Settlements

ST-120
Chevron Corporation (UN Oil-for-Food)
Chevron Corporation
United States
Securities and Exchange Commission
Iraq (UN Oil-for-Food)
2007
11/14
Unknown
Legal Person
Civil
Consent to Permanent Injunction
Disgorgement of Profits, Civil Penalty
$3,000,000.00
$3,000,000
$0
Art.16, Art.26
Art. 1, Art. 2
Internal controls violations
No admission or denial of alleged offeses
Yes
According to a press release by the United States Attorney for the Southern District of New York, on November 14, 2007, the United States Attorney for the Southern District of New York, the District Attorney for New York County, and the Department of the Treasury's Office of Foreign Assets Control ("OFAC"), "announced an agreement ("the Agreement") resolving the criminal and civil regulatory liabilities of CHEVRON CORPORATION and its subsidiaries ("CHEVRON") relating to CHEVRON's procurement of Iraqi oil under the United Nations Oil-for-Food Program. According to the Agreement, CHEVRON obtained Iraqi oil under the Program from third parties that paid secret, illegal surcharges to the former government of Iraq, in violation of United States wire fraud statutes and administrative regulations that prohibited transactions with the former Government of Iraq. Pursuant to the Agreement, CHEVRON will make the following payments totaling $27,000,000: (1) forfeiture of $20,000,000 to the U.S. Attorney's Office for the Southern District of New York ("SDNY"), which will seek to transfer that money to the Development Fund of Iraq (established on May 21, 2003, by United Nations Security Council Resolution 1483) to be paid as restitution for the benefit of the people of Iraq; (2) $5,000,000 to the New York County District Attorney's Office ("DANY") to be distributed as DANY shall deem appropriate; and (3) $2,000,000 to OFAC in settlement of civil penalties. In a separate agreement, CHEVRON agreed to pay an additional monetary penalty of $3,000,000 to the Securities and Exchange Commission ("SEC"), and to pay disgorgement of $25,000,000, which will be satisfied by their payments to SDNY and DANY." (Source: United States Attorney for the Southern District of New York Press Release, "Chevron Corproation Agrees to Pay $30 Million in Oil-for-Food Settlement," November 14, 2007.) The Press Release also noted that, "This case is one of many that are the result of an unprecedented, wide-ranging criminal investigation into the United Nations Oil-for-Food Program. [ ] To date, the investigation has produced cases against 12 individuals and 7 entities (including CHEVRON) -- of which 6 individuals and 2 entities pleaded guilty, 1 individual was found guilty at trial, and 2 entities reached agreements with SDNY. The remaining cases are pending. Also as a result of the investigation, over $47.5 million in criminal proceeds has been forfeited or has been agreed to be forfeited to SDNY; SDNY will seek to transfer these funds to the Development Fund of Iraq as restitution for the benefit of the people of Iraq." (Source: Ibid.)