SEC charges two under foreign corrupt practices act

The U.S. Securities and Exchange Commission (SEC) charged a former business director at Innospec, Inc. and the company’s third-party agent in Iraq with violating the Foreign Corrupt Practices Act (FCPA) by engaging in widespread bribery of Iraqi government officials to land contracts under the United Nations Oil-for-Food Program and continuing to sell a fuel additive to Iraq after the program ended. The SEC, which charged Innospec earlier this year, alleges that David P. Turner was among senior Innospec officials who directed and approved more than US$9.2 million in bribery payments either paid or promised to officials in Iraq or Indonesia. Bribes to Iraqi officials were arranged by Innospec’s agent in Iraq, Ousama M. Naaman, whose commission payments included kickbacks to the Iraqi government in return for the Oil-for-Food contracts. Both Turner and Naaman agreed to settle the SEC’s charges against them. (August 6, 2010)