Settlements

ST-206
Ingersoll - Rand Company Limited
Ingersoll - Rand Company Limited
United States
Securities and Exchange Commission
Iraq (UN Oil-for-Food)
2007
10/31
Unknown
Legal Person
Civil
Consent to Permanent Injunction
Disgorgement of Profits, Prejudgment Interest, Civil Penalty
$4,220,987.00
$1,710,034
$560,953
$1,950,000
$0
Art.16, Art.26
Art. 1, Art. 2, Art. 8
Internal controls violations, Falsification of books and records
No admission or denial of alleged offenses
Yes
According to the US Securities and Exchange Commission Litigation Release, on October 31, 2007, the Commission "filed Foreign Corrupt Practices Act books and records and internal controls charges against Ingersoll-Rand Company Ltd., a New Jersey-based industrial equipment company, in the U.S. District Court for the District of Columbia. The Commission's complaint alleges that from 2000 through 2003, four of Ingersoll-Rand's subsidiaries entered into contracts in which $963,148 in kickback payments were made and $544,697 in additional payments were authorized in connection with sales of humanitarian goods to Iraq under the U.N. Oil for Food Program (the "Program"). The kickbacks were characterized as "after-sales service fees" ("ASSFs"), but no bona fide services were performed. The Program was intended to provide humanitarian relief for the Iraqi population, which faced severe hardship under international trade sanctions. It allowed the Iraqi government to purchase humanitarian goods through a U.N. escrow account. The kickbacks paid by Ingersoll-Rand's subsidiaries and third parties diverted funds out of the escrow account and into an Iraqi slush fund. The contracts submitted to the U.N. did not disclose that the illicit payments were included in the inflated contract prices. The complaint also alleges that $8,000 in "pocket money" and travel expenses were paid to Iraqi government officials in connection with a trip to Italy." (Source: US Securities and Exchange Commission, Litigation Release No. 20353 / October 31, 2007, Securities and Exchange Commission v. Ingersoll-Rand Company Ltd., Civil Action No. 107- CV- 01955 (D.D.C.) (JDB), "SEC Files Settled Books and Records and Internal Controls Charges Against Ingersoll-Rand Company Ltd. For Improper Payments to Iraq Under the U.N. Oil for Food Program - - Company Agrees to Pay Over $4.2 Million and to Make Certain Undertakings Regarding its Foreign Corrupt Practices Act Compliance Program.")