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SEC v. Ruehlen (Ruehlen motion for summary judgment)

SEC v. Ruehlen (Ruehlen motion for summary judgment)

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Published by Mike Koehler
SEC v. Ruehlen (Ruehlen motion for summary judgment)
SEC v. Ruehlen (Ruehlen motion for summary judgment)

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Categories:Types, Legal forms
Published by: Mike Koehler on Mar 29, 2014
Copyright:Traditional Copyright: All rights reserved

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06/01/2014

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 IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF TEXAS SECURITIES AND EXCHANGE COMMISSION, Plaintiff, v. MARK A. JACKSON and JAMES J. RUEHLEN, Defendants. CIVIL ACTION NO. 4:12-CV-00563
DEFENDANT JAMES J. RUEHLEN’S MOTION FOR SUMMARY JUDGMENT AND MEMORANDUM OF LAW IN SUPPORT THEREOF
Case 4:12-cv-00563 Document 146 Filed in TXSD on 03/28/14 Page 1 of 47
 
TABLE OF CONTENTS Page
 
NATURE AND STAGE OF THE PROCEEDINGS AND ISSUES TO BE RULED UPON BY THE COURT
 .................................................................................................. 1
 
INTRODUCTION AND SUMMARY OF ARGUMENT
 ......................................................... 1
 
STATEMENT OF UNDISPUTED MATERIAL FACTS
 ......................................................... 3
 
I.
 
Relevant Background .......................................................................................................... 3
 
A.
 
 Noble’s West Africa Division And Jim Ruehlen .................................................... 3
 
B.
 
Mr. Ruehlen Identified The “Paper Process” As An Issue During The 2004 West Africa Division Audit .................................................................................... 5
 
C.
 
After Researching Alternatives And Receiving Advice From Local Counsel, Noble Continued To Use The “Paper Process” In Early 2005 ................ 7
 
II.
 
Payments In Connection With Temporary Import Permits .............................................. 10
 
A.
 
The Payments Were Reviewed For FCPA Compliance Through A Fully Transparent Process By Multiple Levels Within The Company .......................... 10
 
B.
 
Mr. Ruehlen Fully Complied With Noble’s Internal Controls Over The Payments ............................................................................................................... 13
 
C.
 
Mr. Ruehlen Had No Role In Accounting For The Payments .............................. 16
 
D.
 
Mr. Ruehlen Promptly Raised Concerns To Senior Management Upon Learning Of A Competitor’s Internal Investigation Related To Temporary Import Permits ...................................................................................................... 17
 
LEGAL STANDARD
 ................................................................................................................. 18
 
ARGUMENT
 ............................................................................................................................... 19
 
I.
 
The Court Should Grant Summary Judgment On The SEC’s Claims For Violations Of The FCPA’s Books And Records Provisions ............................................ 19
 
1.
 
There Is No Evidence That Mr. Ruehlen Falsified Any Book, Record, Or Account, Or That He Aided And Abetted Noble’s Alleged Failure To Keep Accurate Books And Records .......................... 20
 
2.
 
There Is No Evidence That Mr. Ruehlen Believed That The Payments At Issue Were Unlawful Under the FCPA ............................... 23
 
3.
 
Section 13(b) Does Not Require That Payments Be Recorded In An Account Named “Unlawful Bribes” ................................................... 26
 
II.
 
The Court Should Grant Summary Judgment On The SEC’s Claim For Knowing Circumvention Of Noble’s System Of Internal Accounting Controls .............................. 28
 
A.
 
There Is No Evidence That Mr. Ruehlen—Who Received CFO Approval For Every Payment At Issue In This Matter—“Circumvented” Noble’s System Of Internal Accounting Controls .............................................................. 29
 
B.
 
The SEC’s Other Theories Of Circumvention Are Meritless And Contradicted By The Undisputed Evidence .......................................................... 31
 
Case 4:12-cv-00563 Document 146 Filed in TXSD on 03/28/14 Page 2 of 47
 
TABLE OF CONTENTS
(continued)
 Page
ii 1.
 
Audit Committee “Resolution” ................................................................. 31
 
2.
 
“Backdated” IC Network Certifications ................................................... 31
 
3.
 
Quarterly Representation Letters .............................................................. 33
 
4.
 
“Deceptive” Approval Requests ............................................................... 34
 
5.
 
Payments Recorded To Other Accounts ................................................... 34
 
III.
 
The Court Should Grant Summary Judgment On The SEC’s Bribery Claims ................. 35
 
A.
 
The “Paper Process” ............................................................................................. 36
 
B.
 
Extensions Of Temporary Import Permits ............................................................ 39
 
CONCLUSION
 ........................................................................................................................... 40
 
Case 4:12-cv-00563 Document 146 Filed in TXSD on 03/28/14 Page 3 of 47

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