Settlements Explained
Menu

JGC Corporation deferred prosecution agreement (2011)

Last checked: 23 October 2026 · Case records

On 6 April 2011 JGC Corporation, a Japanese engineering company, entered a deferred prosecution agreement with the U.S. Department of Justice and agreed to a US$218.8 million criminal penalty 1,2. The case concerned bribes to Nigerian officials to win contracts for the Bonny Island LNG facilities 1. In the agreement JGC admits it is responsible for the acts described in the statement of facts and that those facts are true and accurate 2. JGC agreed to retain an independent compliance consultant for two years 1.
Resolution type
Deferred prosecution agreement 1,2
Date
6 April 2011 1
Court
U.S. District Court for the Southern District of Texas, criminal case 4:11-cr-00260 2,3
Agencies
U.S. Department of Justice Criminal Division Fraud Section and FBI Houston 1
Penalty
US$218.8 million, due within ten days of signing 2
Guidelines
The agreement says the penalty is about 30 percent below the bottom of a US$312.6 million guidelines fine range 2
Statutes
18 U.S.C. 371 conspiracy to violate 15 U.S.C. 78dd-1 and 78dd-2, and a count under 15 U.S.C. 78dd-2 2
Admission
"JGC admits, accepts, and acknowledges that it is responsible under U.S. law for the acts of its employees" and agents in the statement of facts, which it accepts as true and accurate 2
Term
Two years and seven calendar days, with a possible one-year extension 2
Consultant
Independent compliance consultant for two years 1,2
SEC
No SEC action is described in the DOJ release 1

The charges and the agreement

DOJ filed a two-count criminal information against JGC in the Southern District of Texas 1. DOJ described the counts as one count of conspiracy and one count of aiding and abetting violations of the FCPA 1. The agreement gives the statutes as 18 U.S.C. 371 for the conspiracy, with the objects 15 U.S.C. 78dd-1 and 78dd-2, and 15 U.S.C. 78dd-2 for count two 2.

DOJ agreed to defer prosecution for two years and seven calendar days from the filing of the information 2. DOJ could extend the term by up to one year if JGC knowingly violated the agreement 2. If JGC complied, DOJ said it would dismiss the information at the end of the term 1.

The penalty was US$218.8 million, payable to the U.S. Treasury within ten days 2. The agreement says the penalty is final, non-refundable and not tax deductible in the United States 2.

What JGC admitted

Paragraph 2 of the agreement opens: "JGC admits, accepts, and acknowledges that it is responsible under U.S. law for the acts of its employees" 2. The paragraph covers JGC's subsidiaries and agents as set out in the statement of facts and states that those facts are true and accurate 2.

DOJ said JGC was part of TSKJ, a joint venture with Kellogg Brown & Root, Technip S.A. and Snamprogetti Netherlands B.V. 1. TSKJ won four contracts from Nigeria LNG Ltd. between 1995 and 2004 for LNG facilities on Bonny Island valued at more than US$6 billion 1. The Nigerian National Petroleum Corporation, a state-owned company, owned 49 percent of Nigeria LNG 1.

DOJ said TSKJ paid about US$132 million to a Gibraltar company controlled by consultant Jeffrey Tesler and more than US$50 million to a Japanese trading company 1. DOJ said, according to court documents, that JGC authorised the venture to hire them to pay bribes and intended part of the payments to go to bribes 1.

Why DOJ chose a deferred prosecution

The agreement lists the factors DOJ weighed 2. It records that JGC began cooperating after first declining to cooperate on jurisdictional grounds, and that JGC agreed to keep cooperating 2. It cites JGC's remedial measures, including review and improvement of its compliance programme, and the collateral consequences to JGC of a guilty plea or conviction 2.

JGC agreed to retain a corporate compliance consultant within 60 days of the filing 2. The consultant's term was two years from engagement, which could be extended to three years 2.

Status and related cases

DOJ said that, with JGC, the TSKJ participants had paid about US$1.5 billion in criminal and civil penalties 1. DOJ said Tesler was extradited from the UK in March 2011, pleaded guilty and agreed to forfeit US$148,964,568 1. It said Wojciech J. Chodan pleaded guilty and agreed to forfeit US$726,885 1.

The DOJ case page for JGC lists the information, the agreement and the press release 3. It does not list a motion or order to dismiss 3. This page has not confirmed from a DOJ or court document whether or when the JGC information was dismissed, so it does not report it.

This page has not found an official or named-reporter source on any settlement between JGC and the Federal Government of Nigeria. See the records for Kellogg Brown & Root and Halliburton, Technip, Snamprogetti and ENI, and Marubeni, the trading company agent.

Common questions

Did JGC plead guilty?

No. JGC entered a deferred prosecution agreement, in which it accepts the statement of facts as true and accurate 2.

How much did JGC pay?

A US$218.8 million criminal penalty 1,2.

Did JGC get a monitor?

No monitor is described. JGC agreed to an independent compliance consultant for two years 1,2.

Did JGC cooperate?

The agreement says JGC began cooperating after first declining on jurisdictional grounds 2.

Rules and fees change. Check the official site linked above before you apply or pay. Spotted an error? Email [email protected] with the official link.

Sources

  1. U.S. Department of Justice: JGC Corporation Resolves Foreign Corrupt Practices Act Investigation and Agrees to Pay a $218.8 Million Criminal Penalty (6 April 2011)
  2. U.S. Department of Justice: United States v. JGC Corporation, deferred prosecution agreement, 4:11-cr-00260, S.D. Tex. (6 April 2011)
  3. U.S. Department of Justice: United States v. JGC Corporation, case page, docket 11-CR-260

Related