A&O Shearman FCPA Digest | United States v. Jim Bob Brown (S.D. Tex. 2006)

Source Documents

Foreign Official
Officials of Nigerian Petroleum Corporation; Nigerian Tax Officials; Nigerian Court Officials; Officials of PetroEcuador.

Nature of Business
Procurement of contracts for oil and gas pipeline construction projects by Willbros International Inc. (“Willbros International”), a wholly-owned subsidiary of Willbros Group, Inc. (“Willbros Group”). Willbros is a Panamanian corporation listed on the New York Stock Exchange. Jim Bob Brown (“Brown”), a former employee of Willbros International, was a managing director of Nigerian and South American subsidiary operations of Willbros International from 2000 until his termination in 2005.

Influence to be Obtained
Payments were made by Willbros International consultants to foreign officials at the Nigerian and Ecuadorian government-owned oil companies to obtain oil and gas pipeline construction business. The payments in Nigeria were part of a larger multi-million dollar bribery scheme involving a former senior Willbros executive, a U.S. national acting as a purported “consultant,” and Nigeria-based employees of a major German construction and engineering firm. Payments dating back to 1996 were also made to influence tax and court officials in Nigeria for favorable treatment for tax assessments and litigation.

Enforcement
Pursuant to a Plea Agreement executed September 14, 2006, Brown pleaded guilty to the one-count information charging conspiracy to violate the FCPA by bribing Nigerian and Ecuadorian officials. Under the terms of his plea, Brown agreed to cooperate with the government in its ongoing investigation connected to Willbros. On January 28, 2010, the court sentenced Brown to 12 months and 1 day of imprisonment, supervised release of 2 years, a criminal fine of $17,500, and an assessment of $100.