The SEC entered into a Deferred Prosecution Agreement (DPA) with Tenaris S.A. in its first-ever use of the approach to facilitate and reward cooperation in SEC investigations.  Tenaris is incorporated in Luxembourg and its ADR's are listed on the NYSE.   It's alleged that Tenaris, a global manufacturer of steel pipe products, violated the Foreign Corrupt Practices Act (FCPA) by bribing Uzbekistan government officials during a bidding process.  Tenaris was awarded several contracts which allegedly brought the firm almost $5 million in profits.

• Under terms of the DPA, Tenaris must pay $5.4mn in disgorgement and prejudgment interest.   
• Tenaris also will pay a $3.5mn criminal penalty in a Non-Prosecution Agreement with the Justice Department.

    Tenaris's Internal Investigation.   Tenaris is the first company to enter into a DPA with the SEC, an approach announced last year to encourage individuals and companies to provide information about misconduct and assist with an SEC investigation.  When Tenaris conducted a thorough, worldwide internal review of its operations and controls, it discovered FCPA violations by personnel in Uzbekistan and informed the SEC.   Based on its findings, Tenaris significantly enhanced its anti-corruption policies and practices.

Tenaris has agreed to cooperate further with the SEC, Justice Department, and any other law enforcement agency in connection with this case. 

“The company’s immediate self-reporting, thorough internal investigation, full cooperation with SEC staff, enhanced anti-corruption procedures, and enhanced training made it an appropriate candidate for the Enforcement Division’s first Deferred Prosecution Agreement."  - -  Robert Khuzami, Director - SEC Division of Enforcement.

Under the terms of the DPA, the SEC will refrain from prosecuting the company in a civil action for its violations if Tenaris complies with certain undertakings.  Among other things, Tenaris has agreed to enhance its policies, procedures, and controls to strengthen compliance with the FCPA and anti-corruption practices. Tenaris will implement due diligence requirements related to the retention and payment of agents, provide detailed training on the FCPA and other anti-corruption laws, require certification of compliance with anti-corruption policies, and notify the SEC of any complaints, charges, or convictions against Tenaris or its employees related to violations of any anti-bribery or securities laws.  Tenaris has agreed to continue to fully cooperate with the SEC in its investigation.

    SEC Staff Credits.   Investigation conducted by Karen Martinez of Salt Lake Reg'l Office, William McKean of Enforcement's FCPA Unit.  The SEC’s investigation is continuing.

For further details, go to:   [SEC Press Release 11-112, 5/17/11]  and    [Deferred Prosecution Agreement w/ Tenaris, 3/23/11]