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Wednesday, June 12, 2024 | Back issues
Courthouse News Service Courthouse News Service

Former CEO Fined for Innospec’s Bribery

WASHINGTON (CN) - The former CEO of Innospec will pay $229,000 in fines, disgorgement and interest for the company's bribery of foreign officials in Iraq and Indonesia, to get millions of dollars in contracts for Innospec's fuel additives. Paul W. Jennings settled the SEC complaint without admitting or denying the charges.

The SEC said it was its third enforcement action against "an individual responsible for the widespread bribery that occurred at Innospec." It previous sued the company itself and its former business director in Iraq, also under the Foreign Corrupt Practices Act.

Innospec was charged in 2010 with paying $6.3 million in bribes, and promising another $2.8 million to officials in Iraq and Indonesia, to secure contracts worth $176 million.

The SEC claims Jennings knew of "the company's longstanding practice of paying bribes to win orders for sales of tetraethyl lead," when he was CFO in 2004, and that after he became CEO in 2005, "Jennings and others in Innospec's management approved bribery payments to officials at the Iraqi Ministry of Oil (MoO) in order to sell the fuel additive to Iraq refineries."

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