Tenaris to pay US$ 5.4 million in sec first ever deferred prosecution agreement
 

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Tenaris to pay US$ 5.4 million in sec first ever deferred prosecution agreement Document Transcript

  • 1. Tenaris to Pay $5.4 Million in SECs First-Ever Deferred Prosecution Agreement Home | Previous Page Tenaris to Pay $5.4 Million in SECs First-Ever Deferred Prosecution Agreement FOR IMMEDIATE RELEASE 2011-112 Washington, D.C., May 17, 2011 – The Securities and Exchange Commission today entered into a Deferred Prosecution Agreement (DPA) with Tenaris S.A. in its first-ever use of the approach to facilitate and reward cooperation in SEC investigations. Additional Materials Deferred Prosecution Agreement The agreement with Tenaris involves allegations that the global manufacturer of steel pipe products violated the Foreign Corrupt Practices Act (FCPA) by bribing Uzbekistan government officials during a bidding process to supply pipelines for transporting oil and natural gas. The SEC alleges that Tenaris made almost $5 million in profits when it was subsequently awarded several contracts by the Uzbekistan government. Under the terms of the DPA, Tenaris must pay $5.4 million in disgorgement and prejudgment interest. Tenaris is the first company to enter into a DPA with the SEC, an approach announced last year to encourage individuals and companies to provide information about misconduct and assist with an SEC investigation. When Tenaris conducted a thorough, worldwide internal review of its operations and controls, it discovered FCPA violations by personnel in Uzbekistan and informed the SEC. In response to its findings, Tenaris reviewed its controls and compliance measures and significantly enhanced its anti-corruption policies and practices. Tenaris has agreed to cooperate further with the SEC, Justice Department, and any other law enforcement agency in connection with this case. Tenaris also agreed to pay a $3.5 million criminal penalty in a Non-Prosecution Agreement announced today by the Justice Department. “The Tenaris foreign bribery scheme was unacceptable and unlawful, but the company’s response demonstrated high levels of corporate accountability and cooperation,” said Robert Khuzami, Director of the SEC’s Division of Enforcement. “The company’s immediate self-reporting, thorough internal investigation, full cooperation with SEC staff, enhanced anti-corruption procedures, and enhanced training made it an appropriate candidate for the Enforcement Division’s first Deferred Prosecution Agreement. Effective enforcement of the securities laws includes acknowledging and providing credit to those who fully and completely support our investigations and who display an exemplary commitment to compliance, cooperation, and remediation.”? Cheryl Scarboro, Chief of the SEC Enforcement Division’s FCPA Unit, added, “Tenaris’s conduct was clearly in violation of the FCPA. The company’s employees bribed government officials in Uzbekistan to obtain government contracts. But when Tenaris discovered the illegal conduct, it took noteworthy steps to address the violations and significantly enhance its anti-corruption policies and practices to remediate weaknesses in its internalhttp://www.sec.gov/news/press/2011/2011-112.htm[28-12-2011 20:02:14]
  • 2. Tenaris to Pay $5.4 Million in SECs First-Ever Deferred Prosecution Agreement controls.” Tenaris is incorporated in Luxembourg and its American Depositary Receipts (TS) are listed on the New York Stock Exchange. According to the DPA, the SEC alleges that Tenaris bid on a series of contracts in 2006 and 2007 and bribed Uzbekistan officials to gain access to confidential bids by competitors. Tenaris used the information to revise its own bids, and as a result was awarded several contracts by the Uzbekistan government. Under the terms of the DPA, the SEC will refrain from prosecuting the company in a civil action for its violations if Tenaris complies with certain undertakings. Among other things, Tenaris has agreed to enhance its policies, procedures, and controls to strengthen compliance with the FCPA and anti-corruption practices. Tenaris will implement due diligence requirements related to the retention and payment of agents, provide detailed training on the FCPA and other anti-corruption laws, require certification of compliance with anti-corruption policies, and notify the SEC of any complaints, charges, or convictions against Tenaris or its employees related to violations of any anti-bribery or securities laws. Tenaris has agreed to continue to fully cooperate with the SEC in its investigation. The SEC’s investigation was conducted by Karen L. Martinez, Assistant Director of the Salt Lake Regional Office, and William B. McKean of the Enforcement Division’s FCPA Unit. The SEC acknowledges the assistance of the Department of Justice’s Fraud Section and the Federal Bureau of Investigation in this case. The SEC’s investigation is continuing. # # # For more information about this enforcement action, contact: Cheryl Scarboro Chief, SEC Enforcement Division’s FCPA Unit 202-551-4403 For general questions about Deferred Prosecution Agreements, contact: Robert Khuzami Director, SEC Division of Enforcement (202) 551-4894 http://www.sec.gov/news/press/2011/2011-112.htm Home | Previous Page Modified: 05/17/2011http://www.sec.gov/news/press/2011/2011-112.htm[28-12-2011 20:02:14]