Flowserve to pay $10.6M to settle Iraq Oil-for-Food probe at European units

February 21, 2008
CNN
Original Source: http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-23194335.htm

SAN FRANCISCO, Feb. 21, 2008 (Thomson Financial delivered by Newstex) -- Flowserve Corp. (NYSE:FLS) said Thursday it will pay $10.6 million to settle charges that its subsidiaries made improper payments to Iraq under the United Nations 'Oil-for-Food' program.

As part of the settlement, the provider of fluid motion and control products and services will pay a fine, profit disgorgement and related prejudgment interest of $6.57 million to the Securities and Exchange Commission and a penalty of $4 million to the Department of Justice.

Flowserve said the amounts are in line with accruals it announced in its third-quarter financial statements.

The Dallas-based company's French and Dutch subsidiaries were involved in sales to Iraq under the Oil-for-Food program from 2001 to 2003.

Flowserve stock was trading up 5 cents at $101.50.

Brigid Gaffikin
Copyright Thomson Financial News Limited 2007. All rights reserved.