SEC Files Settled Books and Records and Internal Controls Charges Against Chevron Corporation

U.S. Securities and Exchange Commission, Nov 14, 2007

For Improper Payments to Iraq Under the U.N. Oil for Food Program — Company Agrees to Pay a Total of $30 Million

The Securities and Exchange Commission filed Foreign Corrupt Practices Act books and records and internal controls charges against Chevron Corporation ("Chevron"), a California-based oil company, in the U.S. District Court for the Southern District of New York. The Commission's complaint alleges that from approximately April 2001 through May 2002, third parties with which Chevron contracted paid approximately $20 million in illegal kickback payments in connection with Chevron's purchases of crude oil under the U.N. Oil for Food Program. Chevron knew or should have known that third parties paid a portion of the premiums they received from Chevron to Iraq as illegal surcharges. The Oil for Food Program provided humanitarian relief to the Iraqi population during the time that Iraq was subject to international trade sanctions. However, the surcharges paid by third parties in connection with Chevron's purchases of oil bypassed the escrow account and were instead paid to Iraqi-controlled bank accounts in Jordan and Lebanon.

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