Deferred Prosecution Agreement with PBSJ Corporation
PBSJ Corporation violated securities laws by bribing Qatari officials through a shell company to secure $60+ million in contracts, falsifying books and records, and failing to maintain internal controls, resulting in a deferred prosecution agreement with the SEC requiring $3.4 million in payments and enhanced compliance measures until January 22, 2017.
PBSJ Corporation, headquartered in Florida and later acquired by Atkins, entered into a deferred prosecution agreement with the SEC for violating Sections 30A, 13(b)(2)(A), and 13(b)(2)(B) of the Securities Exchange Act by bribing Qatari government officials to secure multi-million-dollar infrastructure contracts in Qatar and Morocco. The company falsified its books and records, disguised bribes as legitimate expenses, and failed to maintain adequate internal accounting controls, with approximately $1.39 million in illicit payments traced to a shell company owned by a foreign official. As part of the settlement, PBSJ agreed to pay $3.4 million in disgorgement, interest, and civil penalties, implement enhanced compliance measures including mandatory FCPA training and improved internal controls, and fully cooperate with ongoing investigations during a two-year deferred period ending January 22, 2017.
PBSJ Corporation, a Florida-based firm whose stock was registered with the SEC, engaged in a bribery scheme between 2009 and 2010 to secure over $60 million in infrastructure contracts in Qatar and Morocco by offering payments and benefits to Qatari government officials through a shell company owned by a foreign official. The company falsified its books and records to disguise these illicit payments as legitimate project costs, while failing to maintain internal accounting controls required under the Securities Exchange Act, violating Sections 30A, 13(b)(2)(A), and 13(b)(2)(B). The scheme was orchestrated by executive Hatoum, who ignored internal red flags, and was uncovered after PBSJ self-reported the misconduct and terminated the responsible executive. In January 2015, PBSJ entered into a deferred prosecution agreement with the SEC, agreeing to pay $3.4 million in disgorgement, interest, and civil penalties, and to implement comprehensive compliance reforms including mandatory FCPA training, Code of Conduct certifications, and strengthened internal controls. The agreement, effective until January 22, 2017, tolled all statutes of limitations during that period and required full, ongoing cooperation with the SEC and other regulators in related investigations. PBSJ also agreed not to seek tax deductions or indemnification for the penalties, and the SEC committed to not pursue enforcement actions if all terms were met, though the agreement did not shield the company from other regulators or unrelated violations. The company’s acquisition by Atkins in October 2010 preceded the agreement, but its obligations under the DPA extended to Atkins and its subsidiaries as Related Entities.
Extracted insights
- $35.60M $35.6 million $10M–$100M
- $25.00M $25 million $10M–$100M
- $3.60M $3.6 million $1M–$10M
- $3.41M $3,407,875 $1M–$10M
- $2.89M $2,892,504 $1M–$10M
- $1.39M $1,390,000 $1M–$10M
- $750K $750,000 $100K–$1M
- $640K $640,000 $100K–$1M
- $375K $375,000 $100K–$1M
- $140K $140,371 $100K–$1M
- company the pbsj corporation
- company ws atkins plc
- The PBSJ Corporation Violated Sections 30A, 13(b)(2)(A), and 13(b)(2)(B) of the Securities Exchange Act of 1934
- WS Atkins plc Acquired The PBSJ Corporation
- The Respondent Filed Form 15 with the Commission
- The Respondent and Related Entities Agree to cooperate Fully and truthfully in the Investigation and related proceedings
- The Respondent Understands and agrees Provisions are in full force and effect from January 22, 2015 to January 22, 2017
UNITED STATES OF AMERICA
SECURITIES AND EXCHANGE COMMISSION
DEFERRED PROSECUTION AGREEMENT
1. In connection with an investigation, the Division ofEnforcement ("Division") of
the United States Securities and Exchange Commission ("Commission") alleges The
PBSJ Corporation ("Respondent"), on or about 2009, violated Sections 30A, 13(b)(2)(A),
and 13(b)(2)(B)
of the Securities Exchange Act of 1934 ("Exchange Act") by making
offers and promises
ofpayment and other benefits to certain Qatari government officials
in order to secure two multi-million dollar development contracts in Qatar and Morocco
and by failing to keep accurate books and records relating to those transactions, and by
failing to maintain internal accounting controls to ensure the transactions were recorded
accurately and that financial statements were prepared in conformity with generally
accepted accounting principles ("Investigation"). Prior to a public enforcement action
being brought by the Commission against it, Respondent has offered to accept
responsibility for its conduct and to not contest or contradict the factual statements
contained in Paragraph 7 in any future Commission enforcement action in the event it
breaches this Agreement. Accordingly, the Commission and the Respondent enter into
this deferred prosecution agreement ("Agreement") on the following terms and
conditions:
TERM
2. The Respondent was a corporation organized and operating under the laws
of
Florida and headquartered in Tampa. Throughout the relevant period, Respondent's
common stock was registered pursuant to Section 12(g)
of the Exchange Act and
Respondent filed annual and quarterly reports
as required under Section 13(a) of the
Exchange Act and Rules 13a-1 and 13a-13 thereunder. On October
1, 2010, WS Atkins
plc ("Atkins") acquired Respondent. That same day, Respondent filed a Form
15 with
the Commission, which terminated all offerings
of its securities and removed all
remaining securities from registration under Section 12(g).
3. The Respondent understands and agrees that the provisions of this Agreement are
in full force and effect from January 22, 2015 to January 22, 2017 ("Deferred Period"),
unless expressly stated otherwise.
COOPERATION
4. The Respondent, its successors, its parent, Atkins, and all Atkins subsidiaries
(collectively "Related Entities") agree to cooperate fully and truthfully in the
Investigation and any other related enforcement litigation or proceeding to which the
Commission is a party (the
" Proceedings"), regardless
ofthe time period in which the
cooperation is required. In addition, the Respondent and Related Entities agree
to
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cooperate fully and truthfully, when directed by the Division's staff, in an official
investigation or proceeding by any federal, state, or self-regulatory organization (" Other
Proceedings"). The full, truthful, and continuing cooperation
of the Respondent and
Related Entities shall include, but not be limited to:
a. producing, in a responsive and prompt manner, all non-privileged
documents, information, and other materials to the Commission as requested by the
Division's staff, wherever located, in the possession, custody, or control
of the
Respondent or any
of its Related Entities;
b. using its best efforts to secure the full, truthful, and continuing
cooperation, as defined in Paragraph 5,
ofcurrent and former directors, officers,
employees and agents, including making these persons available, when requested to
do so
by the Division's staff, at its expense, for interviews and the provision oftestimony in the
investigation, trial and other judicial proceedings in connection with the Proceedings or
Other Proceedings; and
c. entering into tolling agreements, when requested to do so by the
Division's staff, during the period
of cooperation.
5. The full, truthful, and continuing cooperation of each person described in
Paragraph 4 above will be subject to the procedures and protections
of this paragraph,
and shall include, but not be limited to:
a. producing all non-privileged documents and other materials as requested
by the Division's staff;
b. appearing for interviews, at such times and places, as requested by the
Division's staff;
c. responding to all inquiries, when requested to do so by the Division's
staff, in connection with the Proceedings or Other Proceedings; and
d. testifying at trial and other judicial proceedings, when requested to do so
by the Division's staff, in connection with the Proceedings or Other Proceedings.
STATUTE OF LIMITATIONS
6. The Respondent agrees that the running of any statute of limitations applicable to
any action or proceeding against it authorized, instituted, or brought by or on behalf of
the Commission arising out ofthe Investigation ("Proceeding"), including any sanctions
or relief that may be imposed therein, is tolled and suspended during the Deferred Period.
a. The Respondent and any ofits attorneys or agents shall not include the
Deferred Period in the calculation
ofthe running of any statute of limitations or for any
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other time-related defense applicable to the Proceeding, including any sanctions or relief
that may be imposed therein, in asserting or relying upon any such time-related defense.
b. This agreement shall not affect any applicable statute
of limitations
defense or any other time-related defense that may be available to Respondent before the
commencement
ofthe Deferred Period or be construed to revive a Proceeding that may
be barred by any applicable statute
of limitations or any other time-related defense before
the commencement
ofthe Deferred Period.
c. The running of any statute of limitations applicable to the Proceeding shall
commence again after the end
ofthe Deferred Period, unless there is an extension ofthe
Deferred Period executed in writing
by or on behalf ofthe parties hereto.
d. This agreement shall not be construed as an admission by the Commission
relating to the applicability
of any statute of limitations to the Proceeding, including any
sanctions or relief that may be imposed therein, or to the length
of any limitations period
that may appl
y, or to the applicability ofany other time-related defense.
STATEMENT OF FACTS
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7. If this case had gone to trial, the Commission would have presented evidence
sufficient to prove the facts set forth in Exhibit A.
PROHIBITIONS
8. During the Deferred Period, the Respondent understands and agrees to comply
with the following prohibitions:
a. to refrain from violating the federal and state securities laws;
b. to refrain from violating the applicable rules promulgated by any self-
regulatory organization;
c. to refrain from seeking or accepting a U.S. federal or state tax credit or
deduction for any civil monetary penalty paid pursuant to this Agreement; and
d. to refrain from seeking or accepting reimbursement or indemnification
from any source, including, but not limited to, payment made pursuant to an insurance
policy or employment contract, with regard to any civil monetary penalty paid pursuant
to this Agreement.
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The facts set forth in thi s section are made pursuant to settlement negotiations as sociated with the
violations alleged by the Division in Paragraph 1 ofthi s Agreement and are not binding in any other legal
proceeding or on any other person
or entity.
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UNDERTAKINGS
9. During the Deferred Period, the Respondent understands and agrees to perform
the following undertakings:
a. to provide written notification to the Division, within fourteen days, if it
(1) has been questioned, charged, or convicted
of an offense by any U.S. federal, state, or
local law enforcement organization, regulatory agency, or self-regulatory organization; or
(2) has been questioned, charged, or convicted
of an offense by any foreign law
enforcement organization or regulatory agency relating to any anti-bribery or securities
law, regulation, or rule;
b. to provide written notification to the Division, within fourteen days, if it
has been questioned, a formal or informal complaint has been made against it, or
disciplinary action has been taken against it by any U.S. federal, state, or local law
enforcement organization, regulatory agency, or self-regulatory organization relating to
any anti-bribery
or securities law, regulation or rule;
c. to pay disgorgement obtained or retained as a result of the violations
alleged in Paragraph 1 in the amount
of $2,892,504 together with prejudgment interest
thereon in the amount of$140,371, and pay a civil penalty in the amount of$375,000 for
a total
of $3,407,875 within 30 days of approval ofthe Agreement by the Commission.
Respondent may transmit payment electronically to the Commission, which will provide
detailed ACH transfer/Fedwire instructions upon request. Payment may also be made
directly from a bank account via Pay.gov through the SEC website at
http://www.sec.gov/about/offices/ofm.htm. Respondent may also pay by certified check,
bank cashier's check, or United States postal money order payable to the Securities and
Exchange Commission, which shall be delivered or mailed to :
Enterprise Services Center
Accounts Receivable Branch
6500 South MacArthur Boulevard
Oklahoma City, OK 73169
and shall be accompanied by a letter identifying the Respondent and specifying that the
payment is made pursuant to a deferred prosecution agreement entered into with the
Commission on January 22, 2015, and send an additional copy
of the letter and check in
accordance with the service requirements
of Paragraph 12. By making this payment,
Respondent relinquishes all legal and equitable right, title , and interest in such funds and
no part
of the funds shall be returned to the Respondent. The Commission shall send the
funds paid pursuant to this Agreement to the United States Treasury;
d. to provide the Division with a written certification of compliance with the
prohibitions and undertakings in this Agreement between forty-five and sixty days before
the end of the Deferred Period;
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e. to review annually and update, as appropriate, the Code of Conduct on an
annual basis beginning on January 22, 2016;
f. to require that each director, officer, and employee sign a certification of
compliance with the Code of Conduct on an annual basis beginning on January 22, 2016;
g. to conduct effective training regarding anticorruption and compliance with
the Foreign Corrupt Practices Act ("FCPA") for (1) all current officers and managers; (2)
all employees working in Finance, Accounting, Internal Audit, Sales, and Government
Relations; (3) all other employees working in positions Respondent deems to involve
activities impacted by Respondent's policies regarding anticorruption and compliance
with the FCPA, on or before December 31,2014, and (4) all such future employees
within 90 days
oftheir affiliation with Respondent;
h. to maintain and enforce comprehensive procedures designed to address
and prevent violations
of the federal securities laws, including but not limited to
compliance with the FCP A and other applicable anticorruption laws on or before January
22,2016;and
i. to identify and implement improved internal controls by, as necessary,
adopting new or modifying existing internal controls, policies, and procedures designed
to ensure the making and keeping
of books, records, and accounts, which, in reasonable
detail, accurately and fairly reflect the transactions and dispositions
ofthe assets ofthe
Respondent on or before January 22, 2016.
PUBLIC STATEMENTS
10. After the Deferred Period begins, January 22, 2015, the Respondent agrees not to
take any action or to make or permit any public statement through present or future
attorneys, employees, agents, or other persons authorized to speak for it, except in legal
proceedings in which the Commission is not a party in litigation or otherwise, denying,
directly or indirectly, any aspect
ofthis Agreement or creating the impression that the
statements in Paragraph 7
of this Agreement are without factual basis. This paragraph is
not intended to apply to any statement made by an individual in the course
ofany
criminal, civil, or regulatory proceeding initiated by the government or self-regulatory
organization against such individual, unless such individual is speaking on behalf
of the
Respondent.
If it is determined by the Commission that a public statement by the
Respondent or any related person contradicts in whole or in part this Agreement, at its
sole discretion, the Commission may bring an enforcement action in accordance with
Paragraphs
13 through 16.
11. Prior to issuing a press release concerning this Agreement, the Respondent agrees
to have the text
of the release approved by the staff of the Division.
5
SERVICE
12. The Respondent agrees to serve by hand delivery or by next-day mail all written
notices and correspondence required by or related to this Agreement to Tracy
L. Price,
Assistant Director, Division
ofEnforcement, U.S. Securities and Exchange Commission,
100 F Street, N.E., Mail Stop 5631, Washington, D.C. 20549, (202)
55 1-4490, unless
otherwise directed in writing by the staff
ofthe Division.
VIOLATION OF AGREEMENT
13. The Respondent understands and agrees that it shall be a violation of this
Agreement
if it knowingly provides false or misleading information or materials in
connection with the Proceedings or Other Proceedings. In the event of such misconduct,
the Division will advise the Commission
ofthe Respondent's misconduct and may make
a criminal referral for providing false information (18 U.S.C . § 1001), contempt (18
U.S.C.
§§ 401-402) and/or obstructing justice (18 U.S.C. § 1503 et seq.).
14. The Respondent understands and agrees that it shall be a violation ofthis
agreement if it violates the federal securities laws after entering into this agreement. It is
further understood and agreed that should the Division determine that it has failed to
comply with any term or condition
of this Agreement, the Division will notify the
Respondent or its counsel
of the fact and provide an opportunity for the Respondent to
make a submission consistent with the procedures set forth in the Securities Act
of 1933
Release No. 5310. Under these circumstances, the Division may, in its sole discretion
and not subject to judicial review, recommend to the Commission an enforcement action
against the Respondent for any securities law violations, including, but not limited to, the
substantive offenses relating to the Investigation. Nothing in this agreement limits the
Division's discretion to recommend to the Commission an enforcement action against the
Respondent for future violations
ofthe federal securities laws, without notice, to protect
the public interest.
15. The Respondent understands and agrees that in any future enforcement action
resulting from its violation
of the Agreement, any documents , statements, information,
testimony, or evidence provided by it during the Proceedings or Other Proceedings, and
any leads derived therefrom, may be used against it in future legal proceedings.
16. In the event it breaches this Agreement, the Respondent agrees not to dispute,
contest, or contradict the factual statements in
Paragraph 7 above as admissions pursuant
to Federal Rule
of Evidence 801 ( d)(2), or their admissibility, in any future Commission
action against it.
COMPLIANCE WITH AGREEMENT
17. Subject to the full, truthful, and continuing cooperation ofthe Respondent, as
described in Paragraphs 4 and 5, and compliance by Respondent with all obligations,
6
prohibitions and undertakings in the Agreement during the Deferred Period, the
Commission agrees not to bring any enforcement action or proceeding against the
Respondent arising from the Investigation, after the conclusion
of the Deferred Period.
18. The Respondent understands and agrees that this Agreement does not bind other
federal, state or self-regulatory organizations, but the Commission may, at its discretion,
issue a letter to these organizations detailing the fact, manner, and extent
of its
cooperation during the Proceedings or Other Proceedings, upon the written request
of the
Respondent.
19. The Respondent understands and agrees that if it sells, merges, or transfers all or
substantially all
of its business operations as they exist as ofthe date of this Agreement,
whether such a sale is structured as a stock or asset sale, merger, or transfer during the
Deferred Period, it shall include in any contract for sale, merger, or transfer a provision
binding the purchaser/successor in interest to the obligations set forth in this Agreement.
20. The Respondent understands and agrees that the Agreement only provides
protection against enforcement actions arising from the Investigation and does not relate
to any other violations or any individual or entity other than the Respondent.
VOLUNTARY AGREEMENT
21. The Respondent
's decision to enter into this Agreement is freely and voluntarily
made and is not the result
of force, threats, assurances, promises, or representations other
than those contained in this Agreement.
22. The Respondent has read and understands this Agreement. Furthermore, the
Respondent has reviewed all legal and factual aspects
ofthis matter with its attorney and
is fully satisfied with its attorney's legal representation. The Respondent has thoroughly
reviewed this Agreement with its attorney and has received satisfactory explanations
concerning each paragraph
of the Agreement. After conferring with its attorney and
considering all available alternatives, the Respondent has made a knowing decision to
enter into the Agreement.
23. The Respondent represents that its Board
of Directors has duly authorized, in the
resolution attached as Exhibit B , the execution and delivery
of this Agreement, and that
the person signing this Agreement has authority to bind the Respondent.
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ENTIRETY OF AGREEMENT
24. This Agreement constitutes the entire agreement between the Commission and the
Respondent, and supersedes all prior understandings,
if any, whether oral or written,
relating to the subject matter herein.
25. This Agreement cannot
be modified except in writing, signed by the Respondent
and a representative
of the Commission.
2
6. In the event an ambiguity or a question ofintent or interpretation arises, this
Agreement shall be construed
as if drafted jointly by the parties hereto, and no
presumption or burden
ofproof shall arise favoring or disfavoring the Commission or the
Respondent
by virtue of the authorship of any ofthe provisions of the Agreement.
The signatories below acknowledge acceptance
of the foregoing terms and conditions.
RESPONDENT
ll I\IOV6/J\e£X ~I 4
Date C. Ernest Edgar IV, E q.
The Atkins North America
Holdings Corporation
Senior Vice President and
General Counsel
4030 W. Boy Scout Boulevard
Tampa, FL 33607
(813)
281 -3626
On
1\.lov'eM~a , ~, 20J!, c._ . BJJesr GD&~ 11.-, a person known to me, personally
appeared before
me and acknowledged executing the foregoing agreement with full
authority to do
so on behalf of rm:: ,+il~llll~ f\ioWt AMt1..1c.~ ..abrAI~RESPONDENT] as its
(lEklt:-"1-M. t.OI.tAJ5iL [TITLE] {and pursuant to Exhibit B the attached Resolution of
the Board of Directors} . UJUounoiJ
~d&tt_
-
Notary Public
State:
Commission number:
Commission expiration:
8
RESPONDENT'S COUNSEL
Approved as to form:
I!A4-/Li
Date
?· ap, sq.
Greenb g Traurig, P .A.
333 SE
2nd Avenue, Suite 4400
Miami, Florida 33131
(305) 579-0541
Date
Edward
J. Fuhr, Esq.
Hunton & Williams, LLP
Riverfront Plaza, East Tower
951 East Byrd Street
Richmond, Virginia 23219-4074
(804) 788-8200
SECURITIES AND EXCHANGE COMMISSION
DIVISION OF ENFORCEMENT
)
• Date
Kara Novaco Brockmeyer
FCPA Unit Chief
9
RESPONDENT'S COUNSEL
Approved as to form:
Date Mark P. Schnapp, Esq.
Greenberg Traurig, P.A.
333 SE
2"d Avenue, Suite 4400
Miami, Florida 33131
(305) 579-0541
Date
Edward
J. Fuhr, Esq.
Hunton & Williams, LLP
Riverfront Plaza, East Tower
951 East Byrd Street
Richmond, Virginia 23219-4074
(804) 788-8200
SECURITIES AND EXCHANGE COMMISSION
DIVISION OF ENFORCEMENT
Date Kara Novaco Brockmeyer
FCP A Unit
Chief
9
EXHIBIT A
STATEMENT OF FACTS
1
If this case had gone to trial, the Commission would have presented evidence sufficient to
establish the following facts:
The PBSJ Corporation
1. The PBSJ Corporation ("PBSJ") was an employee-owned engineering and construction
firm incorporated in Florida and headquartered in Tampa. Through the relevant period,
PBSJ's common stock was registered pursuant to Section 12(g)
of the Securities
Exchange Act
of 1934 ("Exchange Act") and PBSJ filed annual and quarterly reports as
required under Section 13(a)
ofthe Exchange Act and Rules thereunder.
2
2. PBS&J International, Inc. ("PBS&J Int'l") was a wholly-owned subsidiary ofPBSJ
headquartered and incorporated in Florida. PBS&J Int'l was a provider of engineering,
architectural and planning services in international markets, including the Middle East.
PBS&J Int'l currently is a subsidiary
ofAtkins.
3. The former President ofPBS&J lnt'l, Walid Hatoum ("Hatoum"), is a United States
citizen who initially worked for PBSJ
as an engineer from 1986 until 1990. In February
2009, Hatoum was rehired to join PBS&J Int'l as its Director .oflnternational Marketing,
even though his prior employment file at PBSJ had been marked "Ineligible for Rehire ."
Although Hatoum did not formally join PBS&J Int'l until April2009, he assisted PBS&J
lnt'l with identifying projects as early as November 2008. Hatoum was promoted to
President
ofPBS&J Int'l in mid-June 2009, and became an officer ofPBSJ at the same
time.
4. During 2009, PBS&J Int'l won two multi-million dollar development contracts. One
contract was for work in Qatar and the other was for work in Morocco. Both were
competitively solicited and approved by the Qatari Diar Real Estate Investment Company
The facts set forth in Exhibit A are made pursuant to settlement negotiations associated with the violations
alleged by the Division in Paragraph 1
ofthis Deferred Prosecution Agreement and are not binding against PBSJ or
its directors, officers, or employees, or any other person or entity in any other legal proceeding.
On October
1, 2010, after the conduct at issue, WS Atkins pic ("Atkins"), a public limited engineering and
design company based in the United Kingdom and organized under the laws ofEngland and Wales, acquired PBSJ
and all
of its common stock. Atkins is traded on the London Stock Exchange under the symbol A TK.L. That day,
PBSJ filed a Form
15 with the Commission, which terminated all offerings ofits securities and removed all
remaining securities from registration under Section 12(g). Post-acquisition, PBSJ became an indirect wholly
owned subsidiary
of Atkins. On April 1, 2011, PBSJ changed its name to The Atkins North America Holdings
Corporation.
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("Qatari Diar"). Qatari Diar was established by the Qatari government to coordinate the
country's real estate development.
5. PBSJ and PBS&J Int'l, through Hatoum, offered bribes to the then-Director of
International Projects at Qatari Diar ("Foreign Official"), to secure Qatari government
contracts by planning to funnel funds to a local company the Foreign Official owned and
,
controlled ("Local Partner"). Foreign Official, a former business colleague
ofHatoum's
at another U.S. engineering firm, worked for Qatari Diar throughout 2009, until his
resignation from Qatari Diar on December 21, 2009. Prior to joining PBSJ, Hatoum and
Foreign Official discussed directing business in the Middle East to Local Partner.
6. In return, Foreign Official provided PBS&J Int'l with access to confidential sealed-bid
information and pricing information on the two government contracts that helped PBS&J
Int'l tender bids that had a greater likelihood
of being awarded, including a government
contract for which the Foreign Official was the project manager.
Offers and Promises Made to Foreign Official
LRT Project in Qatar
7. In November and December 2008, Hatoum began discussing potential employment with
PBSJ. Even before he received a formal employment contract, Hatoum met with PBS&J
Int'l to discuss opportunities to grow PBS&J Int'l business in the Middle East. Hatoum
discussed projects involving Qatari Diar, including a light rail transit project in Qatar
("the LRT Project").
8. In January 2009, Hatoum arranged for Foreign Official's brother, through Local Partner,
to introduce PBS&J Int'l to Qatari Diar senior executives involved in the LRT Project.
Soon after that meeting, PBS&J Int
'l decided to bid on the LRT Project. PBS&J Int'l
added Foreign Official's company, Local Partner, on its proposal team as a subcontractor
to handle local operations such as hiring local labor, as well as complying with bonding
and insurance requirements. In return, Hatoum and PBS&J Int
'l agreed to pay the
Foreign Official, through Local Partner, 40%
of the profits realized from any LRT
Project contract as well as reimburse its direct costs. The remaining profits were to be
split between
PBS&J Int'l (40%) and another U.S.-based subcontractor (20%), which
would perform all of the planning and engineering services for the LRT project.
9. At that time, Hatoum was the only person at PBS&J Int'l who had any knowledge about
Foreign Official's ownership interest in Local Partner. Had PBSJ conducted meaningful
due diligence at that time, it would have discovered Foreign Official's dual role as both
government official and third-party owner/operator
ofLocal Partner.
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10. During the bidding process, Foreign Official gave confidential sealed bid information to
PBS&J Int'l to assist it in winning the LRT Project in return for promised payments.
Foreign Official also made strategic and technical decisions on many aspects
of the LRT
Project that favored PBS&J Int'l with Hatoum's knowledge.
11. Foreign Official used a Local Partner alias to communicate that information to Hatoum
and other PBSJ and PBS&J Int'l employees while disguising his involvement on multiple
conference calls and in dozens
of emails to the United States. Hatoum was aware that
Foreign Official was using the alias in communications with PBSJ employees, officers,
and directors and with Qatari Diar. Hatoum flew to the Middle East to meet with Qatari
Diar officials, including Foreign Official, to discuss
PBS&J Int'l' s qualifications for the
LRT Project. At the meeting, neither Foreign Official nor Hatoum informed Qatari Diar
that Foreign Official was working for Local Partner and providing confidential
information and other assistance to help PBS&J Int'l win the contracts.
12. Following its initial submission, PBS&J Int'l revised its bid, based on information and
guidance provided by the Foreign Official, to best position itself to win the LRT Project
and to withstand possible challenges from competitors. On or about August 3, 2009,
Qatari Diar awarded the LRT Project contract worth approximately $35.6 million to
PBS&J Int'l.
13. After the award, PBS&J Int'l opened a joint account with Local Partner that was
accessible to Foreign Official's wife. PBS&J Int'l also authorized a four-year letter
of
credit relating to a bank guarantee in Qatar. The letter of credit was a precondition for
receipt
ofthe first contract payment by Qatari Diar to PBS&J Int'l, an up front, 10%
(approximately $3.6 million) payment, which was deposited into the joint account.
14. Once the award was received, Hatoum offered Foreign Official an "agency fee" to Local
Partner for 1.8%
ofthe LRT Project contract amount (equivalent to approximately
$640,000). Additionally, PBS&J Int'l agreed to pay
half of the salary of Foreign
Official's wife, who worked for Local Partner.
Design Contract in Morocco
15. In addition to the LRT Project, Qatari Diar opened a Morocco hotel resort development
("Morocco Project") for competitive bid. On August 7, 2009, PBS&J Int'l emailed its
Statement
of Qualifications for the design contract to Foreign Official, the Qatari Diar
project manager for the Morocco Project.
16. In October 2009, Hatoum offered payment to Foreign Official in the form of an agency
fee to Local Partner to secure the Morocco Project. The Morocco Project was worth
3
approximately $25 million to PBS&J Int'l, of which the Foreign Official was offered an
agency fee
of3% ofthe contract amount, which equates to approximately $750,000.
Hatoum instructed a PBS&J Int'l employee to hide the agency fee within the company's
bid proposal by inflating other components
of the offer for the Morocco Project.
17. Foreign Official attended meetings with PBS&J Int'l employees to discuss the project but
neither Foreign Official nor Hatoum told the employees that he was working for Local
Partner. At the same time, Foreign Official, using his Local Partner alias, reviewed and
made changes to PBS&J
Int'l' s original bid offer via email and phone. He also made key
technical and strategic proposal decisions throughout the bidding process and instructed
PBS&J Int' l to lower its offer to a specific dollar amount. By doing so, he ensured
PBS&J
Int'l's final bid had a greater likelihood of being approved by Qatari Diar. On or
around October 19, 2009, Qatari Diar informed PBS&J Int'l that it was awarded the
Morocco Project.
Red Flags
18. PBSJ and PBS&J Int'l officers and employees ignored multiple red flags that should have
led them to uncover the payment scheme. For example, PBS&J Int'l and PBSJ
employees knew that Local Partner was providing them with confidential sealed bid
information. Hatoum also informed the employees that he was obtaining information
from someone that Hatoum described as a "good friend" and "top executive" at Qatari
Diar. Before PBS&J Int'l submitted its bid for the Morocco Project, a PBS&J Int'l
officer learned that the husband
of one of the Local Partner employees was a government
official working on the Morocco Project. The PBSJ Int'l officer learned
of Foreign
Official's role while attending dinner with Hatoum, Foreign Official and the Foreign
Official's wife. In addition, a PBSJ employee knew that "agency fees" to Local Partner
were disguised as legitimate costs within the Morocco Project bid.
Discovery
ofthe Payment Scheme
19. Shortly after PBSJ Int'l was awarded the Morocco Project contract, PBSJ' s former Chief
Operating Officer commented to
PBSJ's then-general counsel that PBS&J Int'l was
successful in winning two contracts in the Middle East within a fairly short period
of
time. PBSJ's then-general counsel asked Hatoum how he was able to win the LRT and
Morocco Project contracts over companies with far more international experience.
Hatoum told
PBSJ's then-general counsel PBSJ offered "agency fees" in order to win the
projects and, when asked, admitted there "would be a problem"
ifthe agency fees were
not paid. PBSJ' s then-general counsel immediately launched an investigation
ofthis
issue .
4
20. Three weeks later, in November 2009, a Qatari government official informed Hatoum
and the then-President
ofPBSJ that Qatari Diar had discovered Foreign Official's
involvement in Local Partner and was rescinding PBS&J
Int'l's contract for the Morocco
Project. Hatoum then secretly made an offer
ofemployment to a second Qatari foreign .
official in return for influencing Qatari Diar to reinstate the contract. However, Qatari
Diar refused to reinstate the contract and did not provide PBS&J Int'l any proceeds for
the project. PBSJ suspended Hatoum in December 2009. Hatoum also began deleting
emails and other records.
2
1. PBS&J Int'l and Qatari Diar negotiated a termination ofthe LRT Project contract
effective December 31,2009. In January 2010, Qatari Diar entered into a bridge contract
with PBS&J Int'l to continue work on the LRT Project (the "Bridge Contract") until a
replacement company could be found. Ultimately, the period
ofperformance on the
Bridge Contract was
16 'h months . PBS&J Int'l earned $2,892,504 in profits on the
Bridge Contract.
22. PBSJ and Qatari Diar caught Hatoum's scheme before any
of the offered and authorized
amounts were paid.
Failure
to Maintain Adequate Internal Controls
23 . PBSJ failed to devise and maintain an adequate system ofinternal accounting controls.
The violations involved conduct orchestrated by a high level manager at PBS&J Int
'l and
numerous red flags were overlooked by PBSJ and PBS&J Int'l managers and employees.
Employees were aware that they were receiving confidential information in a sealed-bid
process from a foreign official and that their bids were inflated to conceal payments to
Local Partner. Over a million dollars in payments were offered and authorized to Foreign
Official through Local Partner without a system
ofinternal accounting controls to
identify and detect the improper transactions. PBS&J Int'l agreed to pay Local Partner
40%
ofthe LRT Project profits without subjecting Local Partner or its employees to any
meaningful due diligence. PBS&J Int'l did not request a due diligence questionnaire
from Local Partner before it initiated its investigation into the matter, and asked no
questions about Local Partner's purported financial statements, work experience, ability
to perform the work it was supposed to do under the contract, external auditors, or
owners, despite knowing that a Local Partner employee was married to a government
official at Qatari Diar. In fact, during the period, PBSJ considered but declined adopting
due diligence controls over its contractors and joint venture partners.
24. As a result, PBS&J Int'l, through Hatoum, offered and authorized bribes to Foreign
Official through Local Partner totaling approximately
$1,390,000 to secure the LRT and
5
Morocco Projects, plus a portion ofany profits Local Partner realized from the LRT
Project and partial salary to Foreign Official
's wife.
25. Although PBSJ offered FCPA training at PBSJ and PBS&J Int'l, the company did not
ensure that its employees take the training prior to working on international matters. As a
result, key PBS&J Int'l personnel on the LRT and Morocco Projects received little,
if
any, FCP A training during the relevant period. Hatoum received annual FCP A training
from his previous employer. Hatoum was offered FCPA training by PBSJ on his first day
of official employment in April2009, but did not take it. Hatoum did not receive training
from PBSJ until after Qatari Diar cancelled the Morocco Project in November 2009.
Failure to Maintain Books and Records
26. PBSJ, directly and through PBS&J Int'l, failed to make and keep books, records, and
accounts which accurately and fairly reflected PBS&J
Int'l's transactions with Local
Partner intended for Foreign Official. Some
of the payments offered and authorized to
Foreign Official were concealed within other, legitimate categories
ofcosts within bids,
while others were improperly described in the books and records as legitimate transaction
cost
s. PBSJ failed to accurately disclose in its books and records that the joint account
entered into with Local Partner would benefit Foreign Official.
Self-Report, Remedial Measures and Cooperation
27. PBSJ conducted an internal investigation. PBSJ self-reported its preliminary findings
of
the conduct to staff ofthe Division ofEnforcement ("Division") and the Department of
Justice ("DOJ").
28. PBSJ also took immediate steps to end the misconduct. PBSJ suspended Hatoum in
December 2009 and later reprimanded four other employees that missed red flags that
should have alerted them to the illegal activity. PBSJ also withdrew all proposals in the
Middle East initiated during Hatoum's tenure with PBS&J Int'l. PBSJ reviewed its pre
existing compliance program and revised and enhanced its compliance program,
including, in part, adoption of: (1) a detailed due diligence questionnaire for contractors,
sponsors, and agents; (2) an enhanced
FCP A compliance program with mandatory annual
training for employees and third-party agents; (3) an international compliance oversight
committee at the corporate level; and (4) an annual
FCPA compliance audit.
6
29. PBSJ ultimately provided substantial cooperation to the staff of the Division, including:
voluntarily producing documents and disclosing information to the staff; voluntarily
making witnesses available for interviews; and allowing its then-general counsel to
interview with staff; and providing factual chronologies, timelines, internal interview
summaries, and full forensic images
ofdata.
7
EXHIBITB
UNANIMOUS WRITTEN CONSENT
OF
THE BOARD OF DIRECTORS
OF
THE ATKINS NORTH AMERICA HOLDINGS CORPORATION
November 19,2014
The undersigned, being all
of the members of the Board of Directors (the "Board") of
The Atkins North America Holdings Corporation, formerly known as The PBSJ Corporation, a
Florida corporation (the "Corporation"), pursuant to the provisions
of the Florida Business
Corporation Act,
do hereby waive all formal requirements, including the necessity of holding a
formal meeting, and any requirement that notice
of such meeting be given and do hereby agree
that when the undersigned have signed this consent (the "Consent"), the resolutions set forth
below shall be deemed to have been adopted to the same extent and to have the same force and
effect as if adopted at a formal meeting
of the Board of the Corporation duly called and held for
the purpose
of acting upon proposals to adopt such resolutions.
WHEREAS, the Corporation, through counsel, has been engaged in discussions with the
staff
of the Securities and Exchange Commission (the "SEC") regarding its investigation into
potential civil claims relating to the Foreign Corrupt Practices Act (the "FCPA Matters") ;
WHEREAS, in order to resolve the PCP A Matters, it is proposed that the Corporation
enter into a Deferred Prosecution Agreement with the SEC (the "DPA");
WHEREAS, the Board has thoroughly reviewed the DP A;
WHEREAS, the Board has been advised by the Corporation's General Counsel of the
Corporation's rights, possible defenses to the FCPA Matters, the consequences
of entering into
the DPA, and the alternatives to entering into the DPA, and has received counsel's advice with
respect
to those matters; and
WHEREAS, the Board has determined that it is in the best interests of the Company to
enter into the DP
A;
NOW, IT IS THEREFORE,
RESOLVED,
the Corporation agrees to enter into a DP A with the SEC in substantially
the form reviewed
by the Board; and it is
FURTHER RESOLVED, the Corporation's General Counsel is authorized to execute
the DP A in substantially the same form as reviewed by the Board, with such changes as the
General Counsel may approve; and it
is
FURTHER RESOLVED, that this Consent may be executed in several counterparts and
by facsimile, electronic and or other format and all so executed shall constitute one
Consent,
shall be binding on all the parties hereto, notwithstanding that all the parties are not signatories to
the original or same counterpart and, further, that any such facsimile, electronic or other copy
of
this Consent and all signatures thereon shall be deemed an original and any person may rely
upon such copy
ofthis Consent in determining the validity ofthe actions taken hereunder.
IN WITNESS WHEREOF, the undersigned have executed this unanimous written
Consent as
ofthe date first set forth above for the purpose ofgiving consent thereto.
DIRECTORS:
~~b~--
L. Joe Boyer, Chair
Michael
M. Newton
C. Ernest Edgar IV
shall be binding on all the parties hereto, notwithstanding that all the parties are not signatories to
the original or same counterpart and, further, that any such facsimi le, electronic or other copy of
this Consent and all signatures thereon shall be deemed an original and any person may rely
upon such copy
of this Consent in determining the validity of the actions taken hereunder.
IN WITNESS WHEREOF, the undersigned have executed this unanimous written
Consent
as of the date first set forth above for the purpose of giving consent thereto.
DIRECTORS:
L.. Joe Boyer, Chair
jk.£ ~·~ UNITED STATES OF AMERICA
SECURITIES AND EXCHANGE COMMISSION
DEFERRED PROSECUTION AGREEMENT
1. In connection with an investigation, the Division of Enforcement ("Division") of
the United States Securities and Exchange Commission ("Commission") alleges The
PBSJ Corporation ("Respondent"), on or about 2009, violated Sections 30A, 13(b)(2)(A),
and 13(b)(2)(B) of the Securities Exchange Act of 1934 ("Exchange Act") by making
offers and promises ofpayment and other benefits to certain Qatari government officials
in order to secure two multi-million dollar development contracts in Qatar and Morocco
and by failing to keep accurate books and records relating to those transactions, and by
failing to maintain internal accounting controls to ensure the transactions were recorded
accurately and that financial statements were prepared in conformity with generally
accepted accounting principles ("Investigation"). Prior to a public enforcement action
being brought by the Commission against it, Respondent has offered to accept
responsibility for its conduct and to not contest or contradict the factual statements
contained in Paragraph 7 in any future Commission enforcement action in the event it
breaches this Agreement. Accordingly, the Commission and the Respondent enter into
this deferred prosecution agreement ("Agreement") on the following terms and
conditions:
TERM
2. The Respondent was a corporation organized and operating under the laws of
Florida and headquartered in Tampa. Throughout the relevant period, Respondent's
common stock was registered pursuant to Section 12(g) of the Exchange Act and
Respondent filed annual and quarterly reports as required under Section 13(a) of the
Exchange Act and Rules 13a-1 and 13a-13 thereunder. On October 1, 2010, WS Atkins
plc ("Atkins") acquired Respondent. That same day, Respondent filed a Form 15 with
the Commission, which terminated all offerings of its securities and removed all
remaining securities from registration under Section 12(g).
3. The Respondent understands and agrees that the provisions of this Agreement are
in full force and effect from January 22, 2015 to January 22, 2017 ("Deferred Period"),
unless expressly stated otherwise.
COOPERATION
4. The Respondent, its successors, its parent, Atkins, and all Atkins subsidiaries
(collectively "Related Entities") agree to cooperate fully and truthfully in the
Investigation and any other related enforcement litigation or proceeding to which the
Commission is a party (the " Proceedings"), regardless of the time period in which the
cooperation is required. In addition, the Respondent and Related Entities agree to
1
cooperate fully and truthfully, when directed by the Division's staff, in an official
investigation or proceeding by any federal, state, or self-regulatory organization (" Other
Proceedings"). The full, truthful, and continuing cooperation of the Respondent and
Related Entities shall include, but not be limited to:
a. producing, in a responsive and prompt manner, all non-privileged
documents, information, and other materials to the Commission as requested by the
Division's staff, wherever located, in the possession, custody, or control of the
Respondent or any of its Related Entities;
b. using its best efforts to secure the full, truthful, and continuing
cooperation, as defined in Paragraph 5, of current and former directors, officers,
employees and agents, including making these persons available, when requested to do so
by the Division's staff, at its expense, for interviews and the provision oftestimony in the
investigation, trial and other judicial proceedings in connection with the Proceedings or
Other Proceedings; and
c. entering into tolling agreements, when requested to do so by the
Division's staff, during the period of cooperation.
5. The full, truthful, and continuing cooperation of each person described in
Paragraph 4 above will be subject to the procedures and protections of this paragraph,
and shall include, but not be limited to:
a. producing all non-privileged documents and other materials as requested
by the Division's staff;
b. appearing for interviews, at such times and places, as requested by the
Division's staff;
c. responding to all inquiries, when requested to do so by the Division's
staff, in connection with the Proceedings or Other Proceedings; and
d. testifying at trial and other judicial proceedings, when requested to do so
by the Division's staff, in connection with the Proceedings or Other Proceedings.
STATUTE OF LIMITATIONS
6. The Respondent agrees that the running of any statute of limitations applicable to
any action or proceeding against it authorized, instituted, or brought by or on behalf of
the Commission arising out of the Investigation ("Proceeding"), including any sanctions
or relief that may be imposed therein, is tolled and suspended during the Deferred Period.
a. The Respondent and any of its attorneys or agents shall not include the
Deferred Period in the calculation of the running of any statute of limitations or for any
2
other time-related defense applicable to the Proceeding, including any sanctions or relief
that may be imposed therein, in asserting or relying upon any such time-related defense.
b. This agreement shall not affect any applicable statute of limitations
defense or any other time-related defense that may be available to Respondent before the
commencement of the Deferred Period or be construed to revive a Proceeding that may
be barred by any applicable statute of limitations or any other time-related defense before
the commencement of the Deferred Period.
c. The running of any statute of limitations applicable to the Proceeding shall
commence again after the end of the Deferred Period, unless there is an extension of the
Deferred Period executed in writing by or on behalf of the parties hereto.
d. This agreement shall not be construed as an admission by the Commission
relating to the applicability of any statute of limitations to the Proceeding, including any
sanctions or relief that may be imposed therein, or to the length of any limitations period
that may apply, or to the applicability of any other time-related defense.
STATEMENT OF FACTS 1
7. If this case had gone to trial, the Commission would have presented evidence
sufficient to prove the facts set forth in Exhibit A.
PROHIBITIONS
8. During the Deferred Period, the Respondent understands and agrees to comply
with the following prohibitions:
a. to refrain from violating the federal and state securities laws;
b. to refrain from violating the applicable rules promulgated by any self-
regulatory organization;
c. to refrain from seeking or accepting a U.S. federal or state tax credit or
deduction for any civil monetary penalty paid pursuant to this Agreement; and
d. to refrain from seeking or accepting reimbursement or indemnification
from any source, including, but not limited to, payment made pursuant to an insurance
policy or employment contract, with regard to any civil monetary penalty paid pursuant
to this Agreement.
1 The facts set forth in thi s section are made pursuant to settlement negotiations associated with the
violations alleged by the Division in Paragraph 1 of thi s Agreement and are not binding in any other legal
proceeding or on any other person or entity.
3
UNDERTAKINGS
9. During the Deferred Period, the Respondent understands and agrees to perform
the following undertakings:
a. to provide written notification to the Division, within fourteen days, if it
(1) has been questioned, charged, or convicted of an offense by any U.S. federal, state, or
local law enforcement organization, regulatory agency, or self-regulatory organization; or
(2) has been questioned, charged, or convicted of an offense by any foreign law
enforcement organization or regulatory agency relating to any anti-bribery or securities
law, regulation, or rule;
b. to provide written notification to the Division, within fourteen days, if it
has been questioned, a formal or informal complaint has been made against it, or
disciplinary action has been taken against it by any U.S. federal, state, or local law
enforcement organization, regulatory agency, or self-regulatory organization relating to
any anti-bribery or securities law, regulation or rule;
c. to pay disgorgement obtained or retained as a result of the violations
alleged in Paragraph 1 in the amount of $2,892,504 together with prejudgment interest
thereon in the amount of$140,371, and pay a civil penalty in the amount of$375,000 for
a total of $3,407,875 within 30 days of approval of the Agreement by the Commission.
Respondent may transmit payment electronically to the Commission, which will provide
detailed ACH transfer/Fedwire instructions upon request. Payment may also be made
directly from a bank account via Pay.gov through the SEC website at
http://www.sec.gov/about/offices/ofm.htm. Respondent may also pay by certified check,
bank cashier's check, or United States postal money order payable to the Securities and
Exchange Commission, which shall be delivered or mailed to :
Enterprise Services Center
Accounts Receivable Branch
6500 South MacArthur Boulevard
Oklahoma City, OK 73169
and shall be accompanied by a letter identifying the Respondent and specifying that the
payment is made pursuant to a deferred prosecution agreement entered into with the
Commission on January 22, 2015, and send an additional copy of the letter and check in
accordance with the service requirements of Paragraph 12. By making this payment,
Respondent relinquishes all legal and equitable right, title , and interest in such funds and
no part of the funds shall be returned to the Respondent. The Commission shall send the
funds paid pursuant to this Agreement to the United States Treasury;
d. to provide the Division with a written certification of compliance with the
prohibitions and undertakings in this Agreement between forty-five and sixty days before
the end of the Deferred Period;
4
http://www.sec.gov/about/offices/ofm.htm
e. to review annually and update, as appropriate, the Code of Conduct on an
annual basis beginning on January 22, 2016;
f. to require that each director, officer, and employee sign a certification of
compliance with the Code of Conduct on an annual basis beginning on January 22, 2016;
g. to conduct effective training regarding anticorruption and compliance with
the Foreign Corrupt Practices Act ("FCPA") for (1) all current officers and managers; (2)
all employees working in Finance, Accounting, Internal Audit, Sales, and Government
Relations; (3) all other employees working in positions Respondent deems to involve
activities impacted by Respondent's policies regarding anticorruption and compliance
with the FCPA, on or before December 31,2014, and (4) all such future employees
within 90 days of their affiliation with Respondent;
h. to maintain and enforce comprehensive procedures designed to address
and prevent violations of the federal securities laws, including but not limited to
compliance with the FCP A and other applicable anticorruption laws on or before January
22,2016;and
i. to identify and implement improved internal controls by, as necessary,
adopting new or modifying existing internal controls, policies, and procedures designed
to ensure the making and keeping of books, records, and accounts, which, in reasonable
detail, accurately and fairly reflect the transactions and dispositions of the assets of the
Respondent on or before January 22, 2016.
PUBLIC STATEMENTS
10. After the Deferred Period begins, January 22, 2015, the Respondent agrees not to
take any action or to make or permit any public statement through present or future
attorneys, employees, agents, or other persons authorized to speak for it, except in legal
proceedings in which the Commission is not a party in litigation or otherwise, denying,
directly or indirectly, any aspect ofthis Agreement or creating the impression that the
statements in Paragraph 7 of this Agreement are without factual basis. This paragraph is
not intended to apply to any statement made by an individual in the course of any
criminal, civil, or regulatory proceeding initiated by the government or self-regulatory
organization against such individual, unless such individual is speaking on behalf of the
Respondent. If it is determined by the Commission that a public statement by the
Respondent or any related person contradicts in whole or in part this Agreement, at its
sole discretion, the Commission may bring an enforcement action in accordance with
Paragraphs 13 through 16.
11. Prior to issuing a press release concerning this Agreement, the Respondent agrees
to have the text of the release approved by the staff of the Division.
5
SERVICE
12. The Respondent agrees to serve by hand delivery or by next-day mail all written
notices and correspondence required by or related to this Agreement to Tracy L. Price,
Assistant Director, Division ofEnforcement, U.S. Securities and Exchange Commission,
100 F Street, N.E., Mail Stop 5631, Washington, D.C. 20549, (202) 55 1-4490, unless
otherwise directed in writing by the staff of the Division.
VIOLATION OF AGREEMENT
13. The Respondent understands and agrees that it shall be a violation of this
Agreement if it knowingly provides false or misleading information or materials in
connection with the Proceedings or Other Proceedings. In the event of such misconduct,
the Division will advise the Commission of the Respondent's misconduct and may make
a criminal referral for providing false information (18 U.S.C . § 1001), contempt (18
U.S.C. §§ 401-402) and/or obstructing justice (18 U.S.C. § 1503 et seq.).
14. The Respondent understands and agrees that it shall be a violation ofthis
agreement if it violates the federal securities laws after entering into this agreement. It is
further understood and agreed that should the Division determine that it has failed to
comply with any term or condition of this Agreement, the Division will notify the
Respondent or its counsel of the fact and provide an opportunity for the Respondent to
make a submission consistent with the procedures set forth in the Securities Act of 1933
Release No. 5310. Under these circumstances, the Division may, in its sole discretion
and not subject to judicial review, recommend to the Commission an enforcement action
against the Respondent for any securities law violations, including, but not limited to, the
substantive offenses relating to the Investigation. Nothing in this agreement limits the
Division's discretion to recommend to the Commission an enforcement action against the
Respondent for future violations of the federal securities laws, without notice, to protect
the public interest.
15. The Respondent understands and agrees that in any future enforcement action
resulting from its violation of the Agreement, any documents , statements, information,
testimony, or evidence provided by it during the Proceedings or Other Proceedings, and
any leads derived therefrom, may be used against it in future legal proceedings.
16. In the event it breaches this Agreement, the Respondent agrees not to dispute,
contest, or contradict the factual statements in Paragraph 7 above as admissions pursuant
to Federal Rule of Evidence 801 ( d)(2), or their admissibility, in any future Commission
action against it.
COMPLIANCE WITH AGREEMENT
17. Subject to the full, truthful, and continuing cooperation of the Respondent, as
described in Paragraphs 4 and 5, and compliance by Respondent with all obligations,
6
prohibitions and undertakings in the Agreement during the Deferred Period, the
Commission agrees not to bring any enforcement action or proceeding against the
Respondent arising from the Investigation, after the conclusion of the Deferred Period.
18. The Respondent understands and agrees that this Agreement does not bind other
federal, state or self-regulatory organizations, but the Commission may, at its discretion,
issue a letter to these organizations detailing the fact, manner, and extent of its
cooperation during the Proceedings or Other Proceedings, upon the written request of the
Respondent.
19. The Respondent understands and agrees that if it sells, merges, or transfers all or
substantially all of its business operations as they exist as of the date of this Agreement,
whether such a sale is structured as a stock or asset sale, merger, or transfer during the
Deferred Period, it shall include in any contract for sale, merger, or transfer a provision
binding the purchaser/successor in interest to the obligations set forth in this Agreement.
20. The Respondent understands and agrees that the Agreement only provides
protection against enforcement actions arising from the Investigation and does not relate
to any other violations or any individual or entity other than the Respondent.
VOLUNTARY AGREEMENT
21. The Respondent 's decision to enter into this Agreement is freely and voluntarily
made and is not the result of force, threats, assurances, promises, or representations other
than those contained in this Agreement.
22. The Respondent has read and understands this Agreement. Furthermore, the
Respondent has reviewed all legal and factual aspects of this matter with its attorney and
is fully satisfied with its attorney's legal representation. The Respondent has thoroughly
reviewed this Agreement with its attorney and has received satisfactory explanations
concerning each paragraph of the Agreement. After conferring with its attorney and
considering all available alternatives, the Respondent has made a knowing decision to
enter into the Agreement.
23. The Respondent represents that its Board of Directors has duly authorized, in the
resolution attached as Exhibit B , the execution and delivery of this Agreement, and that
the person signing this Agreement has authority to bind the Respondent.
7
ENTIRETY OF AGREEMENT
24. This Agreement constitutes the entire agreement between the Commission and the
Respondent, and supersedes all prior understandings, if any, whether oral or written,
relating to the subject matter herein.
25. This Agreement cannot be modified except in writing, signed by the Respondent
and a representative of the Commission.
26. In the event an ambiguity or a question of intent or interpretation arises, this
Agreement shall be construed as if drafted jointly by the parties hereto, and no
presumption or burden ofproof shall arise favoring or disfavoring the Commission or the
Respondent by virtue of the authorship of any of the provisions of the Agreement.
The signatories below acknowledge acceptance of the foregoing terms and conditions.
RESPONDENT
ll I\IOV6/J\e£X ~I 4
Date C. Ernest Edgar IV, E q.
The Atkins North America
Holdings Corporation
Senior Vice President and
General Counsel
4030 W. Boy Scout Boulevard
Tampa, FL 33607
(813) 281 -3626
On 1\.lov'eM~a , ~, 20J!, c._ . BJJesr GD&~ 11.- , a person known to me, personally
appeared before me and acknowledged executing the foregoing agreement with full
authority to do so on behalf of rm:: ,+il~llll~ f\ioWt AMt1..1c.~ ..abrAI~RESPONDENT] as its
(lEklt:-"1-M. t.OI.tAJ5iL [TITLE] {and pursuant to Exhibit B the attached Resolution of
the Board of Directors} . UJUounoiJ
~d&tt_-Notary Public
State:
Commission number:
Commission expiration:
8
http:AMt1..1c
RESPONDENT'S COUNSEL
Approved as to form:
I!A4-/Li
Date ?· ap, sq.
Greenb g Traurig, P .A.
333 SE 2nd Avenue, Suite 4400
Miami, Florida 33131
(305) 579-0541
Date Edward J. Fuhr, Esq.
Hunton & Williams, LLP
Riverfront Plaza, East Tower
951 East Byrd Street
Richmond, Virginia 23219-4074
(804) 788-8200
SECURITIES AND EXCHANGE COMMISSION
DIVISION OF ENFORCEMENT
)
• Date Kara Novaco Brockmeyer
FCPA Unit Chief
9
RESPONDENT'S COUNSEL
Approved as to form:
Date Mark P. Schnapp, Esq.
Greenberg Traurig, P.A.
333 SE 2"d Avenue, Suite 4400
Miami, Florida 33131
(305) 579-0541
Date Edward J. Fuhr, Esq.
Hunton & Williams, LLP
Riverfront Plaza, East Tower
951 East Byrd Street
Richmond, Virginia 23219-4074
(804) 788-8200
SECURITIES AND EXCHANGE COMMISSION
DIVISION OF ENFORCEMENT
Date Kara Novaco Brockmeyer
FCP A Unit Chief
9
EXHIBIT A
STATEMENT OF FACTS1
If this case had gone to trial, the Commission would have presented evidence sufficient to
establish the following facts:
The PBSJ Corporation
1. The PBSJ Corporation ("PBSJ") was an employee-owned engineering and construction
firm incorporated in Florida and headquartered in Tampa. Through the relevant period,
PBSJ's common stock was registered pursuant to Section 12(g) of the Securities
Exchange Act of 1934 ("Exchange Act") and PBSJ filed annual and quarterly reports as
required under Section 13(a) ofthe Exchange Act and Rules thereunder. 2
2. PBS&J International, Inc. ("PBS&J Int'l") was a wholly-owned subsidiary ofPBSJ
headquartered and incorporated in Florida. PBS&J Int'l was a provider of engineering,
architectural and planning services in international markets, including the Middle East.
PBS&J Int'l currently is a subsidiary ofAtkins.
3. The former President ofPBS&J lnt'l, Walid Hatoum ("Hatoum"), is a United States
citizen who initially worked for PBSJ as an engineer from 1986 until 1990. In February
2009, Hatoum was rehired to join PBS&J Int'l as its Director .oflnternational Marketing,
even though his prior employment file at PBSJ had been marked "Ineligible for Rehire ."
Although Hatoum did not formally join PBS&J Int'l until April2009, he assisted PBS&J
lnt' l with identifying projects as early as November 2008. Hatoum was promoted to
President ofPBS&J Int'l in mid-June 2009, and became an officer ofPBSJ at the same
time.
4. During 2009, PBS&J Int'l won two multi-million dollar development contracts. One
contract was for work in Qatar and the other was for work in Morocco. Both were
competitively solicited and approved by the Qatari Diar Real Estate Investment Company
The facts set forth in Exhibit A are made pursuant to settlement negotiations associated with the violations
alleged by the Division in Paragraph 1 of this Deferred Prosecution Agreement and are not binding against PBSJ or
its directors, officers, or employees, or any other person or entity in any other legal proceeding.
On October 1, 2010, after the conduct at issue, WS Atkins pic ("Atkins"), a public limited engineering and
design company based in the United Kingdom and organized under the laws ofEngland and Wales, acquired PBSJ
and all of its common stock. Atkins is traded on the London Stock Exchange under the symbol A TK.L. That day,
PBSJ filed a Form 15 with the Commission, which terminated all offerings of its securities and removed all
remaining securities from registration under Section 12(g). Post-acquisition, PBSJ became an indirect wholly
owned subsidiary of Atkins. On April 1, 2011, PBSJ changed its name to The Atkins North America Holdings
Corporation.
1
("Qatari Diar"). Qatari Diar was established by the Qatari government to coordinate the
country's real estate development.
5. PBSJ and PBS&J Int'l, through Hatoum, offered bribes to the then-Director of
International Projects at Qatari Diar ("Foreign Official"), to secure Qatari government
contracts by planning to funnel funds to a local company the Foreign Official owned and
, controlled ("Local Partner"). Foreign Official, a former business colleague ofHatoum's
at another U.S. engineering firm, worked for Qatari Diar throughout 2009, until his
resignation from Qatari Diar on December 21, 2009. Prior to joining PBSJ, Hatoum and
Foreign Official discussed directing business in the Middle East to Local Partner.
6. In return, Foreign Official provided PBS&J Int'l with access to confidential sealed-bid
information and pricing information on the two government contracts that helped PBS&J
Int'l tender bids that had a greater likelihood of being awarded, including a government
contract for which the Foreign Official was the project manager.
Offers and Promises Made to Foreign Official
LRT Project in Qatar
7. In November and December 2008, Hatoum began discussing potential employment with
PBSJ. Even before he received a formal employment contract, Hatoum met with PBS&J
Int'l to discuss opportunities to grow PBS&J Int'l business in the Middle East. Hatoum
discussed projects involving Qatari Diar, including a light rail transit project in Qatar
("the LRT Project").
8. In January 2009, Hatoum arranged for Foreign Official's brother, through Local Partner,
to introduce PBS&J Int'l to Qatari Diar senior executives involved in the LRT Project.
Soon after that meeting, PBS&J Int'l decided to bid on the LRT Project. PBS&J Int'l
added Foreign Official's company, Local Partner, on its proposal team as a subcontractor
to handle local operations such as hiring local labor, as well as complying with bonding
and insurance requirements. In return, Hatoum and PBS&J Int'l agreed to pay the
Foreign Official, through Local Partner, 40% of the profits realized from any LRT
Project contract as well as reimburse its direct costs. The remaining profits were to be
split between PBS&J Int'l (40%) and another U.S.-based subcontractor (20%), which
would perform all of the planning and engineering services for the LRT project.
9. At that time, Hatoum was the only person at PBS&J Int'l who had any knowledge about
Foreign Official's ownership interest in Local Partner. Had PBSJ conducted meaningful
due diligence at that time, it would have discovered Foreign Official's dual role as both
government official and third-party owner/operator ofLocal Partner.
2
10. During the bidding process, Foreign Official gave confidential sealed bid information to
PBS&J Int'l to assist it in winning the LRT Project in return for promised payments.
Foreign Official also made strategic and technical decisions on many aspects of the LRT
Project that favored PBS&J Int'l with Hatoum's knowledge.
11. Foreign Official used a Local Partner alias to communicate that information to Hatoum
and other PBSJ and PBS&J Int'l employees while disguising his involvement on multiple
conference calls and in dozens of emails to the United States. Hatoum was aware that
Foreign Official was using the alias in communications with PBSJ employees, officers,
and directors and with Qatari Diar. Hatoum flew to the Middle East to meet with Qatari
Diar officials, including Foreign Official, to discuss PBS&J Int'l' s qualifications for the
LRT Project. At the meeting, neither Foreign Official nor Hatoum informed Qatari Diar
that Foreign Official was working for Local Partner and providing confidential
information and other assistance to help PBS&J Int'l win the contracts.
12. Following its initial submission, PBS&J Int'l revised its bid, based on information and
guidance provided by the Foreign Official, to best position itself to win the LRT Project
and to withstand possible challenges from competitors. On or about August 3, 2009,
Qatari Diar awarded the LRT Project contract worth approximately $35.6 million to
PBS&J Int'l.
13. After the award, PBS&J Int'l opened a joint account with Local Partner that was
accessible to Foreign Official's wife. PBS&J Int'l also authorized a four-year letter of
credit relating to a bank guarantee in Qatar. The letter of credit was a precondition for
receipt of the first contract payment by Qatari Diar to PBS&J Int'l, an up front, 10%
(approximately $3.6 million) payment, which was deposited into the joint account.
14. Once the award was received, Hatoum offered Foreign Official an "agency fee" to Local
Partner for 1.8% of the LRT Project contract amount (equivalent to approximately
$640,000). Additionally, PBS&J Int'l agreed to pay half of the salary of Foreign
Official's wife, who worked for Local Partner.
Design Contract in Morocco
15. In addition to the LRT Project, Qatari Diar opened a Morocco hotel resort development
("Morocco Project") for competitive bid. On August 7, 2009, PBS&J Int'l emailed its
Statement of Qualifications for the design contract to Foreign Official, the Qatari Diar
project manager for the Morocco Project.
16. In October 2009, Hatoum offered payment to Foreign Official in the form of an agency
fee to Local Partner to secure the Morocco Project. The Morocco Project was worth
3
approximately $25 million to PBS&J Int'l, of which the Foreign Official was offered an
agency fee of3% ofthe contract amount, which equates to approximately $750,000.
Hatoum instructed a PBS&J Int'l employee to hide the agency fee within the company's
bid proposal by inflating other components of the offer for the Morocco Project.
17. Foreign Official attended meetings with PBS&J Int'l employees to discuss the project but
neither Foreign Official nor Hatoum told the employees that he was working for Local
Partner. At the same time, Foreign Official, using his Local Partner alias, reviewed and
made changes to PBS&J Int'l' s original bid offer via email and phone. He also made key
technical and strategic proposal decisions throughout the bidding process and instructed
PBS&J Int' l to lower its offer to a specific dollar amount. By doing so, he ensured
PBS&J Int'l's final bid had a greater likelihood of being approved by Qatari Diar. On or
around October 19, 2009, Qatari Diar informed PBS&J Int'l that it was awarded the
Morocco Project.
Red Flags
18. PBSJ and PBS&J Int'l officers and employees ignored multiple red flags that should have
led them to uncover the payment scheme. For example, PBS&J Int'l and PBSJ
employees knew that Local Partner was providing them with confidential sealed bid
information. Hatoum also informed the employees that he was obtaining information
from someone that Hatoum described as a "good friend" and "top executive" at Qatari
Diar. Before PBS&J Int'l submitted its bid for the Morocco Project, a PBS&J Int'l
officer learned that the husband of one of the Local Partner employees was a government
official working on the Morocco Project. The PBSJ Int'l officer learned of Foreign
Official's role while attending dinner with Hatoum, Foreign Official and the Foreign
Official's wife. In addition, a PBSJ employee knew that "agency fees" to Local Partner
were disguised as legitimate costs within the Morocco Project bid.
Discovery of the Payment Scheme
19. Shortly after PBSJ Int'l was awarded the Morocco Project contract, PBSJ' s former Chief
Operating Officer commented to PBSJ's then-general counsel that PBS&J Int'l was
successful in winning two contracts in the Middle East within a fairly short period of
time. PBSJ's then-general counsel asked Hatoum how he was able to win the LRT and
Morocco Project contracts over companies with far more international experience.
Hatoum told PBSJ's then-general counsel PBSJ offered "agency fees" in order to win the
projects and, when asked, admitted there "would be a problem" if the agency fees were
not paid. PBSJ' s then-general counsel immediately launched an investigation of this
issue .
4
20. Three weeks later, in November 2009, a Qatari government official informed Hatoum
and the then-President ofPBSJ that Qatari Diar had discovered Foreign Official's
involvement in Local Partner and was rescinding PBS&J Int'l's contract for the Morocco
Project. Hatoum then secretly made an offer of employment to a second Qatari foreign .
official in return for influencing Qatari Diar to reinstate the contract. However, Qatari
Diar refused to reinstate the contract and did not provide PBS&J Int'l any proceeds for
the project. PBSJ suspended Hatoum in December 2009. Hatoum also began deleting
emails and other records.
21. PBS&J Int'l and Qatari Diar negotiated a termination of the LRT Project contract
effective December 31,2009. In January 2010, Qatari Diar entered into a bridge contract
with PBS&J Int'l to continue work on the LRT Project (the "Bridge Contract") until a
replacement company could be found. Ultimately, the period of performance on the
Bridge Contract was 16 'h months . PBS&J Int'l earned $2,892,504 in profits on the
Bridge Contract.
22. PBSJ and Qatari Diar caught Hatoum's scheme before any of the offered and authorized
amounts were paid.
Failure to Maintain Adequate Internal Controls
23 . PBSJ failed to devise and maintain an adequate system of internal accounting controls.
The violations involved conduct orchestrated by a high level manager at PBS&J Int'l and
numerous red flags were overlooked by PBSJ and PBS&J Int'l managers and employees.
Employees were aware that they were receiving confidential information in a sealed-bid
process from a foreign official and that their bids were inflated to conceal payments to
Local Partner. Over a million dollars in payments were offered and authorized to Foreign
Official through Local Partner without a system of internal accounting controls to
identify and detect the improper transactions. PBS&J Int'l agreed to pay Local Partner
40% of the LRT Project profits without subjecting Local Partner or its employees to any
meaningful due diligence. PBS&J Int'l did not request a due diligence questionnaire
from Local Partner before it initiated its investigation into the matter, and asked no
questions about Local Partner's purported financial statements, work experience, ability
to perform the work it was supposed to do under the contract, external auditors, or
owners, despite knowing that a Local Partner employee was married to a government
official at Qatari Diar. In fact, during the period, PBSJ considered but declined adopting
due diligence controls over its contractors and joint venture partners.
24. As a result, PBS&J Int'l, through Hatoum, offered and authorized bribes to Foreign
Official through Local Partner totaling approximately $1,390,000 to secure the LRT and
5
Morocco Projects, plus a portion of any profits Local Partner realized from the LRT
Project and partial salary to Foreign Official 's wife.
25. Although PBSJ offered FCPA training at PBSJ and PBS&J Int'l, the company did not
ensure that its employees take the training prior to working on international matters. As a
result, key PBS&J Int'l personnel on the LRT and Morocco Projects received little, if
any, FCP A training during the relevant period. Hatoum received annual FCP A training
from his previous employer. Hatoum was offered FCPA training by PBSJ on his first day
of official employment in April2009, but did not take it. Hatoum did not receive training
from PBSJ until after Qatari Diar cancelled the Morocco Project in November 2009.
Failure to Maintain Books and Records
26. PBSJ, directly and through PBS&J Int'l, failed to make and keep books, records, and
accounts which accurately and fairly reflected PBS&J Int'l' s transactions with Local
Partner intended for Foreign Official. Some of the payments offered and authorized to
Foreign Official were concealed within other, legitimate categories ofcosts within bids,
while others were improperly described in the books and records as legitimate transaction
costs. PBSJ failed to accurately disclose in its books and records that the joint account
entered into with Local Partner would benefit Foreign Official.
Self-Report, Remedial Measures and Cooperation
27. PBSJ conducted an internal investigation. PBSJ self-reported its preliminary findings of
the conduct to staff of the Division of Enforcement ("Division") and the Department of
Justice ("DOJ").
28. PBSJ also took immediate steps to end the misconduct. PBSJ suspended Hatoum in
December 2009 and later reprimanded four other employees that missed red flags that
should have alerted them to the illegal activity. PBSJ also withdrew all proposals in the
Middle East initiated during Hatoum's tenure with PBS&J Int'l. PBSJ reviewed its pre
existing compliance program and revised and enhanced its compliance program,
including, in part, adoption of: (1) a detailed due diligence questionnaire for contractors,
sponsors, and agents; (2) an enhanced FCP A compliance program with mandatory annual
training for employees and third-party agents; (3) an international compliance oversight
committee at the corporate level; and (4) an annual FCPA compliance audit.
6
29. PBSJ ultimately provided substantial cooperation to the staff of the Division, including:
voluntarily producing documents and disclosing information to the staff; voluntarily
making witnesses available for interviews; and allowing its then-general counsel to
interview with staff; and providing factual chronologies, timelines, internal interview
summaries, and full forensic images of data.
7
EXHIBITB
UNANIMOUS WRITTEN CONSENT
OF
THE BOARD OF DIRECTORS
OF
THE ATKINS NORTH AMERICA HOLDINGS CORPORATION
November 19,2014
The undersigned, being all of the members of the Board of Directors (the "Board") of
The Atkins North America Holdings Corporation, formerly known as The PBSJ Corporation, a
Florida corporation (the "Corporation"), pursuant to the provisions of the Florida Business
Corporation Act, do hereby waive all formal requirements, including the necessity of holding a
formal meeting, and any requirement that notice of such meeting be given and do hereby agree
that when the undersigned have signed this consent (the "Consent"), the resolutions set forth
below shall be deemed to have been adopted to the same extent and to have the same force and
effect as if adopted at a formal meeting of the Board of the Corporation duly called and held for
the purpose of acting upon proposals to adopt such resolutions.
WHEREAS, the Corporation, through counsel, has been engaged in discussions with the
staff of the Securities and Exchange Commission (the "SEC") regarding its investigation into
potential civil claims relating to the Foreign Corrupt Practices Act (the "FCPA Matters") ;
WHEREAS, in order to resolve the PCP A Matters, it is proposed that the Corporation
enter into a Deferred Prosecution Agreement with the SEC (the "DPA");
WHEREAS, the Board has thoroughly reviewed the DP A;
WHEREAS, the Board has been advised by the Corporation's General Counsel of the
Corporation's rights, possible defenses to the FCPA Matters, the consequences of entering into
the DPA, and the alternatives to entering into the DPA, and has received counsel's advice with
respect to those matters; and
WHEREAS, the Board has determined that it is in the best interests of the Company to
enter into the DP A;
NOW, IT IS THEREFORE,
RESOLVED, the Corporation agrees to enter into a DP A with the SEC in substantially
the form reviewed by the Board; and it is
FURTHER RESOLVED, the Corporation's General Counsel is authorized to execute
the DP A in substantially the same form as reviewed by the Board, with such changes as the
General Counsel may approve; and it is
FURTHER RESOLVED, that this Consent may be executed in several counterparts and
by facsimile, electronic and or other format and all so executed shall constitute one Consent,
shall be binding on all the parties hereto, notwithstanding that all the parties are not signatories to
the original or same counterpart and, further, that any such facsimile, electronic or other copy of
this Consent and all signatures thereon shall be deemed an original and any person may rely
upon such copy of this Consent in determining the validity ofthe actions taken hereunder.
IN WITNESS WHEREOF, the undersigned have executed this unanimous written
Consent as of the date first set forth above for the purpose of giving consent thereto.
DIRECTORS:
~~b~--
L. Joe Boyer, Chair
Michael M. Newton
C. Ernest Edgar IVshall be binding on all the parties hereto, notwithstanding that all the parties are not signatories to
the original or same counterpart and, further, that any such facsimi le, electronic or other copy of
this Consent and all signatures thereon shall be deemed an original and any person may rely
upon such copy of this Consent in determining the validity of the actions taken hereunder.
IN WITNESS WHEREOF, the undersigned have executed this unanimous written
Consent as of the date first set forth above for the purpose of giving consent thereto.
DIRECTORS:
L.. Joe Boyer, Chair
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