In the Matter of PBSJ Corporation (2015)
In the Matter of Waleed Hatoum (2015)

• Case Name
• In the Matter of PBSJ Corporation (2015)
  In the Matter of Waleed Hatoum (2015)

• Date Filed
• 01/22/2015

• Enforcement Agency
• SEC

• Countries
• Qatar

• Foreign Official
• Former Director of International Projects at Qatari Diar Real Estate Investment Company. 

• Date of Conduct
• 2009

• Nature of Business
• PBSJ Corporation was an engineering and construction firm based in Tampa, Florida.  PBS&J International, Inc. (“PBS&J Int’l’) was a wholly owned subsidiary of PBSJ which provided engineering services in international markets, including the Middle East.  During the relevant period, PBS&J’s common stock was registered pursuant to Section 12(g) of the Securities Exchange Act of 1934 and PBSJ filed annual and quarterly reports under Section 13(a) of the Exchange Act.  Walid Hatoum, a United States citizen, is a former employee and President of PBS&J Int’l.

• Influence to be Obtained
• According to the SEC’s cease-and-desist order, in 2009 PBS&J Int’l won a pair of multi-million dollar development project contracts in Qatar and Morocco.  Both projects were solicited through a competitive bidding process with the Qatari Diar Real Estate Investment Company—an agency of the Qatari government for the development of real estate investments.  The SEC claims that the two projects were facilitated by the efforts of a PBSJ employee, and later President of PBS&J Int’l, Walid Hatoum.  Hatoum allegedly arranged for PBS&J Int’l to bid on the two Qatari Diar projects by partnering with a local subcontractor (“Local Partner”) in charge of managing the project’s local operations.  The SEC explains that, unbeknownst to PBSJ, the Local Partner was owned and controlled by the Director of the Qatari Diar.  According to the SEC, as part of the arrangement, Hatoum planned to use the Local Partner as a conduit to funnel bribes to the then-Director of the Qatari Diar, agreeing to share 40% of the project profits with the Local Partner and to pay the Partner “agency fees” for the successful tenders.  Additionally, PBS&J agreed to pay half of the salary of the Director’s wife, who worked for the Local Partner.  In exchange, the Director allegedly provided PBS&J Int’l with confidential bid information to assist PBS&J Int’l to win both contracts.
  
  While the SEC contends that the PBSJ employees who oversaw the bid process were never aware of the scheme, the SEC claims that they ignored significant red-flags, including the fact that PBS&J Int’l was being given confidential bid information; the fact that Hatoum described the Director of the Qatari Diar as a good friend; and the fact that a PBS&J Int’l employee was aware that the husband of one of the Local Partner’s employees was a government official.  According to the SEC, had PBSJ conducted “meaningful due diligence” it would have discovered the Director’s role as a Qatari Diar official and owner of the Local Partner.

• Enforcement
• On January 22, 2014 the SEC announced that it entered into a deferred prosecution agreement with WS Atkins, the corporate parent of PBSJ.  WS Atkins acquired PBSJ in October 2010, after the conduct in issue took place.  In the agreement, Atkins, on behalf of PBSJ, agreed to pay a total sanction of $3,407,875.  On the same day, the SEC announced that it settled charges against Hatoum for violations of the FCPA’s anti-bribery provision, books-and-records, and internal controls provisions.  As part of the settlement, Hatoum agreed to pay a civil penalty of $50,000.  

• Amount of the Value
• $1,390,000.

• Amount of Business Related to Payment
• $60,600,000.

• Intermediary
• Local Partner.

• Citizenship of Parent Entity
• United States

• Total Sanction
• $ 3,407,875

• Compliance Monitor
• No

• Reporting Requirements
• No

• Case is Pending?
• No

• Total Combined Monetary Sanction
• $ 3,407,875

PBSJ Corporation 

• Citation
• In the Matter of PBSJ Co. (Jan. 22 2015); 

• Date Filed
• 01/22/2015

• Filed Under Seal
• No

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

• Other Statutory Provision
• None

• Disposition
• Deferred Prosecution Agreement

• Defendant Jurisdictional Basis
• Issuer

• Defendant's Citizenship
• United States

Waleed Hatoum 

• Citation
• In the Matter of Walid Hatoum, Admin. Proc. File No. 3-16352 (Jan. 22, 2015).

• Date Filed
• 01/22/2015

• Filed Under Seal
• No

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

• Other Statutory Provision
• None

• Disposition
• Cease-and-Desist Order

• Defendant Jurisdictional Basis
• Agent of Issuer

• Defendant's Citizenship
• United States