Former CEO of Innospec Charged for Role in Bribery Scheme

  • Date: January 27, 2011
  • Source: Admin

The Securities & Exchange Commission (SEC) on Jan 24, 2011 charged a former CEO of Innospec, Inc., with violating the Foreign Corrupt Practices Act (FCPA) by approving bribes to government officials to mobilize and retain business.  Innospec is a manufacturer and distributor of fuel additives and other specialty chemicals.  

According to SEC, Paul W Jennings, when he was the CFO, knew of his company’s practice of paying bribes to bag orders for sale of tetraethyl lead (TEL) during the period mid-2004 to late-2004.  After be-coming the CEO in 2005, he and others from the management approved bribery payments to officials of the Iraqi Ministry of Oil (MoO) to bag orders.  The company released the payments through its third-party agent in Iraq.

Regulations and Innospec’s Violations

SEC will act against individuals who commit bribery and sign false SOX certifications and other docu-ments to cover up the wrongdoing.

The SEC's complaint alleges that from 2004 to February 2009, Jennings signed annual certifications that were provided to auditors where he falsely stated that he had complied with Innospec's Code of Ethics incorporating the Company's FCPA policy. Jennings also signed annual and quarterly personal certifica-tions pursuant to the Sarbanes-Oxley Act of 2002 in which he made false certifications concerning the company's books and records and internal controls.

Jennings has consented, without admitting or denying the SEC's allegations, to the entry of a final judgment that permanently enjoins him from violating Sections 30A and 13(b) (5) of the Securities Exchange Act of 1934 and Rules 13a-14, 13b2-1 and 13b2-2 there under, and from aiding and abetting Innospec's violations of Exchange Act Sections 30A, 13(b) (2) (A) and 13(b)(2)(B). Jennings will disgorge USD 116,092 plus prejudgment interest of USD 12,945, and pay a penalty of USD 100,000 that takes into consideration Jennings's cooperation in this matter.




Bookmark and Share
Best Sellers
You Recently Viewed