Textron Inc. Settles Iraqi Oil For Food Matter, Including FCPA Books and Records and Internal Control Charges

In August 2007, Textron Inc., a Rhode Island industrial equipment company, agreed to pay approximately $4.65 million in combined fines and penalties to settle DOJ and SEC enforcement actions. The primary conduct at issue involved approximately $650,000 in improper kickback payments made by two Textron fifth-tier French subsidiaries via third-party representatives in Iraq in connection with the sale of humanitarian goods to Iraq under the U.N. Oil for Food Program. The kickbacks were made in the form of “after-sales-service fees” and “funded” through inflated contracts. In addition, the government alleged that Textron’s subsidiaries made approximately $115,000 in improper payments in the United Arab Emirates, Bangladesh, Indonesia, Egypt and India. Like the “after-sales-service fees” at issue in Iraq, the additional improper payments were made to secure contracts and not for any bona fide service performed.

• View the full complaint
• View the full summary from the U.S. Securities and Exchange Commission
• View the full summary from the U.S. Department of Justice
• View the Non-prosecution document from the U.S. Department of Justice