Legal News

Weatherford International Charged With FCPA Violations
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Oilfield services company Weatherford International has been charged with violating the Foreign Corrupt Practices Act (FCPA) by the US Securities and Exchange Commission. The SEC charged Weatherford with authorizing bribes and improper travel and entertainment for foreign officials in Africa and the Middle East to win business.

The company was also charged with paying kickbacks in Iraq to obtain UN Oil-for-Food contracts.

  
What
Where


According to documents, SEC alleged that Weatherford and its subsidiaries carried out commercial transactions with Cuba, Syria, Iran and Sudan violating US sanctions and export control laws. The company failed to establish an effective system of internal control and, along with its subsidiaries, falsified books and records to conceal illicit payments and transactions violating US sanctions.

Weatherford has already agreed to pay more than $250 million to settle the charges and parallel actions conducted by the Fraud section of the US Department of Justice.

Andrew Ceresnev, co-director of the SEC’s Enforcement Division said, “They used code names like ‘Dubai across the water’ to conceal references to Iran in internal correspondence, placed key transaction documents in mislabeled binders, and created whatever bogus accounting and inventory records were necessary to hide illegal transactions.”

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




He further said the nonexistence of internal controls at the company “fostered an environment where employees across the globe engaged in bribery and failed to maintain accurate books and records.”

According to the complaint filed in federal court in Houston, the alleged misconduct took place between 2002 and 2011.



In a single instance, the SEC found Weatherford and its subsidiaries awarded more than $11.8 million in improper “volume discounts” to a distributor who was suggested by an official at a national oil company in the Middle East.

Going beyond the simple use of agents or other third parties, Weatherford provided improper entertainment and travel to officials of a state-owned company in Algeria without any legitimate business purpose. Managers of the company in Italy misappropriated more than $200,000 in company funds – some of which was paid to Albanian tax auditors.



 

RELEVANT JOBS

Litigation Associate

USA-NY-New York City

Position Overview DGW Kramer LLP is seeking an associate with a minimum of 2 years of general com...

Apply now

Corporate Counsel, Securities

USA-CA-San Diego

Position Summary The Corporate Counsel, Securities plays an important role in the organization by...

Apply now

FT Legal Assistant Wanted For Personal Injury Law Firm

USA-FL-Weston

FT Legal Assistant / Clerk Wanted For Personal Injury / Victim\'s Rights Law Firm Law Office...

Apply now

Associate Litigation Attorney

USA-CA-Irvine

The Law Offices of Samer Habbas is a high-volume, fast-paced firm seeking a motivated and driven att...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Real Estate Attorney

USA-NJ-Parsippany

Parsippany office of a BCG Attorney Search Top Ranked Law Firm seeks real estate attorney with 5 yea...

Apply Now

Corporate Advisory Associate Attorney

USA-IL-Chicago

Chicago office of a BCG Attorney Search Top Ranked Law Firm seeks corporate advisory associate attor...

Apply Now

Trademark and Copyright Portfolio Associate Attorney

USA-CA-San Francisco

San Francisco office of a BCG Attorney Search Top Ranked Law Firm seeks a trademark and copyright po...

Apply Now

SEARCH IN ARCHIVE

To Top