Settlements

ST-56
Baker Hughes Incorporated / Baker Hughes, Inc. (September 12, 2001 SEC Cease and Desist Order)
Baker Hughes Incorporated
United States
Securities and Exchange Commission
Indonesia, Kazakhstan, India, Brazil
2001
09/12
Unknown
Legal Person
Civil
Consent to Cease-and-Desist Order
None
$0.00
$0
$0
$0
$0
Art.16, Art.26
Art. 1, Art. 2, Art. 8
Bribery of foreign officials, False accounting, Internal controls violations, Falsification of books and records
No admission or denial of alleged offenses
Yes
According to the US Securities and Exchange Commission Administrative Proceeding File, "In March 1999, Baker Hughes' CFO and its Controller authorized an illegal payment, through KPMG, its agent in Indonesia, to a local government official in Indonesia. Baker Hughes, through its CFO and Controller, directed that this improper payment be made while knowing or aware that KPMG would pass all or part of the payment along to a foreign government official for the purpose of influencing the official's decision affecting the business of Baker Hughes. This improper payment was made in violation of the Foreign Corrupt Practices Act ("FCPA"). In addition, in 1998 and 1995, senior managers at Baker Hughes authorized payments to Baker Hughes' agents in India and Brazil, respectively, without making an adequate inquiry as to whether the agents might give all or part of the payments to foreign government officials in violation of the FCPA. Baker Hughes improperly recorded all three transactions in its books and records as routine business expenditures. In addition to its false books and records, Baker Hughes also failed to devise and maintain an adequate system of internal accounting controls to detect and prevent improper payments to foreign government officials and to provide reasonable assurance that transactions were recorded as necessary to permit the preparation of financial statements in conformity with Generally Accepted Accounting Principles." (Source: US Securities and Exchange Commission, In the Matter of Baker Hughes, Inc., Administrative Proceeding File No. 3-10572 [September 12, 2001].)