of a $75,000 bribe to a local government official in Indonesia. The bribe was made through KPMG-Siddharta Siddharta & Harsono ("KPMG-SSH"), Baker Hughes' agent and accountant in Indonesia. The purpose of the bribe was to lower the tax liability of PT Eastman Christensen, an Indonesian company beneficially owned by Baker Hughes, from $3,200,000 to $270,000, which would result in a net saving of $2,930,000.
Around the same time, managers at Baker Hughes authorized payments to Baker Hughes' agents in India and Brazil without making adequate inquiries as to whether the agents might give all or part of the payments to foreign government officials.
On September 12, 2001, without admitting or denying the SEC's allegations, Baker Hughes consented to the entry of a cease and desist order permanently enjoining the company from future violations of the FCPA's books and records and internal controls provisions. No monetary sanctions were imposed on Baker Hughes.
Protected Content
Please Log In or Sign Up for a free account to access restricted features of the Clearinghouse website, including the Advanced Search form and the full case pages.
When you sign up, you will have the option to save your search queries performed on the Advanced Search form.
