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FCPA Blog Daily News

« Joint Venture Compliance | Main | Lucent Settles FCPA Violations For $2.5 Million »
Friday
Dec212007

Akzo Nobel Pays $2.9 Million For FCPA Violations Under the U.N. Oil for Food Program

Akzo Nobel N.V., a Netherlands-based pharmaceutical company, settled U.S. Foreign Corrupt Practices Act books and records charges with the U.S. Department of Justice and the Securities and Exchange Commission. With the SEC, Akzo Nobel consented to the entry of a final judgment permanently enjoining it from future violations of Sections 13(b)(2)(A) and 13(b)(2)(B) of the Securities Exchange Act of 1934, ordering it to disgorge $1,647,363 in profits, plus $584,150 in pre-judgment interest, and to pay a civil penalty of $750,000. Akzo Nobel will also enter into a non-prosecution agreement with the DOJ.

The SEC's complaint alleges that from 2000 to 2003, two of Akzo Nobel's subsidiaries authorized and made $279,491 in kickback payments in connection with their sales of humanitarian goods to Iraq under the U.N. Oil for Food Program. The kickbacks were characterized as "after-sales service fees," but no bona fide services were performed. The kickbacks were paid by third parties to Iraqi-controlled accounts in Lebanon and Jordan.

The SEC said it considered remedial acts promptly undertaken by Akzo Nobel, which self-reported the violations and cooperated with the U.S. government's investigation.

Akzo Nobel NV's ADRs trade in the Pink Sheets (Other OTC) under the symbol AKZOY.PK.

View other posts about the Oil For Food Program Here.

View the SEC's Litigation Release No. 20410 / December 20, 2007 Here.

View the SEC's Complaint in Securities and Exchange Commission v. Akzo Nobel, N.V., Civil Action No. 07-CV-02293 (D.D.C.) (HHK) Here.

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