FCPA Professor – Fluor Corporation has agreed to a $14.5 million settlement for keeping inaccurate books and records, and materially misstating financial statements included in periodic reports filed with the SEC.
The Texas based engineering, procurement, and construction services company had two fixed-price construction projects—including one for the U.S. Army—on which it carried a risk of cost overruns with respect to work within the contract’s scope. It was overly optimistic in its cost and timing estimates, but failed to maintain a system of internal accounting controls sufficient to account for these contracts in accordance with Generally Accepted Accounting Principles. Red flags were raised when the company undertook an internal investigation that identified material weaknesses in its internal control over financial reporting and material errors in its financial statements, and resulted in Fluor restating its annual and quarterly financial statements for nearly four years.
Source:
- FCPA Professor: Fluor Resolves $14.5 Million Non-FCPA, FCPA Enforcement Action
