U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 18863 \ September 1, 2004
Accounting and Auditing Enforcement
Release No. 2092 / September 1, 2004
SECURITIES AND EXCHANGE COMMISSION v. ERIC L. MATTSON AND JAMES W. HARRIS, Civil Action No. H-01-3106 (S.D. Tex.)(filed September 11, 2001)
SEC ACTION AGAINST BAKER HUGHES INCORPORATED'S FORMER CHIEF FINANCIAL OFFICER AND CONTROLLER IS CONCLUDED
On September 11, 2001, the Commission filed a complaint against Eric Mattson and James Harris alleging that they violated Sections 30A and 13(b)(5) of the Securities Exchange of 1934 ("Exchange Act") and Rule 13b2-1 thereunder, and aided and abetted Baker Hughes Incorporated's violations of Sections 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act. Specifically the Commission alleged that Eric L. Mattson, the former Chief Financial Officer of Baker Hughes, and James W. Harris, Baker Hughes' former Controller, authorized the payment of a bribe of $75,000, through KPMG-Siddharta Siddharta & Harsono ("KPMG-SSH"), Baker Hughes' agent and accountant in Indonesia, to a local government official in Indonesia.
On September 9, 2002, the United States District Court for the Southern District of Texas, Houston Division, dismissed the Commission's Section 30A antibribery claim. On January 28, 2003, on joint motion of the parties, the court dismissed the Commission's remaining books and records and internal controls claims with prejudice and rendered its "final judgment." On March 25, 2003, the Commission filed a notice of appeal from this order dismissing the Commission's Section 30A antibribery claim.
Pursuant to the Commission's unopposed motion filed on July 13, 2004, the Fifth Circuit Court of Appeals on July 14, 2004, dismissed the appeal filed by the Commission, and the litigation in this matter was concluded. See also Litigation Release No. 17126.