Key Energy Services, an oilfield services company, said last week that the Department of Justice has decided not to file any charges against it in connection with a previously disclosed investigation into potential violations of the Foreign Corrupt Practices Act.
As Compliance Week previously reported, the company voluntarily disclosed to the SEC and the Justice Department in May 2014 potential violations of the FCPA concerning business activities of Key Energy’s operations in Russia. No further details were provided on the matter.
In June 2014, Key further disclosed in a Form 8-K filing that it had also become aware of “an allegation involving Key's Mexico operations that, if true, could potentially constitute a violation of certain company policies, including our Code of Business Conduct, the U.S. FCPA, and other applicable laws.”
In a recent Form 8-K filing, dated April 28, 2016, Key said that it had been informed by the Justice Department that it had “closed its investigation and that it has decided to decline prosecution of the company.”
Additionally, Key said it has been “engaged in negotiations” with the SEC’s Division of Enforcement to resolve its investigation into similar matters. “Key has reached an agreement in principle with the staff on the terms of a proposed offer of settlement, which must be presented to the Commission for approval,” the company stated.
Key said it is “optimistic” that the proposed resolution will become final in the second quarter of 2016. In connection with the offer of settlement, Key said it has accrued a liability in the amount of $5 million.