In the Matter of Helmerich & Payne, Inc. (2009)

• Case Name
• In the Matter of Helmerich & Payne, Inc. (2009)

• Date Filed
• 07/30/2009

• Enforcement Agency
• SEC

• Countries
• Argentina, Venezuela

• Foreign Official
• Argentine and Venezuelan customs officials.

• Date of Conduct
• 2003 to 2008

• 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 allegedly made approximately $185,673 in improper payments through their customers’ brokers to customs officials in Argentina and Venezuela to allow and expedite the importation and exportation of equipment and materials that were not in compliance with the regulations of those countries.  According to the SEC, those improper payments enabled the subsidiaries to avoid approximately $320,604 in expenses they would have incurred had they properly imported and exported the equipment and materials.  The customs brokers allegedly disguised the improper payments on their invoices to the subsidiaries.

• Enforcement
• On July 30, 2009, without admitting or denying the SEC’s findings, H&P consented to entry of an order of judgment against it.  Under the order, H&P must cease and desist from committing books and records and internal controls FCPA violations and pay disgorgement of $375,681 including prejudgment interest.  H&P also entered into a 2‑year non‑prosecution agreement with the DOJ, under which it agreed to pay a fine of $1 million and to take remedial actions.

• Amount of the Value
• Approximately $185,673.

• Amount of Business Related to Payment
• Approximately $320,604 in avoided customs‑related costs.

• Intermediary
• Customs Brokers

• Citizenship of Parent Entity
• United States

• Total Sanction
• $ 375,681

• Compliance Monitor
• No

• Reporting Requirements
• No

• Case is Pending?
• No

• Total Combined Monetary Sanction
• $ 1,375,681

• Related Enforcement Actions
• In re Helmerich & Payne, Inc. (2009)
  

Helmerich & Payne, Inc.

• Citation
• In the Matter of Helmerich & Payne, Inc., Admin. Proc. File No. 3-13565 (July 30, 2009).

• Date Filed
• 07/30/2009

• Filed Under Seal
• No

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

• Other Statutory Provision
• None

• Disposition
• Cease-and-Desist Order

• Defendant Jurisdictional Basis
• Issuer

• Defendant's Citizenship
• United States