A&O Shearman FCPA Digest | United States v. Mace (S.D. Tex. 2017)<br /> United States v. Zubiate (S.D. Tex. 2017)

Source Documents

Case Name
United States v. Mace (S.D. Tex. 2017)
United States v. Zubiate (S.D. Tex. 2017)

Foreign Official
Unnamed officials from Brazilian state energy company; Unnamed officials from Angolan state oil companies; Unnamed officials at an Equatorial Guinean government agency and state oil company.

Nature of Business
SBM Offshore N.V. (“SBM”) is a Netherlands-based company specializing in the manufacture and design of offshore oil drilling equipment. SBM Offshore USA, Inc. (“SBM USA”) is a wholly owned subsidiary of SBM based in the United States. Anthony Mace, a U.K. citizen, was SBM’s CEO from 2008 to 2011, and a former board member of one of its wholly-owned Houston subsidiaries. Robert Zubiate, a U.S. citizen, was a former Texas and California-based sales and marketing executive at SBM USA.

Influence to be Obtained
According to the Information, beginning in around 1996, SBM, SBM USA, and various executives, employees, and sales agents entered into an agreement to pay bribes to foreign officials, including officials at Petrobras, Sonangol, and GEPetrol, the national oil companies of Brazil, Angola, and Equatorial Guinea, respectively. These payments were designed to obtain and retain business for SBM Offshore. The bribes were allegedly paid primarily through two intermediaries and shell companies controlled by the intermediaries, and the bribes continued through 2012.

Enforcement
On October 6, 2017, the DOJ filed a criminal information in the Southern District of Texas against Robert Zubiate alleging one count of conspiracy to violate the anti-bribery provisions of the FCPA. Zubiate pleaded guilty to the charge on November 6, 2017, and is scheduled to be sentenced on January 31, 2018.

On October 19, 2017, the DOJ filed a criminal information in the Southern District of Texas against Mace alleging one count of conspiracy to violate the anti-bribery provisions of the FCPA. On November 9, 2017, Mace entered into a plea agreement with the government. Mace is scheduled to be sentenced on February 8, 2018.

In a related action, on November 29, 2017, the DOJ announced that it had entered into a DPA with SBM for violations of the FCPA’s anti-bribery provision. According to the DPA, SBM agreed to pay a total monetary penalty of $238 million.