Settlements

ST-395
York International Corporation
York International Corporation
United States
Department of Justice
Iraq (UN Oil-for-Food), United Arab Emirates
2007
10/01
Unknown
Legal Person
Criminal
Deferred Prosecution Agreement
Criminal Fine
$10,000,000.00
$10,000,000
$0
Art.16, Art.23, Art.26
Art. 1, Art. 2, Art. 7, Art. 8
Conspiracy to falsify books and records, Conspiracy to commit wire fraud, Falsification of books and records, Wire fraud
Conspiracy to falsify books and records, Conspiracy to commit wire fraud, Falsification of books and records, Wire fraud
Yes
According to US Department of Justice Report to Congress, Appendix C "Summaries of Foreign Corrupt Practices Act Enforcement Actions by the United States, January 1, 1998 - September 30, 2010," York International Corporation, at 47-48, accessed at www.justice.gov/criminal/fraud/fcpa/docs/response3-appx-c.pdf: the charges against York stemmed in part from the actions of its Dubai-headquartered subsidiary, York Air Conditioning and Refrigeration FZE ("York FZE"), whose employees and agents paid approximately $647,110 in kickbacks to Iraqi government officials from 2000 to 2003 in order to obtain contracts to provide air conditioning, ventilation and refrigeration equipment and services to Iraq under the UN Oil-for-Food program. (York FZE was a subsidiary of York Air Conditioning and Refrigeration Inc., a Delaware formed subsidiary of York International, whose branch office in Dubai served as headquarters of York's Middle East operations.) According to the Statement of Facts, approximately $7 milion in Iraqi contracts were obtained as a result; all contracts through the UN Oil-for-Food program. Additionally, from 1999 to 2005, employees of YACR and York FZE paid kickbacks and bribes to employees of government customers and contractors of government customers in order to obtain and retain approximately $42 million in contracts on government projects in UAE, Egypt, Babrain, Turkey, and India. In the UAE, during 2003-20004, YACR and York FZE secured contractss worth $3.7 million related to a luxury hotel and convention complex in Abu Dhabi; the subsidiaries made 13 payments totalling $550,000 to an intermediary in circumstances that make it likely that the intermediary made corrupt payments to members of the hotel and convention complex's executive committee, which was established by UAE government decree and which represented the UAE's Ministry of Finance and Industry in managing the construction of the complex. (para 41) (Source: US v. York International Corporation, Case No. 1:07-cr-00253-RJL (D.D.C.), Deferred Prosecution Agreement and Statement of Facts, filed October 15, 2007). No additional details were given in the Statement of Facts with regard to the misconduct in the other jurisdictions noted in the Securities and Exchange Commission complaint.