United States v. Keppel Offshore & Marine Ltd. (E.D.N.Y. 2017)
United States v. Keppel Offshore & Marine USA, Inc. (E.D.N.Y. 2017)
United States v. Jeffrey Chow (E.D.N.Y. 2017)

• Case Name
• United States v. Keppel Offshore & Marine Ltd. (E.D.N.Y. 2017)
  United States v. Keppel Offshore & Marine USA, Inc. (E.D.N.Y. 2017)
  United States v. Jeffrey Chow (E.D.N.Y. 2017)

• Date Filed
• 08/22/2017

• Enforcement Agency
• DOJ

• Countries
• Brazil

• Foreign Official
• Unnamed government officials in Brazil, including at Brazil’s state-controlled oil company, Petrobras, and the Workers’ Party.

• Date of Conduct
• 2001 to 2014

• Nature of Business
• Keppel Offshore & Marine Ltd. (“KOM”), a Singapore corporation, operated shipyards in around the world, including in Asia and Europe, and built mobile offshore drilling rigs and repaired, converted, and upgraded shipping vessels.  Keppel Offshore & Marine, USA Inc. (“KOM USA”), KOM’s wholly owned Delaware-incorporated subsidiary, operated in Houston, Texas.  During the relevant period of time, KOM USA was a “domestic concern” under the FCPA.  Jeffery Chow, a United States citizen, held various positions in KOM’s legal department including General Manager and Director.

• Influence to be Obtained
• According to the DOJ, from 2001 and 2014, KOM and KOM USA executives participated in a scheme to make approximately $55 million in improper payments to officials in Brazil at the state-controlled oil company, Petrobras, and other officials and political parties to obtain or retain business connected to thirteen projects.  To disguise the illegal payments, KOM and KOM USA entered into agreements with a consultant and made payments to shell companies owned by the consultant, which he would then allegedly pass on to the Brazilian officials.

• Enforcement

• On December 22, 2017, the DOJ entered into a deferred prosecution agreement with KOM for conspiracy to violate the FCPA’s anti-bribery provisions.  Pursuant to the deferred prosecution agreement, KOM agreed to pay a total criminal monetary penalty in the amount of $422,216,980, of which $105,554,245 will be paid to the United States.  Brazil will receive $211,108,490, or 50% of the total criminal penalty, and Singapore will receive the remaining $105,554,245 – marking the first coordinated FCPA enforcement action with Singapore.

  On the same day, KOM USA pleaded guilty to one count of conspiracy to violate the FCPA’s anti-bribery provisions, and agreed to pay a criminal penalty of $4,725,000, which KOM will pay as part of the total criminal penalty.

  On the same day, the DOJ also unsealed charges against Jeffery Chow, KOM’s former General Counsel.  Chow pleaded guilty to one count of conspiracy to violate the FCPA on August 29, 2017.  On November 2019, Chow was sentenced to one-year probation and was ordered to pay a monetary fine of $75,000.

• Amount of the Value
• $55,000,000.

• Amount of Business Related to Payment
• Approximately $351,000,000 in profits.

• Intermediary
• Consultant.

• Citizenship of Parent Entity
• Singapore

• Total Sanction
• $ 527,846,225

• Compliance Monitor
• No

• Reporting Requirements
• Yes (3 Years)

• Case is Pending?
• No

• Total Combined Monetary Sanction
• $ 527,846,225

Keppel Offshore & Marine Ltd. 

• Citation
• United States v. Keppel Offshore & Marine Ltd., No. 17-cr-697 (E.D.N.Y. 2017); 

• Date Filed
• 12/22/2017

• Filed Under Seal
• No

• FCPA Statutory Provision
• • Conspiracy: Anti-Bribery

• Other Statutory Provision
• None

• Disposition
• Deferred Prosecution Agreement

• Defendant Jurisdictional Basis
• Agent of Domestic Concern

• Defendant's Citizenship
• Singapore

• Individual Sanction
• $105,554,245

Keppel Offshore & Marine USA, Inc.

• Citation
• United States v. Keppel Offshore & Marine USA, Inc., No.17-cr-698 (E.D.N.Y. 2017);

• Date Filed
• 12/22/2017

• Filed Under Seal
• No

• FCPA Statutory Provision
• • Conspiracy: Anti-Bribery

• Other Statutory Provision
• None

• Disposition
• Plea Agreement

• Defendant Jurisdictional Basis
• Domestic Concern

• Defendant's Citizenship
• United States

• Individual Sanction
• $105,554,245

Jeffrey Chow 

• Citation
• United States v. Jeffery Chow, No 1:17-cr-00466 (E.D.N.Y. 2017).

• Date Filed
• 08/29/2017

• Filed Under Seal
• Yes

• Date Case Was Unsealed
• 12/22/2017
  

• FCPA Statutory Provision
• • Conspiracy: Anti-Bribery

• Other Statutory Provision
• None

• Disposition
• Plea Agreement

• Defendant Jurisdictional Basis
• Domestic Concern

• Defendant's Citizenship
• United States

• Individual Sanction
• $75,000