Settlements

ST-94
Bribery by Oil Services and Freight Forwarding Companies / Pride International, Inc.
Bribery by Oil Services and Freight Forwarding Companies
United States
Securities and Exchange Commission
Nigeria, Venezuela, India, Mexico, Kazakhstan, Saudi Arabia, the Republic of the Congo, and Libya
2010
11/04
Unknown
Legal Person
Civil
Consent to Final Judgment
Disgorgement of Profits, Prejudgment Interest
$23,529,718.00
$19,341,870
$4,187,848
$0
$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 4, 2010, the Commission "charged one of the world's largest offshore drilling companies with violating the Foreign Corrupt Practices Act (FCPA) by paying approximately $2 million to foreign officials in eight countries. The SEC's complaint, filed in federal district court in Houston, alleges that from 2001 through 2006 Pride International, Inc. and its subsidiaries bribed government officials in Venezuela, India, Mexico, Kazakhstan, Nigeria, Saudi Arabia, the Republic of the Congo, and Libya. The bribery schemes allowed Pride and its subsidiaries to extend drilling contracts, obtain the release of drilling rigs and other equipment from customs officials, reduce customs duties, extend the temporary importation status of drilling rigs, lower various tax assessments, and obtain other improper benefits. [ ] According to the SEC's complaint, from 2003 through 2005, Pride's former Venezuela country manager authorized bribes totaling approximately $384,000 to an official of Venezuela's state-owned oil company to secure extensions of three drilling contracts. In addition, the country manager authorized a bribe of approximately $30,000 to an employee of Venezuela's state-owned oil company to secure the payment of receivables. The SEC alleges that in 2003 a French subsidiary of Pride paid three bribes totaling approximately $500,000, believing that the funds would be given to an Indian judge to influence customs litigation relating to the importation of a drilling rig. According to the complaint, a Pride employee in the U.S. had knowledge of the payments at the time they were made. The complaint alleges that in 2004 a former Pride vice president authorized a $10,000 bribe to a Mexican customs official in return for favorable treatment regarding customs deficiencies identified during an inspection of a supply boat. The SEC's complaint also alleges that from 2001 through 2006 numerous improper payments made by Pride subsidiaries operating in Mexico, Kazakhstan, Nigeria, Saudi Arabia, the Republic of the Congo, and Libya were not correctly recorded in those subsidiaries' books and records. As a result, the complaint alleges that Pride failed to make and keep accurate books and records and failed to devise and maintain appropriate internal controls." (Source: US Securities and Exchange Commission, Litigation Release No. 21726 / November 4, 2010, SEC v. Pride International, Inc., Civil Action No. 4:10-cv-4335 (S.D. Texas, November 4, 2010), "SEC Charges Pride International with Violating the Foreign Corrupt Practices Act.")