Settlements

ST-90
Bribery by Oil Services and Freight Forwarding Companies / Panalpina, Inc.
Bribery by Oil Services and Freight Forwarding Companies
United States
Department of Justice
Angola, Azerbaijan, Brazil, Kazakhstan, Nigeria, Russia, Turkmenistan, and other unspecified countries
2010
11/04
Unknown
Legal Person
Criminal
Guilty Plea
Criminal Fine
$70,560,000.00
$70,560,000
$0
Art.16, Art.26
Art. 1, Art. 2, Art. 8
Conspiracy to falsify books and records, Conspiracy to aiding and abetting falsification of books and records
Conspiracy to falsify books and records, Conspiracy to aiding and abetting falsification of books and records
No (Customs)
According to the US Department of Justice Press Release dated November 14, 2010, "In documents filed in U.S. District Court for the Southern District of Texas, Panalpina World Transport (Holding) Ltd., a global freight forwarding and logistics services firm based in Basel, Switzerland, and its U.S.-based subsidiary, Panalpina Inc., admitted that the companies, through subsidiaries and affiliates (collectively "Panalpina"), engaged in a scheme to pay bribes to numerous foreign officials on behalf of many of its customers in the oil and gas industry. They did so in order to circumvent local rules and regulations relating to the import of goods and materials into numerous foreign jurisdictions. Panalpina admitted that between 2002 and 2007, it paid thousands of bribes totaling at least $27 million to foreign officials in at least seven countries, including Angola, Azerbaijan, Brazil, Kazakhstan, Nigeria, Russia and Turkmenistan. Also today, Panalpina's customers, including Shell Nigeria Exploration and Production Company Ltd. (SNEPCO), Transocean Inc. and Tidewater Marine International Inc., admitted that the companies approved of or condoned the payment of bribes on their behalf in Nigeria and falsely recorded the bribe payments made on their behalf as legitimate business expenses in their corporate books, records and accounts. As part of the agreed resolution, the department today filed a criminal information charging Panalpina World Transport with conspiring to violate and violating the anti-bribery provisions of the FCPA. The department and Panalpina World Transport agreed to resolve the charges by entering into a deferred prosecution agreement. The department also filed a criminal information charging Panalpina Inc. with conspiring to violate the books and records provisions of the FCPA and with aiding and abetting certain customers in violating the books and records provisions of the FCPA. Panalpina Inc. has agreed to plead guilty to the charges. The agreements require the payment of a $70.56 million criminal penalty." (Source: US Department of Justice Press Release, "Oil Services Companies and a Freight Forwarding Company Agree to Resolve Foreign Bribery Investigations and to Pay More Than $156 Million in Criminal Penalties; SEC and Companies Agree to Civil Disgorgement and Penalties of Approximately $80 Million," November 4, 2010.)