Settlements

ST-213
Innospec, Inc. / Ousama Naaman
Innospec Inc.
United States
Department of Justice
Iraq (UN Oil-for-Food)
2010
06/25
[United Kingdom - ongoing criminal investigation]
Individual
Criminal
Guilty Plea
Criminal Fine
$250,000.00
$250,000
$0
Art.16
Art. 1, Art. 8, Art. 10
Conspiracy to Bribe Foreign Officials, Conspiracy to Falsify Books and Records, Conspiracy to Commit Wire Fraud, Bribery of Foreign Officials
Conspiracy to Bribe Foreign Officials, Conspiracy to Falsify Books and Records, Conspiracy to Commit Wire Fraud, Bribery of Foreign Officials
Yes
According to the US Department of Justice Press Release, "Canadian/Lebanese dual national Ousama M. Naaman pleaded guilty today to participating in an eight-year conspiracy to defraud the United Nations Oil for Food Program (OFFP) and to bribe Iraqi government officials in connection with the sale of a chemical additive used in the refining of leaded fuel. [ ] Naaman, 61, of Abu Dhabi, United Arab Emirates, was originally indicted on Aug. 7, 2008, in U.S. District Court for the District of Columbia. Naaman was arrested on July 30, 2009, in Frankfurt, Germany, and extradited to the United States. [ ] Naaman and his companies were the Iraqi agents of Innospec Inc., a U.S. company. On March 18, 2010, Innospec pleaded guilty to a 12-count indictment charging wire fraud in connection with its payment of kickbacks to the Iraqi government under the OFFP, as well as violations of the FCPA in connection with bribe payments it made to officials in the Iraqi Ministry of Oil. From 2001 to 2003, acting on behalf of Innospec, Naaman offered and paid 10 percent kickbacks to the then Iraqi government in exchange for five contracts under the OFFP. Naaman negotiated the contracts, including a 10 percent increase in the price to cover the kickback, and routed the funds to Iraqi government accounts in the Middle East. Innospec inflated its prices in contracts approved by the OFFP to cover the cost of the kickbacks. Naaman also admitted that from 2004 to 2008, he paid and promised to pay more than $3 million in bribes, in the form of cash, as well as travel, gifts and entertainment, to officials of the Iraqi Ministry of Oil and the Trade Bank of Iraq to secure sales of tetraethyl lead in Iraq, as well as to secure more favorable exchange rates on the contracts. Naaman provided Innospec with false invoices to support the payments, and those invoices were incorporated into the books and records of Innospec." (Source: US Department of Justice Press Release, "Innospec Agent Pleads Guilty to Bribing Iraqi Officials and Paying Kickbacks Under the Oil for Food Program," June 25, 2010.) According to the Court Docket Report in his case, on December 22, 2011, Naaman was sentenced and ordered to pay $250,000 fine. (Source: US v. Naaman, Case No. 1:08-cr-00246-ESH-1 (D.D.C.), Court Docket Report retrieved via Pacer on January 12, 2012.)