Weatherford International Limited, FCPA Violations, New York 2024

Weatherford International Limited, a Swiss oil services company, has agreed to plead guilty to FCPA violations and export control charges. The company and its subsidiaries will pay over $252 million in penalties and fines.

The investigation, led by Acting Assistant Attorney General Mythili Raman, U.S. Attorney Kenneth Magidson, and Assistant Director in Charge Valerie Parlave, found that Weatherford’s subsidiaries engaged in bribery and pay-offs to obtain contracts, creating an uneven marketplace and putting honest competitors at a disadvantage.

Weatherford Services Limited, a subsidiary of Weatherford International, has agreed to plead guilty to violating the anti-bribery provisions of the FCPA. Weatherford International itself has agreed to pay an $87.2 million criminal penalty as part of a deferred prosecution agreement.

In a separate matter, Weatherford International and four of its subsidiaries have agreed to pay a combined $100 million to resolve a criminal and administrative export controls investigation. The company has also agreed to enter into a deferred prosecution agreement for a term of two years.

The U.S. Securities and Exchange Commission (SEC) has also filed a settlement with Weatherford International, requiring the company to pay $65,612,360 in disgorgement, prejudgment interest, and civil penalties.

The combined investigations have resulted in the conviction of three Weatherford subsidiaries, the entry by Weatherford International into two deferred prosecution agreements and a civil settlement, and the payment of over $252 million in penalties and fines.

According to Acting Assistant Attorney General Raman, effective internal accounting controls are essential for publicly traded companies to prevent foreign bribery and fraud. Weatherford’s failure to maintain such controls allowed its subsidiaries to engage in corrupt conduct and earn millions of dollars in illicit profits.

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