Jenner & Block

Foreign Corrupt Practices Act Update Resource Center

As a service to Jenner & Block's clients and the greater legal community, the Firm's Government Contracts practice maintains this online resource center that offers the latest case law and other developments relating to the Foreign Corrupt Practices Act (FCPA).

In addition, Jenner & Block published the “FCPA Business Guide” which is available by clicking here.

Jenner & Block will update this web page with new developments and items of interest as they become available.  For further information, please contact Partner Jessie K. Liu.

KBR & Halliburton Settle FCPA Charges Re Nigerian Contracts.

Kellogg Brown & Root LLC has pled guilty to anti-bribery charges arising out of improper payments it made with joint venture partners to obtain $6 billion in engineering, procurement and construction contracts for liquefied natural gas facilities in Nigeria.  See Press Release, Dep’t of Justice, Kellogg Brown & Root LLC Pleads Guilty To Foreign Bribery Charges And Agrees To Pay $402 Million Criminal Fine (Feb. 11, 2009).  At the same time, KBR and its former parent, Halliburton Company, settled related charges asserted by the SEC.  See SEC Litigation Release No. 20897 (Feb. 11, 2009).  The scheme involved sham agent agreements to funnel payments to Nigerian officials.  United States v. Kellogg Brown & Root LLC, plea agreement (S.D. Tex. Feb. 11, 2009).  The SEC alleged that Halliburton lacked internal controls sufficient to detect or prevent such activity, and to have inaccurate books and records as a result of the improper payments.  SEC v. Halliburton Co., complaint (S.D. Tex. Feb. 11, 2009).  KBR agreed to pay a $402 million criminal fine (out of a possible range of $376M-753M under the federal Sentencing Guidelines), while KBR and Halliburton jointly agreed to pay $177 million in disgorgement to the SEC.

ITT Resolves Civil FCPA Charges For Conduct By Chinese Sub.

ITT Corporation has resolved books and records and internal controls charges by the SEC in connection with alleged unlawful payments made by a Chinese subsidiary of ITT to employees of numerous state-owned entities in China.  See SEC Litigation Release No. 20896 (Feb. 11, 2009).  The alleged payments, disguised as commissions, totaled $200,000, with a resulting improper profit to ITT of more than $1 million.  The SEC charged that the disguised commissions were included as improper entries in ITT’s consolidated financial statements, and ITT had inadequate internal controls.  SEC v. ITT Corp., complaint (D.D.C. Feb. 11, 2009).