News Sponsored by Infineum

Monday, June 10, 2013   VOLUME 9 ISSUE 23  
FREE SUBSCRIPTION!
Back to the Newsletter
News Sponsored by HollyFrontier
 News Sponsored by HollyFrontier
News Sponsored by Afton Chemical
 News Sponsored by Afton Chemical
News Sponsored by ICIS
 News Sponsored by ICIS
News Sponsored by Inter Lubric China
 News Sponsored by Inter Lubric China
Digital Book: LubriTec Synthetic Lube XRef - ED 5
Digital Book: LubriTec Synthetic Lube XRef - ED 5
Subscribe, Unsubscribe or Change Your Options
Click Here to Subscribe, Unsubscribe or Change Your Options
SEC Charges Total S.A. for Illegal Payments to Iranian Official

The Securities and Exchange Commission has charged France-based oil and gas company Total S.A. with violating the Foreign Corrupt Practices Act (FCPA) by paying $60 million in bribes to intermediaries of an Iranian government official who then exercised his influence to help the company obtain valuable contracts to develop significant oil and gas fields in Iran.

The SEC alleges that Total made more than $150 million in profits through the bribery scheme and attempted to cover up the true nature of the illegal payments by entering into sham consulting agreements with intermediaries of the Iranian official and mischaracterizing the bribes in its books and records as legitimate “business development expenses” related to the consulting agreements. The SEC alleges that Total had inadequate systems to properly review the consulting agreements and lacked sufficient internal controls to comply with federal laws prohibiting bribery.

Total agreed to pay more than $398 million to settle the SEC’s charges and a parallel criminal matter announced May 29, 2013 by the U.S. Department of Justice.

“Total used illicit payments to win business in Iran, and reaped substantial financial benefits as a result,” said Andrew M. Calamari, Director of the SEC’s New York Regional Office. “Total must now pay back all of its profits from the company’s corrupt conduct and additionally pay criminal penalties on top of that.”

According to the SEC’s order instituting settled administrative proceedings, Total negotiated a development contract in 1995 with the National Iranian Oil Company (NIOC) for the country’s Sirri A and E oil and gas fields. Prior to executing the contract, Total held a meeting with the Iranian official and agreed to enter into a purported consulting agreement with an intermediary he designated. They agreed that Total would make payments to the intermediary under the guise of a consulting agreement when the real purpose was to induce the Iranian official to use his influence to help obtain NIOC’s approval of the development agreement. After the contract was executed, Total corruptly made the bribery payments that resulted in NIOC allowing Total to develop the Sirri A and E oil and gas fields and make more than $150 million in profits, according to the SEC.

The SEC’s order requires Total to pay disgorgement of $153 million in illicit profits and retain an independent compliance consultant to review and report on Total’s compliance with the FCPA. Total also must cease and desist from committing or causing any violations of Section 30A, Section 13(b)(2)(A), and Section 13(b)(2)(B) of the Securities Exchange Act of 1934.

In the parallel criminal proceedings, Total agreed to pay a $245.2 million penalty as part of a deferred prosecution agreement. Charges also were recommended by the prosecutor of Paris (François Molins, Procureur de la République) of the Tribunal de Grande Instance de Paris for violations of French laws.

In a May 29, 2013 press release, Total S.A confirmed that it had reached final agreements with the United States Department of Justice and United States Securities and Exchange Commission putting an end to an investigation initiated in 2003 concerning petroleum contracts awarded in Iran in the 1990s, in which Total S.A agreed to pay a total amount of $398.2 million to the U.S. government. The DOJ considered and acknowledged Total’s cooperation and disclosure over the course of several years.

“These settlements, the outcome of which are customary in the United States, allow us to put an end to this investigation,” said Total’s CFO, Patrick de La Chevardière, “We look forward to continuing our work and in demonstrating our strong commitment to ensuring ethical and legal compliance with the laws around the world.”

The French investigation that started in 2006 has reached the stage of resolution. Total reaffirms that it has not committed any offense under applicable French law.


[PRINTER FRIENDLY VERSION]
News Sponsored by Inolex
 News Sponsored by Inolex
Reference Center

Global Lube Base Oil Specifications

API Group I
API Group II
API Group III
API Group IV
API Group V

Archive
June 3, 2013
May 27, 2013
May 20, 2013

[MORE]
Classifieds

Interested in posting a job position within your company to a targeted audience?


Circulation Audited by BPA Worldwide 

Please send all comments and correspondence to lubritec@aol.com.

Published by Lubrication Technologies, Inc.
Copyright © 2013 Lubrication Technologies, Inc.. All rights reserved.
FORWARD TO A COLLEAGUE
Privacy Policy
Powered by IMN