An Innospec Inc. (IOSP) agent who worked for the chemical
company in Iraq on U.N. Oil-for-Food Program contracts pleaded
guilty to charges related a fraud and bribery scheme.
Ousama M. Naaman, a Canadian/Lebanese dual national who lives in
Abu Dhabi, pleaded guilty to a count of violating the Foreign
Corrupt Practices Act and another count of conspiracy to commit
wire fraud and falsify records. He faces up to 10 years in
prison.
Innospec itself pleaded guilty to bribing Iraqi officials and
violating the U.S. embargo on Cuba in March as part of a $40.2
million global settlement.
Friday, the Justice Department said Naaman paid kickbacks to
Iraqi government between 2001 and 2003 to win oil-for-food program
contracts by negotiation a 10% increase in the price to cover the
kickbacks.
Naaman also admitted that from 2004 to 2008, he paid or promised
to pay more than $3 million in bribes to officials in Iraq's oil
ministry and the Trade Bank of Iraq. The bribes secured sales of
tetraethyl lead, a fuel additive, and more favorable exchange
rates. He gave Innospec false invoices, which were incorporated
into the company's books.
Innospec shares traded up 1.5% recently at $10.51. The stock is
virtually flat with its year-earlier level, underperforming the
broader market.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com