On February 16, 2011, KBR’s wholly-owned subsidiary, M.W. Kellogg Limited (MWKL) settled civil corruption charges with the U.K. Serious Fraud Office (SFO). The conduct at issue related to contracts for work on Nigeria’s Bonny Island project and the TSKJ joint venture. The SFO acknowledged that MWKL took no part in any of the criminal activity but stated that it received share dividends payable from profits and revenues generated by contracts obtained by bribery and corruption undertaken by MWKL's parent company and others. In order to settle the charges, MWKL agreed to pay $11,238,886 (£7,000,028). This fine is similar to an SEC-imposed disgorgement remedy and represents the total MWKL received as a result of the illicit conduct.
The SFO stated that MWKL self-reported concerns to the SFO under the "self referral" scheme and fully co-operated with the subsequent investigation. The SFO, working in partnership with the US Department of Justice, reviewed the conduct of MWKL and decided that the most appropriate approach was to remove the funds obtained through the unlawful conduct. This reflects the finding that MWKL was not a willing participant in the corruption.
For more information on the underlying conduct, please see our previous posts.
Related enforcement actions: