SEC v. Tesoro Petroleum Corp. (D.D.C. 1980)

• Case Name
• SEC v. Tesoro Petroleum Corp. (D.D.C. 1980)

• Date Filed
• 11/20/1980

• Enforcement Agency
• SEC

• Foreign Official
• Unnamed foreign government officials.

• Date of Conduct
• pre-1975 to 1980

• Nature of Business
• Tesoro Petroleum Corp. (“Tesoro”) is a Delaware corporation engaged in the exploration, development, production, purchase, and sale of oil and gas in over thirty countries, worldwide.  During the relevant period of time, its common stock was registered with the SEC pursuant to Section 12(b) of the Exchange Act. 

• Influence to be Obtained
• The SEC alleged that from 1968 to 1980, Tesoro made improper payments to various consultants that were disproportionate with the business obtained or the services provided.  According to the SEC, Tesoro made these payments in connection with its efforts to obtain multi-million dollar contracts and foreign oil and gas concessions from foreign governments, and it was likely that some of the improper payments were paid to foreign government officials.  Tesoro could not verify the final disposition of the funds due to its lack of internal controls or proper record-keeping.   

• Enforcement
• On November 20, 1980, Tesoro consented to the entry of a permanent injunction prohibiting future violations of the FCPA, without admitting or denying any of the SEC’s allegations.  In addition, Tesoro agreed to appoint a new director who would be satisfactory to the SEC and undertook to keep accurate books and records.

• Amount of the Value
• Not Stated

• Amount of Business Related to Payment
• Multimillion-dollar contracts.

• Intermediary
• Foreign finder/consultant.

• Citizenship of Parent Entity
• United States

• Compliance Monitor
• No

• Reporting Requirements
• No

• Case is Pending?
• No

Tesoro Petroleum Corp. 

• Citation
• SEC v. Tesoro Petroleum Corp., No. 80-cv-2961 (D.D.C. 1980).

• Date Filed
• 11/20/1980

• Filed Under Seal
• No

• FCPA Statutory Provision

• Other Statutory Provision
• False Report to Regulators (Securities Exchange Act Section 13(a)); False Proxy Statement (Securities Exchange Act Section 14(a)).

• Disposition
• Complaint and Consent Order

• Defendant Jurisdictional Basis
• Issuer

• Defendant's Citizenship
• United States

• Individual Sanction
• None