Settlements

ST-85
Bribery by Oil Services and Freight Forwarding Companies / GlobalSantaFe Corp.
Bribery by Oil Services and Freight Forwarding Companies
United States
Securities and Exchange Commission
Nigeria, Gabon, Angola, Equatorial Guinea
2010
11/04
Unknown
Legal Person
Civil
Consent to Permanent Injunction
Disgorgement of Profits, Prejudgment Interest, Civil Penalty
$5,858,165.00
$2,694,405
$1,063,760
$2,100,000
$0
Art.16, Art.26
Art. 1, Art. 2, Art. 8
Bribery of foreign officials, Falsification of books and records, Internal controls violations
No admission or denial of alleged offenses
No (Customs)
According to the US Securities and Exchange Commission Litigation Release, on November 3, 2010, the Commission "charged GlobalSantaFe Corp. (GSF) (c/k/a Transocean Worldwide Inc.) with bribery and other violations of the Foreign Corrupt Practices Act (FCPA). According to the SEC?s complaint, filed today in federal district court in Washington, D.C., from approximately January 2002 through July 2007, GSF made illegal payments to officials of the Nigerian Customs Service (NCS), through companies acting as customs brokers for GSF. In November 2007, GSF, an oil and gas drilling services company, merged with a subsidiary of Transocean Inc. In December 2008, the listed company became Transocean Ltd. [ ] The SEC alleges that GSF [GlobalSantaFe Corp], through its customs brokers, made other suspicious payments, some characterized as "interventions," to Nigerian customs officials. In addition, GSF similarly made a number of suspicious payments to government officials in Gabon, Angola, and Equatorial Guinea. These payments were described on invoices as, for example, "customs vacation," "customs escort," "costs extra police to obtain visa," "official dues," and "authorities fees." None of the payments were accurately reflected in GSF's books and records, nor was GSF's system of internal accounting controls adequate at the time to detect and prevent these illegal payments. Without admitting or denying the SEC's allegations, GSF has consented to the entry of a court order permanently enjoining it from violating the anti-bribery and record keeping and internal controls provisions in Section 30A and Sections 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act. GSF also consented to the entry of a court order requiring GSF to pay disgorgement of $2,694,405, prejudgment interest of $1,063,760, and a civil penalty of $2.1 million." (Source: US Securities and Exchange Commission, Litigation Release No. 21724 / November 4, 2010, Securities and Exchange Commission v. GlobalSantaFe Corp., Civil Action No. 1:10-CV-01890 (RMC) (D.D.C.), "SEC Charges GlobalSantaFe with Bribery and other FCPA Violations.")