United States v. Saybolt North America Inc. and Saybolt Inc. (D. Mass. 1998)
United States v. David H. Mead and Frerik Pluimers (D.N.J. 1998)

• Case Name
• United States v. Saybolt North America Inc. and Saybolt Inc. (D. Mass. 1998)
  United States v. David H. Mead and Frerik Pluimers (D.N.J. 1998)

• Date Filed
• 04/07/1998

• Enforcement Agency
• DOJ

• Countries
• Israel

• Foreign Official
• Officials of the government of the Republic of Panama.

• Date of Conduct
• 1994 to 1995

• Nature of Business
• Provision of executive management, financial management and administrative services to Saybolt-related companies in the western hemisphere, which perform quantitative and qualitative bulk commodities testing, by Saybolt Inc., Saybolt Western Hemisphere, Saybolt North America Inc., and Saybolt de Panama, S.A., each domestic concerns.

• Influence to be Obtained
• To obtain the following:  (i) contracts for Saybolt de Panama and its affiliates to perform import control and inventory inspections for the government of the Republic of Panama’s Ministry of Hydrocarbons and the Ministry of Commerce and Industries; (ii) expedited tax benefits for Saybolt de Panama and its affiliates from the government of the Republic of Panama, including exemptions from import taxes on oil materials and equipment and reductions in annual profit taxes; (iii) a secure and commercially attractive operating location for an inspection facility in Panama; and (iv) a lock-out of Saybolt’s competitors by retaining possession and control of Saybolt de Panama’s existing location in Panama.

• Enforcement
• Amount of fine.  For its data falsification violations, Saybolt Inc. was given a five-year probation term and ordered to pay a $3,400,000 fine and an $800 special assessment.  For their FCPA violations, Saybolt Inc. and Saybolt North America Inc. each were given a five-year probation term, held jointly and severally liable for a $1,500,000 fine, and ordered to pay an $800 special assessment.  Saybolt Inc. must also establish and maintain an effective compliance program regarding the operation of its qualitative inspection and testing services, subject to the Environmental Protection Agency’s review and approval.  Saybolt Inc. also entered into a cooperation agreement with the DOJ, promising its full cooperation in the investigation and prosecution of individuals responsible for its criminal conduct.  Furthermore, Saybolt was required to advertise in petroleum industry trade publications the terms of its guilty plea to data falsification charges.  David H. Mead was convicted and sentenced to four months of confinement, four months’ home detention, three years’ supervised probation and a $20,000 fine.  Frerik Pluimers is a fugitive.
  Individuals charged and their relationship with the business.  David H. Mead, a resident alien of the United States, was a president (Saybolt Inc.), a chief executive officer (Saybolt Inc. and Saybolt Western Hemisphere), a chief executive (Saybolt North America Inc.) and an executive vice president (Saybolt North America Inc.).  Frerik Pluimers, a national and resident of The Netherlands, was a chairman of the board of directors (Saybolt Inc. and Saybolt North America Inc.), a president (Saybolt North America Inc. and Saybolt International) and a chief executive officer (Saybolt International).  
  Other crimes charged.  Saybolt Inc. was also charged with conspiracy to falsify Clean Air Act reports and falsify test results, conspiracy to violate the FCPA and wire fraud.  In addition to violating the FCPA, Saybolt North America Inc. was charged with conspiracy to violate the FCPA.  Mead and Pluimers were charged with conspiracy to violate the FCPA, use of facility in foreign commerce in aid of racketeering, and aiding and abetting.
   

• Amount of the Value
• $50,000 from funds controlled by Saybolt International (The Netherlands) to fund the payment to an intermediary of Republic of Panama government officials.

• Amount of Business Related to Payment
• Not Stated.

• Intermediary
• Person acting as an intermediary for senior officials of the government of the Republic of Panama.

• Compliance Monitor
• No

• Reporting Requirements
• No

• Case is Pending?
• No

Saybolt North America Inc.

• Citation
• United States v. Saybolt N. Am. Inc., No. 98-cr-10266 (D. Mass. 1998);

• Date Filed
• 04/17/1998

• Filed Under Seal
• No

• FCPA Statutory Provision
• • Anti-Bribery
  • Conspiracy: Anti-Bribery

• Other Statutory Provision
• Conspiracy (Destroy, Falsify, or Alter Records); Wire Fraud.

• Disposition
• Plea Agreement

• Defendant Jurisdictional Basis
• Domestic Concern, Conspiracy, Aiding and Abetting

• Defendant's Citizenship
• United States

• Individual Sanction
• $1,500,800.

Saybolt Inc. 

• Citation
• United States v. Saybolt N. Am. Inc., No. 98-cr-10266 (D. Mass. 1998);

• Date Filed
• 04/17/1998

• Filed Under Seal
• No

• FCPA Statutory Provision
• • Anti-Bribery
  • Conspiracy: Anti-Bribery

• Other Statutory Provision
• Conspiracy (Destroy, Falsify, or Alter Records); Wire Fraud.

• Disposition
• Plea Agreement

• Defendant Jurisdictional Basis
• Domestic Concern, Conspiracy

• Defendant's Citizenship
• United States

• Individual Sanction
• $4,901,600

David H. Mead

• Citation
• United States v. Mead, No. 98-cr-240 (D.N.J. 1998).

• Date Filed
• 04/17/1998

• Filed Under Seal
• No

• FCPA Statutory Provision
• • Aiding and Abetting: Anti-Bribery
  • Anti-Bribery
  • Conspiracy: Anti-Bribery

• Other Statutory Provision
• Conspiracy (Travel Act); Aiding and Abetting (Travel Act); Travel Act.

• Disposition
• Convicted

• Defendant Jurisdictional Basis
• Domestic Concern, Conspiracy, Aiding and Abetting, Agent of Domestic Concern

• Defendant's Citizenship
• United States, United Kingdom

• Individual Sanction
• 4-Months Imprisonment; $20,000 Criminal Fine.

Frerik Pluimers

• Citation
• United States v. Mead, No. 98-cr-240 (D.N.J. 1998).

• Date Filed
• 04/17/1998

• Filed Under Seal
• No

• FCPA Statutory Provision
• • Aiding and Abetting: Anti-Bribery
  • Anti-Bribery
  • Conspiracy: Anti-Bribery

• Other Statutory Provision
• Conspiracy (Travel Act); Aiding and Abetting (Travel Act); Travel Act.

• Disposition
• Charges Dismissed

• Defendant Jurisdictional Basis
• Conspiracy, Aiding and Abetting, Agent of Domestic Concern

• Defendant's Citizenship
• Netherlands

• Individual Sanction
• None