Key Energy Services, Inc. disclosed in a securities filing Tuesday that the SEC is investigating potential FCPA violations by the company in Russia.
In its May 6, 2014 Form 10-Q, Key said:
The U.S. Securities and Exchange Commission has advised us that it is investigating possible violations of the U.S. Foreign Corrupt Practices Act involving business activities of Key’s operations in Russia. We take any such allegations very seriously and are conducting an investigation into the allegations. We are fully cooperating with and sharing the results of our investigation with the Commission. While the outcome of our investigation is currently not determinable, we do not expect that it will have a material adverse effect on our consolidated financial position, results of operations, or cash flows.
The Houston, Texas-based company’s wholly-owned subsidiary, Geostream, provides oil and gas drilling, workover and reservoir engineering services in Russia.
Key Energy also has operations in Mexico, Colombia, Ecuador, and the Middle East, and a technology development and control systems business based in Canada.
Julie DiMauro is the executive editor of FCPA Blog and can be reached here.