SEC v. Tidewater Inc. (E.D. La. 2010)

• Case Name
• SEC v. Tidewater Inc. (E.D. La. 2010)

• Date Filed
• 11/08/2010

• Enforcement Agency
• SEC

• Countries
• Azerbaijan, Nigeria

• Foreign Official
• Azeri tax officials; Nigerian customs officials.

• Date of Conduct
• 2001 to 2007

• Nature of Business
• Tidewater, Inc. (“Tidewater”) is a Delaware corporation that owns and operates offshore service and supply vessels that are chartered by energy exploration, development, and production companies.  

• Influence to be Obtained
• From 2001 to 2005, Tidewater allegedly made payments totaling approximately $160,000 to an entity in Dubai, knowing that the funds would go to tax officials in Azerbaijan to obtain favorable results in an audit of Tidewater’s Azeri offices.
  
  From 2002 to 2007, Tidewater allegedly reimbursed improper payments made by its Nigerian agent, “the Nigerian affiliate of a major international freight forwarding and customs clearing agent based in Switzerland,” to Nigerian customs officials.  While the SEC did not identify the Nigerian agent by name, the DOJ’s press release regarding its criminal action against Tidewater’s Panamanian subsidiary, Tidewater Marine International, Inc. (“TMII”), states that it was the Nigerian subsidiary of Panalpina World Transport (Holding) Ltd. (“Panalpina”).  These payments were made on behalf of Tidewater to circumvent certain regulations regarding the importation of Tidewater’s vessels in Nigerian waters.

• Enforcement
• On November 4, 2010, without admitting or denying the SEC’s findings, Tidewater consented to entry of an order requiring it to cease and desist from committing further violations of the anti‑bribery, books and records and internal control provisions of the FCPA and pay disgorgement of $8,321,000. 
  
  On the same day, TMII also entered into a deferred prosecution agreement with the DOJ.

• Amount of the Value
• Approximately $1.76 million.

• Amount of Business Related to Payment
• Approximately $6.62 million.

• Intermediary
• Freight forwarder, agent.

• Citizenship of Parent Entity
• United States

• Total Sanction
• $ 11,321,362

• Compliance Monitor
• No

• Reporting Requirements
• No

• Case is Pending?
• No

• Total Combined Monetary Sanction
• $ 18,671,362

• Related Enforcement Actions
• United States v. Tidewater Marine International, Inc. (S.D. Tex. 2010)
  

Tidewater Inc.

• Citation
• SEC v. Tidewater Inc., No. 2:10-cv-4180 (E.D. La. 2010).

• Date Filed
• 11/08/2010

• Filed Under Seal
• No

• FCPA Statutory Provision
• • 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