Proppant producer Fairmount Santrol is being investigated by federal regulators under the Foreign Corrupt Practices Act. 1977 over alleged instances of bribery.
The $828.7 million company, whose global operations include Argentina, Canada, China, Denmark and the United Arab Emirates is suspected to have fallen foul of securities laws governing international operations.
In response to the investigation, the company has stated that is cooperating with the investigation and that it strictly forbids “any such conduct.” Fairmount’s spokeswoman Kristin Lewis said in a statement that the company’s training helps provide safeguards “against the risk we face in those countries that are customary for large companies like Fairmount with international operations”.
The company has also stated that it has already employed the services of outside lawyers to investigate the undisclosed focus of the investigation and deemed no further action was necessary.
“We cannot predict what, if any, further action the SEC may take regarding its investigation, and cannot provide an estimate of the potential costs of the SEC’s investigation or any possible fines, penalties or other remedial actions that might result, if any, at this time,” said the company in a regulatory filing.
Article continues below this message
Have your opinion heard with Shale Gas International
We accept interesting, well-written opinion and analysis articles of up to 1,500 words, that offer unique insights into the shale industry. The articles cannot be overtly promotional in nature and need to fit into at least one of our content categories.
If accepted, the article must be exclusive to Shale Gas International website and cannot appear on any other websites, publications, etc. Each article may contain up to three links to external websites relevant to the content discussed in the piece.
If you would like to contribute to Shale Gas International website, please contact us at: editor[at]mw-ep.com