A&O Shearman FCPA Digest | In re Helmerich & Payne, Inc. (2009)

Source Documents

Nature of Business
Helmerich & Payne, Inc. (“H&P”), a U.S. corporation, engages in the contract drilling of oil and gas wells in the United States and internationally.

Influence to be Obtained
Between 2003 and 2008, H&P’s Argentine and Venezuelan subsidiaries made approximately $173,000 in improper payments through their customs brokers to customs officials in Argentina and Venezuela to allow and to expedite the importation and exportation of equipment and materials that were not in compliance with the regulations of those countries. Those improper payments enabled the subsidiaries to avoid approximately $204,000 in expenses they would have incurred had they properly imported and exported the equipment and materials. The subsidiaries also made approximately $10,000 in facilitation payments. The customs brokers disguised the improper payments and the facilitation payments on their invoices to the subsidiaries.

Enforcement
On July 29, 2009, the DOJ and H&P entered into a 2-year non-prosecution agreement, under which H&P agreed to pay a fine of $1 million, to take remedial actions, and to make periodic reports to the DOJ regarding its compliance with the NPA. H&P also settled a related action with the SEC, consenting to a disgorgement of $375,681 including prejudgment interest.