U.S. charges France-based oil company Total with overseas bribery

The U.S. Securities and Exchange Commission (SEC) on Wednesday charged France-based oil and gas company Total S.A. for violating the Foreign Corrupt Practices Act (FCPA).

The SEC alleged Total paid 60 million dollars in bribes to intermediaries of an Iranian government official who then exercised his influence to help the company obtain valuable contracts to develop significant oil and gas fields in Iran. Through the bribery scheme Total made more than 150 million dollars in profits.

According to the SEC's statement, Total attempted to cover up the true nature of the illegal payments by entering into sham consulting agreements with intermediaries of the Iranian official and mischaracterizing the bribes in its books and records as legitimate "business development expenses" related to the consulting agreements.

Total, whose securities are publicly traded on the New York Stock Exchange, agreed to pay more than 398 million dollars to settle the SEC's charges and a parallel criminal matter by the U.S. Department of Justice.

The FCPA enforcement is a high priority area for the SEC. So far this year it has charged 4 entities for violating the FCPA including multinationals like Netherlands-based Koninklijke Philips Electronics and Ralph Lauren Corporation.