SEC v. Bobby Benton (S.D. Tex. 2009)
SEC v. Joe Summers (S.D. Tex. 2010)
Case Details
- Case Name
- SEC v. Bobby Benton (S.D. Tex. 2009)
SEC v. Joe Summers (S.D. Tex. 2010)
- Countries
- Mexico, Venezuela
- Foreign Official
- Official of Petróleos de Venezuela S.A. and Mexican customs officials
- Date of Conduct
-
2003 to 2005
- Nature of Business
- Provision of drilling services for oil and gas wells by Pride International, Inc. (“Pride”), a Houston-based corporation which provides offshore drilling services. Bobby Benton, a U.S. citizen, was Vice President of Western Hemisphere Operations for Pride. Joe Summers, a U.S. citizen, was Pride’s Country Manager for Venezuela.
- Influence to be Obtained
- The SEC alleges that in December 2004, Benton authorized the bribery of a Mexican customs official in the amount of $10,000 in return for overlooking customs deficiencies identified during an inspection of a boat transporting Pride equipment. Benton allegedly had knowledge of a second bribe totaling approximately $15,000 paid to a different Mexican customs official that same month to ensure that customs violations would not delay the export of a jack-up rig from Mexico.
The SEC alleges that between 2003 and 2005, Summers authorized or allowed payments of $384,000 to third‑party companies believing that all or a portion of the funds would be given to an official at Petróleos de Venezuela S.A., Venezuela’s state‑owned oil company, in exchange for the extension of three drilling contracts. The SEC also alleges that Summers authorized an additional payment of $30,000 to a third party believing that all or a portion of the funds would be given to an employee at Petróleos de Venezuela S.A. to obtain payment of receivables. In an effort to conceal the bribes, Benton allegedly redacted references to the Venezuelan payments in an action plan responding to an internal audit report, and the payments were recorded as payments for goods and services received from the vendors or as marketing commission payments.
Pride is involved in an ongoing investigation into its FCPA‑related practices.
- Enforcement
- On December 12, 2009, the SEC filed a complaint alleging Benton violated the anti‑bribery, books and records, and internal controls provisions of the FCPA, and aided and abetted the violation of the anti‑bribery, books and records, and internal controls provisions of the FCPA. On August 9, 2010, without admitting or denying the SEC’s allegations in the complaint, Benton consented to the entry of a permanent injunction against future violations and was ordered to pay a civil penalty in the amount of $40,000.
On August 5, 2010, the SEC filed a complaint alleging Summers violated the anti‑bribery, books and records, and internal controls provisions of the FCPA, and aided and abetted the violation of the anti‑bribery and books and records and internal controls provisions of the FCPA. On the same day, without admitting or denying the SEC’s allegations in the complaint, Summers consented to the entry of a permanent injunction against future violations and a civil penalty of $25,000.
- Amount of the Value
- Approximately $439,000.
- Amount of Business Related to Payment
- Not Stated
- Citizenship of Parent Entity
- United States
- Reporting Requirements
- No
- Total Combined Monetary Sanction
- $ 65,000
Defendants
Bobby Benton
- Citation
- SEC v. Benton, No. 4:09 cv 03963 (S.D. Tex. 2010);
- FCPA Statutory Provision
-
- Aiding and Abetting: Anti-Bribery
- Aiding and Abetting: Books-and-Records
- Aiding and Abetting: Internal Controls
- Other Statutory Provision
- Circumvention of Internal Controls/Falsification of Books and Records; False Representations to Accountants (Exchange Act Rule 13b2-2)
- Disposition
- Complaint and Consent Order
- Defendant Jurisdictional Basis
- Agent of Issuer
- Defendant's Citizenship
- United States
- Individual Sanction
- $40,000
Joe Summers
- Citation
- SEC v. Summers, No. 4:10-cv-02786 (S.D. Tex. 2010).
- FCPA Statutory Provision
-
- Aiding and Abetting: Anti-Bribery
- Aiding and Abetting: Books-and-Records
- Aiding and Abetting: Internal Controls
- Other Statutory Provision
- Circumvention of Internal Controls/Falsification of Books and Records;
- Disposition
- Complaint and Consent Order
- Defendant Jurisdictional Basis
- Agent of Issuer
- Defendant's Citizenship
- United States
- Individual Sanction
- $25,000
