SEC Charges Amec Foster Wheeler Limited With FCPA Violations Related To Brazilian Bribery Scheme
Foster Wheeler paid $43 million to settle FCPA violations involving $1.1 million in bribes to Brazilian officials for a Petrobras contract.
The SEC charged Foster Wheeler with FCPA violations for a bribery scheme in Brazil, where its UK subsidiary paid approximately $1.1 million in bribes to secure a Petrobras contract. As part of a coordinated resolution with multiple agencies, the company agreed to pay over $43 million, with $10.1 million going to the SEC. Foster Wheeler admitted to violating FCPA provisions and consented to a cease-and-desist order, paying $22.7 million in disgorgement and prejudgment interest.
The Securities and Exchange Commission (SEC) charged Amec Foster Wheeler Limited (Foster Wheeler) with violations of the Foreign Corrupt Practices Act (FCPA) related to a bribery scheme in Brazil. Between 2012 and 2014, Foster Wheeler's UK subsidiary, Foster Wheeler Energy Limited (FWEL), made improper payments totaling approximately $1.1 million to Brazilian officials in an effort to secure an oil and gas engineering and design contract with the Brazilian state-owned company, Petrobras, known as the UFN-IV project. These bribes were facilitated through third-party agents, including one who failed Foster Wheeler's due diligence process but was allowed to continue working on the project. As part of a coordinated resolution with the U.S. Department of Justice, the Brazil Controladoria-General da União (CGU)/Advocacia-Geral da União (AGU), the Ministério Público Federal (MPF), and the United Kingdom Serious Fraud Office (SFO), Foster Wheeler agreed to pay more than $43 million in total penalties across multiple jurisdictions. This included $22.7 million in disgorgement and prejudgment interest, with offsets for up to $9.1 million paid to Brazilian agencies and $3.5 million to the SFO. The SEC's order found that Foster Wheeler violated the anti-bribery, books and records, and internal accounting controls provisions of the FCPA, and the company consented to a cease-and-desist order. The minimum payment to the SEC was approximately $10.1 million, with the investigation conducted by SEC staff including Ilana Sultan and Denise Hansberry, supervised by Tracy L. Price.
Exhibits & Attached Documents (1)
Extracted insights
- $43.00M $43 million $10M–$100M
- $22.70M $22.7 million $10M–$100M
- $10.10M $10.1 million $10M–$100M
- $9.10M $9.1 million $1M–$10M
- $3.50M $3.5 million $1M–$10M
- $1.10M $1.1 million $1M–$10M
- agency $22.7 million in disgorgement and prejudgment interest to sec
- company amec foster wheeler limited
- person charles cain
- agency chief of sec enforcement division's fcpa unit
- person denise hansberry
- agency deputy chief of sec enforcement division's fcpa unit
- person foster wheeler
- company foster wheeler energy limited
- person ilana sultan
- company john wood group plc
- agency sec investigation
- agency Securities and Exchange Commission
- person tracy l. price
- person tracy price
- SEC announced charges against Amec Foster Wheeler Limited for FCPA violations
- Amec Foster Wheeler Limited engaged in bribery scheme in Brazil from 2012 through 2014
- Foster Wheeler Energy Limited made improper payments to Brazilian officials for UFN-IV project contract
- Amec Foster Wheeler Limited paid $1.1 million in bribes
- Amec Foster Wheeler Limited agreed to pay $43 million in coordinated resolutions
- Amec Foster Wheeler Limited agreed to pay $22.7 million in disgorgement and prejudgment interest to SEC
- Amec Foster Wheeler Limited violated anti-bribery, books and records, and internal accounting controls provisions of FCPA
- John Wood Group PLC currently owns Foster Wheeler
- Amec Foster Wheeler Limited sought to obtain oil and gas engineering contract from Petrobras for UFN-IV project
- Tracy Price is Deputy Chief of SEC Enforcement Division's FCPA Unit
- Charles Cain is Chief of SEC Enforcement Division's FCPA Unit
- Ilana Sultan conducted SEC investigation
- Denise Hansberry conducted SEC investigation
- Tracy L. Price supervised SEC investigation
The Securities and Exchange Commission today announced charges against Amec Foster Wheeler Limited (Foster Wheeler) for violations of the Foreign Corrupt Practices Act (FCPA) arising out of a bribery scheme that took place in Brazil. As part of coordinated resolutions with the SEC, the U.S. Department of Justice, the Brazil Controladoria-General da Uniᾶo (CGU)/Advocacia-Geral da Uniᾶo (AGU) and the Ministério Publico Federal (MPF), and the United Kingdom Serious Fraud Office (SFO), the company has agreed to pay more than $43 million related to this scheme, including more than $10.1 million to settle the SEC's charges. The SEC's order finds that Foster Wheeler, a company that provided project, engineering, and technical services to energy and industrial markets worldwide, engaged in a scheme to obtain an oil and gas engineering and design contract from the Brazilian state-owned oil company, Petroleo Brasileiro S.A. (Petrobras), known as the UFN-IV project. According to the order, from 2012 through 2014, Foster Wheeler's UK subsidiary, Foster Wheeler Energy Limited (FWEL), made improper payments to Brazilian officials in connection with its efforts to win the contract and establish a business presence in Brazil. The bribes were paid through third party agents, including one agent who failed Foster Wheeler's due diligence process, but was allowed to continue working "unofficially" on the UFN-IV project. According to the order, Foster Wheeler paid approximately $1.1 million in bribes in connection with obtaining the contract. "Continuing to use an agent who presented a significant corruption risk so that Foster Wheeler could expand its business and win a contract in Brazil demonstrates a fundamental flaw in the corporate compliance program," said Tracy Price, Deputy Chief of the SEC Enforcement Division's FCPA Unit. "The potential for a new market cannot be a siren's song that overwhelms good corporate governance," said Charles Cain, Chief of the SEC Enforcement Division's FCPA Unit. Foster Wheeler, which is currently owned by John Wood Group PLC, consented to the SEC's cease-and-desist order finding that it violated the anti-bribery, books and records, and internal accounting controls provisions of the FCPA and agreed to pay $22.7 million in disgorgement and prejudgment interest. The SEC's order provides for offsets for up to $9.1 million of any disgorgement paid to the CGU/AGU and the MPF in Brazil and up to $3.5 million of any disgorgement paid to the SFO in the United Kingdom. Therefore, the company's minimum payment to the SEC would be approximately $10.1 million. The SEC's investigation was conducted by Ilana Sultan and Denise Hansberry and supervised by Tracy L. Price. The SEC appreciates the assistance of the CGU/AGU and the MPF in Brazil and the SFO in the United Kingdom.
The Securities and Exchange Commission today announced charges against Amec Foster Wheeler Limited (Foster Wheeler) for violations of the Foreign Corrupt Practices Act (FCPA) arising out of a bribery scheme that took place in Brazil. As part of coordinated resolutions with the SEC, the U.S. Department of Justice, the Brazil Controladoria-General da Uniᾶo (CGU)/Advocacia-Geral da Uniᾶo (AGU) and the Ministério Publico Federal (MPF), and the United Kingdom Serious Fraud Office (SFO), the company has agreed to pay more than $43 million related to this scheme, including more than $10.1 million to settle the SEC's charges. The SEC's order finds that Foster Wheeler, a company that provided project, engineering, and technical services to energy and industrial markets worldwide, engaged in a scheme to obtain an oil and gas engineering and design contract from the Brazilian state-owned oil company, Petroleo Brasileiro S.A. (Petrobras), known as the UFN-IV project. According to the order, from 2012 through 2014, Foster Wheeler's UK subsidiary, Foster Wheeler Energy Limited (FWEL), made improper payments to Brazilian officials in connection with its efforts to win the contract and establish a business presence in Brazil. The bribes were paid through third party agents, including one agent who failed Foster Wheeler's due diligence process, but was allowed to continue working "unofficially" on the UFN-IV project. According to the order, Foster Wheeler paid approximately $1.1 million in bribes in connection with obtaining the contract. "Continuing to use an agent who presented a significant corruption risk so that Foster Wheeler could expand its business and win a contract in Brazil demonstrates a fundamental flaw in the corporate compliance program," said Tracy Price, Deputy Chief of the SEC Enforcement Division's FCPA Unit. "The potential for a new market cannot be a siren's song that overwhelms good corporate governance," said Charles Cain, Chief of the SEC Enforcement Division's FCPA Unit. Foster Wheeler, which is currently owned by John Wood Group PLC, consented to the SEC's cease-and-desist order finding that it violated the anti-bribery, books and records, and internal accounting controls provisions of the FCPA and agreed to pay $22.7 million in disgorgement and prejudgment interest. The SEC's order provides for offsets for up to $9.1 million of any disgorgement paid to the CGU/AGU and the MPF in Brazil and up to $3.5 million of any disgorgement paid to the SFO in the United Kingdom. Therefore, the company's minimum payment to the SEC would be approximately $10.1 million. The SEC's investigation was conducted by Ilana Sultan and Denise Hansberry and supervised by Tracy L. Price. The SEC appreciates the assistance of the CGU/AGU and the MPF in Brazil and the SFO in the United Kingdom.