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3 Vetco Subsidiaries Plead Guilty to Bribery
Breaking Legal News |
2007/02/06 13:01
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WASHINGTON – Vetco Gray Controls Inc., Vetco Gray Controls Ltd., and Vetco Gray UK Ltd., wholly owned subsidiaries of Vetco International Ltd., have pleaded guilty to violating the anti-bribery provisions of the Foreign Corrupt Practices Act, or FCPA, Deputy Attorney General Paul J. McNulty announced today. At a hearing today before U.S. District Judge Lynn N. Hughes in the Southern District of Texas, the companies pleaded guilty to violations of the anti-bribery provisions of the FCPA, as well as conspiracy to violate the FCPA. Additionally, Aibel Group Ltd., another wholly owned subsidiary of Vetco International, simultaneously entered into a deferred prosecution agreement with the Justice Department regarding the same underlying conduct. As part of the plea and deferred prosecution agreements, it was agreed that Vetco Gray Controls Inc., Vetco Gray Controls Ltd., and Vetco Gray UK Ltd. would pay criminal fines of $6 million, $8 million, and $12 million, respectively, for a total of $26 million. This total fine amount represents the largest criminal fine to date in a FCPA prosecution by the Justice Department. In the charging and plea documents, Vetco Gray Controls Inc., Vetco Gray Controls Ltd., and Vetco Gray UK Ltd. admitted that they violated and conspired to violate the FCPA in connection with the payment of approximately $2.1 million in corrupt payments over approximately a two-year period to Nigerian government officials. These corrupt payments were paid through a major international freight forwarding and customs clearance company to employees of the Nigerian Customs Service, and coordinated largely through Vetco Gray Controls Inc.'s offices in Houston. Additionally, Aibel Group Ltd. agreed in its deferred prosecution agreement to accept responsibility for similar conduct by its employees. As the charging and plea documents reflect, beginning in February 2001, Vetco Gray UK began providing engineering and procurement services and subsea construction equipment for Nigeria's first deepwater oil drilling project, the Bonga Project. Several Vetco Gray UK affiliates, including Aibel Group Ltd., Vetco Gray Controls Inc., and Vetco Gray Controls Ltd., supplied Vetco Gray UK with employees and manufacturing equipment for the project. From at least September 2002 to at least April 2005, each of the defendants engaged the services of a major international freight forwarding and customs clearing company and, collectively, authorized that agent to make at least 378 corrupt payments totaling approximately $2.1 million to Nigerian Customs Service officials to induce those officials to provide the defendants with preferential treatment during the customs process. “This case represents the largest criminal penalty the Department of Justice has ever sought in a Foreign Corrupt Practices case and confirms our commitment to root out corruption,” said Deputy Attorney General McNulty. “The Department of Justice will continue its efforts to assure a level playing field for businesses operating abroad.” This is the second time since July 2004 Vetco Gray UK has pled guilty to violating the FCPA. On July 6, 2004, Vetco Gray UK, previously named ABB Vetco Gray UK Ltd., and an affiliated company pleaded guilty to violating the antibribery provision of the FCPA in connection with the payment of more than $1 million in bribes to officials of NAPIMS, a Nigerian government agency that evaluates and approves potential bidders for contract work on oil exploration projects. ABB Vetco Gray UK Ltd. was renamed Vetco Gray UK Ltd. following an acquisition by a group of private equity entities of the upstream oil and gas businesses and assets of its parent corporation, ABB Handels-und Verwaltungs AG (“ABB”). The July 12, 2004 acquisition included the sale of Vetco Gray UK and the predecessors to the two other Vetco International subsidiaries that pleaded guilty today. In anticipation of the July 12, 2004 acquisition, the private equity acquirers requested and the Justice Department issued an FCPA Opinion Release (No. 2004-02) ( http://www.usdoj.gov/criminal/fraud/fcpa/o0402.htm). The Opinion Release required the acquirers to effectively institute and implement a compliance system, internal controls, training, and other procedures sufficient to have deterred and detected violations of the FCPA, among other obligations. The corrupt payments underlying today’s guilty pleas continued unabated from the period prior to the acquisition until at least mid-2005, notwithstanding the acquirer’s commitments to the Justice Department under the Opinion Release. The sale to new owners, the prior directives issued by the Department of Justice, and Vetco Gray UK’s prior FCPA conviction were all taken into account under the U.S. Sentencing Guidelines in calculating the $12 million criminal fine against Vetco Gray UK Ltd. The resolution of the criminal investigation of Vetco International and its subsidiaries resulted, in large part, from the actions of Vetco International in voluntarily disclosing the matter to the Justice Department and Vetco International’s subsidiaries’ agreement to take significant remedial steps. In addition to the criminal fines, the plea agreements also require the defendants to: (1) hire an independent monitor to oversee the creation and maintenance of a robust compliance program; (2) undertake and complete an investigation of the companies’ conduct in various other countries as originally required under FCPA Opinion Release No. 2004-02; and (3) ensure that in the event that any of the companies are sold, the sale shall bind any future purchaser to the monitoring and investigating obligations. |
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Minnesota Man Banned From Preparing Taxes
Court Watch |
2007/02/06 12:54
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WASHINGTON – A federal court in Minnesota has issued a permanent order barring Nash Sonibare, who operated Liberty Financial Group in St. Paul, Minn., from preparing federal income tax returns for others, the Justice Department announced today. The permanent injunction order was entered on February 5, 2007, by Judge Donovan Frank of the U.S. District Court for the District of Minnesota. The government complaint alleged that Sonibare, a Nigerian immigrant, repeatedly prepared returns for his customers containing false or inflated credits and deductions. The complaint alleged that many of Sonibare’s customers are recent immigrants with limited English-language skills from various African countries, including Somalia, Ethopia, Eritrea, Nigeria, Ghana and Cameroon. The court found that Sonibare repeatedly prepared federal income tax returns that contained false or inflated Schedule C expenses, false Schedule C businesses, false or inflated Schedule C business losses, false education credits, false dependency exemptions, and other fraudulent items. A Schedule C reports profits and losses from businesses and is used for sole proprietorships. The Justice Department has sought and obtained injunctions against more than 220 federal tax promoters and preparers since 2001. Information about these cases is available on the Justice Department Tax Division’s Web site at http://www.usdoj.gov/tax/taxpress2006.htm. More information about the Justice Department’s Tax Division can be found at http://www.usdoj.gov/tax. |
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Goldman Scarlato File Powerwave Tech. Lawsuit
Law Firm News |
2007/02/06 11:19
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CONSHOHOCKEN, Pa.- Goldman Scarlato & Karon, P.C., a law firm with offices in Pennsylvania and Ohio, announces that a lawsuit has been filed in the United States District Court for the Central District of California, on behalf of persons who purchased or otherwise acquired publicly traded securities of Powerwave Technologies Inc. (“Powerwave” or the “Company”) (NASDAQ:PWAV) between May 2, 2005 and October 9, 2006, inclusive, (the “Class Period”). The lawsuit was filed against Powerwave and certain officers and directors (“Defendants”).
If you are a member of this class and wish to view a copy of a complaint and join this class action, please e-mail us at info@gsk-law.com and request a copy of the complaint and a plaintiff certification. If you are a member of the Class, you may move the Court no later than April 2, 2007 to serve as a lead plaintiff for the Class. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that Defendants made a series of materially false and misleading statements or failed to disclose certain adverse facts, including; (1) problems associated with the implementation of the Company’s enterprise resource management system; (2) that Defendants had overstated Powerwave’s profitability and understated its expenses and acquisition integration costs; (3) that the Company did not have adequate internal controls; and, (4) as a result of the foregoing, Defendants lacked any reasonable basis to claim that Powerwave was operating according to plan and could achieve financial guidance issued by Defendants. On October 9, 2006, Powerwave announced preliminary financial results for the third quarter of 2006. The press release announced that the Company expected revenue for the quarter to be in the range of $155 million to $160 million, approximately $50 million below the Company’s previous guidance. In reaction to the news, shares of Powerwave fell from $7.79 per share to $6.41 per share, a decline of approximately 17.7%.
If you bought Powerwave securities between May 2, 2005 and October 9, 2006, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (888) 668-4130 to speak with an advisor. |
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Efforts to stop transnational gangs announced
International |
2007/02/05 12:51
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SAN SALVADOR, EL SALVADOR – Today, Attorney General Alberto R. Gonzales and Salvadoran President Elias Antonio Saca announced tough new collaborative efforts to combat transnational gangs such as MS-13 and 18th Street that operate in El Salvador, elsewhere in Central America, Mexico, and the United States. The comprehensive, four-part initiative is designed to help identify and prosecute the most dangerous Salvadoran gang members through programs to enhance gang enforcement, fugitive apprehension, international coordination, information sharing, and training and prevention. “This initiative will enable the United States and our colleagues in Central America to share information and coordinate law enforcement efforts as we work in partnership to target and dismantle violent gangs,” said Attorney General Alberto R. Gonzales. “I look forward to working with President Saca and other Central American leaders to fight crime and keep our citizens safe.” First, through assistance from the U.S. Federal Bureau of Investigation (FBI) and the U.S. Department of State, El Salvador’s civilian police force (Policia Nacional Civil or PNC) will establish a new Transnational Anti-Gang (TAG) Unit to better pursue and prosecute gang members. FBI agents will provide front-line training, information-sharing, and other support aimed at increasing the capacity of PNC detectives to identify and arrest the worst offenders, who can then be prosecuted, when possible, by a Salvadoran anti-gang prosecutor embedded as a member of the new TAG unit. Second, to better identify, track and apprehend gang members, the FBI will accelerate the implementation of the Central American Fingerprinting Exploitation (CAFE) initiative. The State Department and the FBI will collaborate to provide equipment and training to help law enforcement agencies in El Salvador and other Central American nations acquire digital fingerprints of violent gang members and other criminals who travel and commit crimes under different identities in El Salvador, the U.S. and other countries. The prints will then be integrated into a computerized system that allows law enforcement officials from participating countries to exchange information. Additionally, the Justice Department is working with the Department of Homeland Security (DHS), El Salvador and others in the region to implement DHS’s new Electronic Travel Document system (eTD), which will provide law enforcement officials in El Salvador with electronic information on Salvadoran gang members and other criminals who have been deported from the United States to El Salvador after serving their sentences in the United States. Third, because international cooperation and coordination is critical to combat gangs that know no borders, tomorrow in Los Angeles, for the first time, the Chiefs of Police for El Salvador, Guatemala, Honduras, and Belize are meeting in an international summit of chiefs of police focused on the single issue of transnational gangs. The outcome of that summit will be proposals that will be presented at the 3rd Annual International Gang Conference in San Salvador in April. In addition, at the request of the government of El Salvador, the U.S. Marshals Service (USMS), FBI, Drug Enforcement Administration (DEA), Bureau of Alcohol Tobacco, Firearms and Explosives (ATF), and other law enforcement agencies will conduct a series of joint assessments of anti-gang capabilities in El Salvador, and help identify the best strategic options for El Salvador for undertaking additional steps to enhance domestic and regional anti-gang efforts in such areas as gang intelligence, fugitive apprehension, witness protection, firearms violence, prisons and drug trafficking. Fourth, the United States has increased its anti-gang training in Central America, including efforts through the International Law Enforcement Academy (ILEA) in San Salvador. Last week the Academy completed its third anti-gang program in recent months, training police and prosecutors from El Salvador and nearby countries in the best practices of targeting and fighting gang activity and other crimes. The Attorney General announced today that the State Department is funding a new regional anti-gang program aimed at gang prevention, police training, and the development of effective law enforcement and criminal justice institutions in El Salvador and neighboring countries. The U.S. Agency for International Development is also funding a new regional program to support public-private partnerships in gang prevention and to further regional cooperation on this issue. These joint initiatives with El Salvador are part of a greater effort by the U.S. government to combat gangs and gang-related violence in North and Central America. The Department of Justice, under the leadership of Attorney General Gonzales, has made the fight against gangs one of its highest priorities. Just last year, Attorney General Gonzales created a new, national anti-gang task force, the National Gang Targeting, Enforcement and Coordination Center (GangTECC) – led by the Department’s Criminal Division and made up of agents from ATF, DEA, FBI, USMS, the Bureau of Prisons, and Department of Homeland Security’s Immigration and Customs Enforcement (ICE). GangTECC works in close collaboration with the new National Gang Intelligence Center, the Gang Squad prosecution unit in the Criminal Division, and the FBI’s MS-13 National Gang Task Force, as well as with other federal, state, local and overseas law enforcement agencies. In order to coordinate the Department’s efforts to fight gangs, Attorney General Gonzales has established an Anti-Gang Coordination Committee which organizes the Department’s wide-ranging efforts to combat gangs. Additionally, every U.S. Attorney has appointed an anti-gang coordinator to provide leadership and focus to the Department’s anti-gang efforts at the district level. In coordination with local law enforcement and community partners, the anti-gang coordinators have developed comprehensive, district-wide strategies to address the gang problems in their districts. |
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U.S. Civilian Sentenced for Bribing U.S. & Iraqi Officials
Court Watch |
2007/02/05 10:54
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WASHINGTON - A former U.S. army civilian translator was sentenced to three years in prison for attempting to bribe a senior Iraqi police official in violation of the Foreign Corrupt Practices Act (FCPA), Assistant Attorney General Alice S. Fisher of the Criminal Division and U.S. Attorney Jeffrey A. Taylor of the District of Columbia announced today. Faheem Mousa Salam, 29, of Livonia, Mich., a U.S. citizen, was sentenced today in U.S. District Court for the District of Columbia by the Hon. Judge Richard J. Leon. Salam was arrested on March 23, 2006 at the Dulles International Airport upon his return from Iraq, and pleaded guilty on August 4, 2006 to violating the Foreign Corrupt Practices Act. Salam admitted that in January 2006, while working in Baghdad as a civilian translator for a U.S. army subcontractor, he offered a senior Iraqi police official $60,000 in exchange for the official's assistance in facilitating the purchase of 1,000 armored vests and a sophisticated map printer for a sale price of approximately $1 million. Salam requested the official use his position with the Iraqi police force to coordinate the sale of the material to the multinational Civilian Police Assistance Training Team (CPATT), an organization designed to train the Iraqi police and border guard in Iraq. Salam admitted that he later made final arrangements with an undercover agent of the Office of the Special Inspector General for Iraq Reconstruction who was posing as a procurement officer for CPATT. Salam admitted that during the subsequent discussions with the undercover agent he offered a separate $28,000 to $35,000 to the agent to process the contracts. At sentencing, the government argued that Salam was motivated by greed and the prospect of financial gain, rather than any desire to provide the Iraqi troops with equipment; in fact, Salam made no attempt to check the brand names, quality or source of the vests, demonstrating that his motives were anything but altruistic. The case is being prosecuted jointly by the Criminal Division's Fraud Section Deputy Chief Mark F. Mendelsohn and Trial Attorney Stacey Luck and Assistant United States Attorney for the District of Columbia Bradley Weinsheimer. The case was investigated by the Office of the Special Inspector General for Iraq Reconstruction. |
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Court rules for man arrested for cursing
Court Watch |
2007/02/03 16:27
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A federal appeals court has ruled that a police officer who arrested a Michigan man for using a curse word in a public meeting violated the man's right to free speech. The ruling reverses a lower court's decision that the officer had probable cause to arrest Thomas Leonard, who cursed while addressing the Montrose Township board in 2002. At the time, his wife was suing the town over a towing contract. A three-judge appeals panel ruled that the use of "mild profanity" while peacefully advocating a political position is not a criminal act. |
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Michigan appeals court rules against same-sex benefits
Court Watch |
2007/02/03 16:26
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The Michigan Court of Appeals has ruled that an amendment to the state constitution defining marriage as between a man and a woman also prohibits Michigan public employers from offering benefits, such as health insurance, to same-sex partners of homosexual employees. The appeals court overturned a lower court decision finding no conflict between the 2004 amendment and providing the benefits. In its ruling Thursday, the court wrote: It is undisputed that under the marriage amendment, heterosexual couples that have not married also may not obtain employment benefits as a couple on the basis of an agreement "recognized as a marriage or similar union for any purpose. . . ." The amendment is grounded in the longstanding and legitimate governmental interest in favoring the institution of marriage. . . . The amendment is narrowly tailored to further the legitimate governmental interest in protecting and strengthening the institution of marriage, and not to arbitrarily or invidiously exclude individuals from the protections of the laws of this state. . . . Because the marriage amendment does not make arbitrary or invidious distinctions in furthering the legitimate governmental interests of the state, does not violate the equal protection guarantee of the Michigan constitution. . . . The marriage amendment's plain language prohibits public employers from recognizing same-sex unions for any purpose.
In March 2005 Michigan Attorney General Mike Cox issued an opinion asserting that the amendment's language barred public employers from offering domestic partner benefits. After the lower court ruling, the Michigan Senate approved resolutions preventing taxpayer money from being spent on same-sex benefits until the state Supreme Court decides the issue. The ACLU of Michigan expressed disagreement with appeals court decision, claiming that the voters were told the amendment would not affect domestic partnership benefits, and said that an appeal to the state high court is planned. |
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Class action or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court and/or in which a class of defendants is being sued. This form of collective lawsuit originated in the United States and is still predominantly a U.S. phenomenon, at least the U.S. variant of it. In the United States federal courts, class actions are governed by Federal Rules of Civil Procedure Rule. Since 1938, many states have adopted rules similar to the FRCP. However, some states like California have civil procedure systems which deviate significantly from the federal rules; the California Codes provide for four separate types of class actions. As a result, there are two separate treatises devoted solely to the complex topic of California class actions. Some states, such as Virginia, do not provide for any class actions, while others, such as New York, limit the types of claims that may be brought as class actions. They can construct your law firm a brand new website, lawyer website templates and help you redesign your existing law firm site to secure your place in the internet. |
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