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The Other Shoe Drops On TechnipFMC As The SEC Announces A $5 Million Enforcement Action

othershoe

The SEC’s fiscal year ends on September 30th. Thus, it is likely that many loose ends are being closed this week and, with history as a guide, there is likely to be more FCPA enforcement actions this week.

Most FCPA enforcement actions against issuers that include a DOJ and SEC component are resolved on the same day. However, as noted in prior posts here and here concerning the DOJ’s net $81.9 million FCPA enforcement action against TechnipFMC in June 2019, the SEC prong of the enforcement action was left open.

This loose end was closed yesterday as the SEC announced an approximate $5 million enforcement action against the company “for violations of the FCPA by FMC Technologies prior to its 2017 merger with Technip S.A.”

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Friday Roundup

Roundup

Quotable, sentenced, scrutiny updates, dismissed and for the reading stack. It’s all here in the Friday roundup.

Quotable

In a recent Corporate Crime Reporter interview, former DOJ FCPA prosecutor Ephraim Wernick was asked if FCPA enforcement has changed under the Trump administration and stated:

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Issues To Consider From The TechnipFMC Enforcement Action

Issues

This previous post went in-depth into the net $81.9 million DOJ FCPA enforcement action against TechnipFMC and how the company joined the FCPA repeat offender list. This post continues the analysis by highlighting additional issues to consider.

Statute of Limitations

Pardon me for being “that guy” but the bulk of the conduct at issue in the enforcement action (both the Technip USA information and plea involving alleged conduct in Brazil and the TechnipFMC  information and DPA involving alleged conduct in Iraq) took place between 2003 and 2010 (in other words approximately 10 – 15 years prior to the enforcement action).

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TechnipFMC Joins FCPA Repeat Offender Club, Resolves Net $81.9 Million DOJ FCPA Enforcement Action, SEC Enforcement Action Forthcoming, Individual Criminally Charged

technipfmc

That’s a dense headline, but there was much at play in this DOJ announcement from earlier this week.

First, Technip joined the ever growing list of FCPA repeat offenders (see here) as the company previously resolved a $340 million FCPA enforcement action in 2010 concerning conduct at Bonny Island, Nigeria. (See here and here for prior posts). For good measure, as highlighted in this prior post, in 2016 FMC Technologies resolved a so-called non-FCPA, FCPA enforcement action.

Second, most FCPA enforcement actions against issuers that include a DOJ and SEC component are resolved on the same day, however this week’s development was DOJ only and this company press release states “TechnipFMC has reached an agreement in principle with the SEC Staff, subject to final SEC approval.”

Third, in connection with the same core conduct alleged in the DOJ enforcement action the DOJ also criminally charged Zwi Skornicki (a citizen of Brazil).

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