Albemarle’s bribery schemes look and sound like text-book examples of third-party agents being paid high commissions as a way to funnel bribery payments to foreign officials at state-owned oil refineries. However, as usual, there is more than meets the eye in the factual descriptions.
The DOJ and SEC settlements focused on bribery conduct in Vietnam, Indonesia and India. However, the SEC also cited Albemarle’s control deficiencies with respect to its third-parties in China and the United Arab Emirates (“UAE”).
Background
Albemarle maintained three global business units: catalysts (including Refining Solutions), lithium and bromine. The Refining Solutions business sold catalysts through sales offices and third parties. The President of the Refining Solutions reported directly to Albemarle’s CEO. Albemarle centrally coordinated its compliance, legal, finance, contracting and internal audit functions.
Albemarle used sales agents to sell refinery catalysts in Vietnam, India, Indonesia, China and the UAE. The Indonesia and China sales agents also served as distributors.
Albemarle was well-aware of the bribery risks in the refinery catalyst business. Internal reports…
