Weatherford International, an oilfield services company, has agreed to a settlement to resolve probes into a number of matters, including bribery, export control and violations of sanctions.
The company, which was founded in Texas but is now based in Geneva, was the subject of multiple investigations. Weatherford made two deferred-prosecution agreements and issued guilty pleas from three of its units, in an attempt to resolve the probes. The primary result, was the payment of $252.7 million in penalties and fines, according to the U.S. Justice Department.
“This case demonstrates how loose controls and an anemic compliance environment can foster foreign bribery and fraud by a company’s subsidiaries around the globe,” said Acting Assistant Attorney General Mythili Raman in a statement.
The breakdown of the fines covered a range of wrongdoing, including:
- $87.2 million – a deferred-prosecution agreement with the Justice Department to resolve allegations of foreign bribery
- $65.6 million – disgorgement and civil penalties to be paid to the Securities and Exchange Commission
- $100 million – payment by the company and four of its subsidiaries as part of a separate deferred-prosecution agreement involving sanctions violations
Among the Foreign Corrupt Practices Act allegations, Weatherford is accused of bribing officials of a state-run Algerian oil company with a variety of trips. The SEC has determined that Weatherford made profits of over $59 million as a result of various bribes. The company also engaged in business in a variety of countries that have known terrorist affiliations, such as Cuba, Iran, Syria and Sudan.
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