Paradigm’s current management first learned of the improper payments while conducting due diligence in preparation for listing its shares on U.S. stock exchanges. It thereafter retained counsel to conduct an internal investigation, implemented a new compliance program, and made a voluntary disclosure to the DOJ. According to the pleadings, Paradigm made the following payments for the following purposes:
-
Kazakhstan: Paradigm made a payment into the Latvian bank account of a British West Indies company recommended as a consultant by a KazMunaiGas official to secure a tender in Kazakhstan for geological software.
-
China: Paradigm’s subsidiary used an agent in China to make commission payments to representatives of Zhonghai Petroleum (China) Co., Ltd., a subsidiary of the China National Offshore Oil Company (“CNOOC”), in connection with the sale of software. In addition, the company directly retained Chinese national oil and gas companies’ employees as “internal consultants” to evaluate Paradigm’s software, to influence procurement decisions, and to inspect and accept delivered software. These “internal consultants” were paid in cash. Finally, the company paid for travel, including sightseeing trips, for the “internal consultants” and other employees of the Chinese national oil and gas companies.
-
Nigeria: Paradigm agreed to make payments through an agent to politicians to obtain a services contract with Integrated Data Services Limited, a subsidiary of the Nigerian National Petroleum Corp. (“NNPC”), but did not get the contract.
-
Mexico: Paradigm used an agent in connection with a subcontract with the Mexican Bureau of Geophysical Contracting (“BGP”), without a written agency agreement. The agent requested his commission payments be paid through five different entities. Paradigm Mexico also took a decision-maker of Pemex, Mexico’s national oil company, accompanied by the agent in the BGP deal, on a birthday trip to Napa Valley, California, in connection with another contract, and also spent large sums entertaining the same person at other times. Paradigm Mexico hired this official’s brother as a driver. The official then awarded a third contract with another branch of Pemex to Paradigm.
-
Indonesia: Paradigm used an agent who was involved in making payments “for the purpose of obtaining or retaining business” from Pertamina, the national oil company.
