The SEC announced today that it has reached settlements with KBR, Inc. and Halliburton Co. to resolve SEC charges that a KBR subsidiary (Kellogg Brown & Root) bribed Nigerian government officials over a 10-year period, in violation of the Foreign Corrupt Practices Act. The bribes were allegedly paid to obtain construction contracts. The SEC also charged that KBR and Halliburton, KBR’s former parent company, engaged in books and records violations and internal controls violations related to the bribery.
The SEC announced that KBR and Halliburton have agreed to pay $177 million in disgorgement to settle the SEC’s charges. Kellogg Brown & Root LLC has agreed to pay a $402 million fine to settle parallel criminal charges brought today by the DOJ. The sanctions represent the largest combined settlement ever paid by U.S. companies since the FCPA’s inception.
The SEC further stated that:
In the related criminal proceeding announced today, the DOJ filed a criminal action against Kellogg Brown & Root LLC, charging one count of conspiring to violate the FCPA and four counts of violating the anti-bribery provisions of the FCPA. Kellogg Brown & Root LLC has pled guilty to each of these counts. Under its plea agreement, Kellogg Brown & Root LLC is required to pay a criminal fine of $402 million and to retain a monitor to review and evaluate KBR’s policies and procedures as they relate to compliance with the FCPA.