The U.S. Securities and Exchange Commission charged a former
chief executive at Innospec Inc. (IOSP) with allegedly approving
bribes to government officials in Iraq to obtain and retain
business.
The agency alleges Paul W. Jennings first learned of the
chemical company's practice of paying bribes to win orders for
sales of tetraethyl lead in 2004 while serving as chief financial
officer. After becoming chief executive in 2005, Jennings and other
Innospec managers allegedly approved bribery payments to officials
at the Iraqi Ministry of Oil in order to sell the fuel additive to
Iraq refineries.
According to the SEC's complaint filed in District Court for the
District of Columbia, Jennings allegedly played "a key role" in
Innospec's bribery activities in Iraq and Indonesia. For example,
the SEC alleges Innospec made payments totaling more than $1.6
million and promised an additional $884,480 to Iraqi Ministry of
Oil officials. It was further alleged Jennings signed documents
where he falsely stated he complied with Innospec's Code of Ethics
incorporating the company's Foreign Corrupt Practices Act
policy.
Jennings has consented, without admitting or denying the SEC's
allegations, to the entry of a final judgment, and will disgorge
$116,092 plus prejudgment interest of $12,945. He will also pay a
penalty of $100,000 that takes into consideration Jennings's
cooperation in the matter.
The charges against Jennings are the third enforcement action
against an Innospec individual involving bribery allegations. The
company itself last year pleaded guilty to bribing Iraqi officials
and violating the U.S. embargo on Cuba as part of a $40.2 million
global settlement.
-By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com