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Bad Investment

Company invested in by Kerry charged with bribery

John Kerry / AP
May 29, 2013

Secretary of State John Kerry disclosed hundreds of thousands of dollars in investments last year in a company that allegedly bribed Iranian government officials to obtain oil and gas contracts in the country.

The Securities and Exchange Commission on Wednesday charged French oil and gas company Total S.A. with violations of U.S. law for allegedly paying $60 million in bribes to "intermediaries" who helped the company win lucrative state contracts in Iran.

Kerry’s personal financial disclosure forms show that his wife owns between $350,002 and $750,000 in Total S.A. stock. That stock produced capital gains and dividend income in 2011, according to the disclosures.

The Kerrys’ initial stock purchases occurred in ten different transactions from April through August of 2008, according to that year’s disclosure. Kerry’s 2011 financial disclosure form, filed in 2012, is the most recent one available.

The State Department did not return a request for comment by press time.

"The SEC alleges that Total made more than $150 million in profits through the bribery scheme," according to a press release on the agency’s website.

"Total attempted to cover up the true nature of the illegal payments by entering into sham consulting agreements with intermediaries of the Iranian official and mischaracterizing the bribes in its books and records as legitimate ‘business development expenses’ related to the consulting agreements," the release states.

The SEC is charging Total with violations of the Foreign Corrupt Practices Act.

French authorities also charged the company with violations of that country’s laws on international business practices.

Four members of Congress also own stock in Total S.A., according to their financial disclosures.

Reps. Richard Hanna (R., N.Y.), Michael McCaul (R., Tex.), Kurt Schrader (D., Ore.), and Robert Turner (R., N.Y.) also reported Total S.A. holdings in 2011.