* Ex-CEO Jennings to pay fine, no admission of wrongdoing
* Innospec had agreed to $40.2 mln settlement last March
(Adds details from complaint, earlier Innospec settlement)
By Jonathan Stempel
NEW YORK, Jan 24 A former Innospec Inc (IOSP.O)
chief executive has settled a U.S. regulator's charges that he
authorized the specialty chemicals company to pay bribes to
Iraqi and Indonesian officials.
Paul Jennings, the former chief executive, will pay about
$229,000 to resolve U.S. Securities and Exchange Commission
civil charges that he approved the payouts to win contracts,
and violated the federal Foreign Corrupt Practices Act, the
The payment includes a $100,000 fine and the forfeiting of
about $129,000 of bonuses plus interest tied to the success of
sales of a fuel additive, which Innospec obtained through
bribery, the SEC said. Jennings did not admit wrongdoing.
Jay Holtmeier, a lawyer for Jennings, did not immediately
return a call seeking comment.
According to a complaint filed on Monday in the Washington,
D.C. federal court, Jennings "actively participated" in bribery
starting in 2004, when he was chief financial officer, and
continuing after he became chief executive the next year.
Last March, Innospec agreed to pay $40.2 million to settle
related U.S. and British charges, and pleaded guilty to a
12-count U.S. criminal information. [ID:nN18236738]
The Littleton, Colorado-based company admitted to bribing
Iraqi oil officials, defrauding the United Nations through its
Oil for Food Program and selling chemicals to Cuban power
plants in violation of a U.S. embargo.
The SEC said Innospec made $6.35 million of illegal
payments from 2000 to 2008 in exchange for contracts generating
$60.1 million of profit and $176.7 million of revenue.
Jennings was Innospec's chief executive from 2005 to 2009.
In afternoon trading, Innospec shares were up 9 cents at
$19.55 on the Nasdaq.
The case is SEC v. Jennings, U.S. District Court, District
of Columbia, No. 11-00144.
(Reporting by Jonathan Stempel in New York; editing by Andre
Grenon and Gerald E. McCormick)