SEC v. Triton Energy Corporation, Philip W. Keever, and Richard L. McAdoo (D.D.C. 1997)

• Case Name
• SEC v. Triton Energy Corporation, Philip W. Keever, and Richard L. McAdoo (D.D.C. 1997)

• Date Filed
• 02/27/1997

• Enforcement Agency
• SEC

• Countries
• Indonesia

• Foreign Official
• Various officials of the Indonesian government, including government auditors and tax collectors.

• Date of Conduct
• 2017

• Nature of Business
• Triton Energy Corporation, a Delaware corporation, engages in the exploration and production of crude oil and natural gas, and its common stock is registered with the SEC pursuant to Section 12(b) of the Exchange Act. Triton Energy’s wholly owned subsidiary, Triton Indonesia, Inc., operated an oil and gas recovery project in Indonesia.
   
  Philip W. Keever was employed by Triton Indonesia in various positions during the relevant time, including Commercial Manager, Vice President and General Manager, and President and General Manager. Richard L. McAdoo was the Vice President and General Manager of Triton Indonesia.

• Influence to be Obtained
• The SEC alleges that Triton Indonesia, with the authorization of Keever and McAdoo, made numerous payments to Roland Siouffi, a local business agent. Siouffi then directed these payments to Indonesian officials for the purpose of, among other things, (i) obtaining a favorable decision from tax auditors reducing Triton Indonesia’s tax liability relating to technical service fees; (ii) obtaining from auditors a favorable final report and cost certification for the 1988 and 1989 annual audits; (iii) obtaining both a decision from the Indonesian government that Triton Indonesia was in a nontaxable position and a refund of a previously paid corporate tax; (iv) obtaining a refund on previous value added tax payments; and (v) obtaining a favorable decision to revise rates paid under a pipeline tariff and procure a refund of the purported overpayment.
   
  According to the SEC, Triton Indonesian employees created false documents to hide the improper payments’ true purpose. The payments were recorded as legitimate expenses in Triton Indonesia’s books and records.

• Enforcement
• The SEC filed a civil injunction action against Triton Energy, Philip Keever, and Robert McAdoo. The SEC sought to enjoin Triton Energy Corp., Keever and McAdoo from future violations and to recover monetary penalties. Triton Energy Corp. consented to an injunction against future violations and to pay a $300,000 penalty. Keever and McAdoo consented to similar injunctions and to pay a $50,000 and $35,000 penalty, respectively. In a related action, four other former Triton Energy Corp. executives consented to a cease-and-desist order enjoining them from causing any further violations.

• Amount of the Value
• $287,500.

• Amount of Business Related to Payment
• Not stated

• Intermediary
• Roland Siouffi, Triton Indonesia’s business agent.

• Citizenship of Parent Entity
• United States

• Total Sanction
• $ 300,000

• Compliance Monitor
• No

• Reporting Requirements
• No

• Case is Pending?
• No

• Total Combined Monetary Sanction
• $ 300,000

Triton Energy

• Date Filed
• 02/27/1997

• Filed Under Seal
• No

• FCPA Statutory Provision
• • Anti-Bribery
  • Books-and-Records
  • Internal Controls

• Other Statutory Provision
• None

• Disposition
• Complaint and Consent Order

• Defendant Jurisdictional Basis
• Issuer

• Individual Sanction
• $300,000

Philip W. Keever

• Citation
• SEC v. Triton Energy Corp.et al., No. 1:97-cv-00401 (D.D.C. 1997).

• Date Filed
• 02/27/1997

• Filed Under Seal
• No

• FCPA Statutory Provision
• • Anti-Bribery
  • Books-and-Records
  • Internal Controls

• Other Statutory Provision
• None

• Disposition
• Complaint and Consent Order

• Defendant Jurisdictional Basis
• Agent of Issuer

• Individual Sanction
• $50,000

Richard L. McAdoo

• Citation
• SEC v. Triton Energy Corp.et al., No. 1:97-cv-00401 (D.D.C. 1997).

• Date Filed
• 06/26/1997

• Filed Under Seal
• No

• FCPA Statutory Provision
• • Anti-Bribery
  • Books-and-Records
  • Internal Controls

• Other Statutory Provision
• None

• Disposition
• Complaint and Consent Order

• Defendant Jurisdictional Basis
• Agent of Issuer

• Individual Sanction
• $35,000