SEC v. Panalpina, Inc. (S.D. Tex. 2010)

• Case Name
• SEC v. Panalpina, Inc. (S.D. Tex. 2010)

• Date Filed
• 11/09/2010

• Enforcement Agency
• SEC

• Countries
• Angola, Brazil, Kazakhstan, Nigeria, Russia

• Foreign Official
• Nigerian Customs Service officials; Angolan customs, immigration, and military officials; Brazilian government officials in charge of customs and imports; Russian customs officials; Kazakh customs officials.

• Date of Conduct
• 2002 to 2007

• Nature of Business
• Panalpina, Inc., a New York corporation, is the U.S.-based subsidiary of Panalpina World Transport (Holding) Ltd., a global freight forwarding and logistics service firm based in Basel, Switzerland

• Influence to be Obtained
• Between 2002 and 2007, Panalpina, Inc. and its affiliates (collectively, “Panalpina”) allegedly paid bribes to customs officials in at least five different countries, on behalf of their customers, to circumvent local customs regulations. 
  
  In Nigeria, Panalpina allegedly bribed officials to circumvent temporary importation authorization regulations and to secure the release of goods from customs prior to the completion of the inspection process.  Panalpina also made payments on behalf of its customers to obtain improper benefits concerning customs and immigration matters.
  
  In Angola, Panalpina allegedly made illegal payments to Angolan officials on behalf of its customers to avoid fines, expedite or facilitate the approval or correction of incomplete or inaccurate documentation, avoid customs duties, circumvent Angolan immigration law, and illegally use military cargo aircraft to transport commercial goods.
  
  In Brazil, Panalpina allegedly made illegal payments to Brazilian officials on behalf of its customers to expedite the customs clearance process, avoid fines and penalties, and otherwise circumvent Brazilian customs requirements.
  
  In Russia and Kazakhstan, Panalpina allegedly made illegal payments to Russian and Kazakh officials on behalf of its customers to secure improper advantages with respect to customs, internal transportation, taxation, and labor‑related matters

• Enforcement
• On November 4, 2010, without admitting or denying the SEC’s findings, Panalpina, Inc. consented to entry of an order of judgment against it.  Under the order, Panalpina must cease and desist from violating the anti‑bribery provision of the FCPA, and from aiding and abetting the books and records provision and the internal controls provision of the FCPA.  Panalpina was also ordered to pay a disgorgement of $11,329,369. 
  
  Panalpina, Inc. and Panalpina World Transport (Holding) Ltd. settled related charges with the DOJ on November 4, 2010.  Also on November 4, 2010, three of Panalpina’s customers in the oil exploration and production industry pleaded guilty to and settled related charges with the DOJ and SEC. 

• Amount of the Value
• Approximately $49 million.

• Amount of Business Related to Payment
• Not Stated

• Intermediary
• Subsidiary and agent.

• Citizenship of Parent Entity
• United States

• Total Sanction
• $ 11,329,369

• Compliance Monitor
• No

• Reporting Requirements
• No

• Case is Pending?
• No

• Total Combined Monetary Sanction
• $ 81,889,369

• Related Enforcement Actions
• United States v. Panalpina World Transport (Holding) Ltd. (S.D. Tex. 2010)
  United States v. Panalpina, Inc. (S.D. Tex. 2010)
  

Panalpina, Inc. 

• Citation
• SEC v. Panalpina, Inc., No. 4:10-cv-4334 (S.D. Tex. 2010).

• Date Filed
• 11/09/2010

• Filed Under Seal
• No

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

• Other Statutory Provision
• None

• Disposition
• Complaint and Consent Order

• Defendant Jurisdictional Basis
• Issuer

• Defendant's Citizenship
• United States