The PBSJ Corporation (“PBSJ”) was an employee-owned engineering and construction firm incorporated in Florida and headquartered in Tampa. PBS&J International, Inc. (“PBS&J Int’l”) was a wholly-owned subsidiary of PBSJ headquartered and incorporated in Florida. PBS&J Int’l was a provider of engineering, architectural and planning services in international markets, including the Middle East. PBS&J Int’l currently is a subsidiary of WS Atkins plc.
Walid Hatoum was a United States citizen who initially worked for PBSJ as an engineer from 1986 until 1990. In February 2009, Hatoum was rehired to join PBS&J Int’l as its Director of International Marketing, although Hatoum assisted PBS&J Int’l with identifying projects as early as November 2008. Hatoum was promoted to President of PBS&J Int’l in mid-June 2009, and became an officer of PBSJ at the same time.
In 2009, Hatoum offered bribes to the then-Director of International Projects (“Foreign Official”) at Qatari Diar Real Estate Investment Company, which was established by the Qatari government to coordinate the country's real estate development. The purpose of the bribes was to secure access to confidential sealed-bid information and pricing information that helped PBS&J Int’l win two multi-million dollar government contracts for a hotel resort development project in Morocco and a light rail transit project in Qatar. Hatoum offered to pay the bribes through a local subcontractor that was owned and controlled by the Foreign Official. Ultimately, Hatoum offered and authorized payments totaling approximately $1,390,000 to secure the LRT and Morocco Projects, plus 40% of any profits realized from the LRT Project and a partial salary to the Foreign Official’s wife. Hatoum instructed subordinates to inflate PBS&J Int’l bids by concealing payments to the local subcontractor intended for Foreign Official. Hatoum also offered employment to a second foreign official in return for assistance as the bribery scheme began to unravel and PBSJ lost the hotel resort contract. Even though the bribes themselves were not consummated before the scheme was uncovered by the company, PBSJ earned approximately $2.9 million in illicit profits because it continued work on the light rail project until a replacement company could be found.
On January 22, 2015, PBSJ, now known as The Atkins North America Holdings Corporation, entered into a Deferred Prosecution Agreement with the SEC in which the SEC charged PBSJ with violating the anti-bribery, books and records, and internal control provisions of the FCPA. Under the terms of the DPA, PBSJ agreed to pay disgorgement and interest of $3,032,875 and a penalty of $375,000. The SEC credited PBSJ with taking quick steps to end the misconduct after self-reporting to the SEC, as well as voluntarily providing documents, making witnesses available for interviews and providing factual chronologies, timelines, internal summaries, and full forensic images to cooperate with the SEC’s investigation.
On the same day, the SEC filed a settled an administrative cease and desist action against Walid Hatoum, charging him with violating the anti-bribery, internal accounting controls, books and records, and false records provisions of the FCPA. Without admitting or denying the findings, Hatoum agreed to pay a penalty of $50,000.
