In the Matter of BHP Billiton Ltd.

BHP Billiton Ltd. (BHPB) (defendant), a global producer of natural resources and raw materials, was the official sponsor of the 2008 Beijing Olympic Games. BHPB developed a hospitality program to invite foreign government officials to attend the Olympic Games. Under the hospitality program, foreign government officials and their guests were given luxury hotel accommodations, meals, event tickets, and other perks. BHPB’s objective was to develop business relationships with foreign governments. Recognizing the risk that corrupt foreign government officials would be invited under the hospitality program, BHBP relied on its existing internal bookkeeping protocols to try to identify corrupt foreign government officials who should not be allowed to participate in the hospitality program. The existing internal bookkeeping protocols required BHBP’s business managers to complete applications and furnish information about specific foreign government officials that the business managers wished to invite. However, the protocols did not call for an independent review of the applications, did not require detailed information about the proposed foreign government invitees, and did not provide for specific training on how business managers were to complete the applications. As a result of the shortcomings in BHBP’s internal bookkeeping protocols, several corrupt foreign government officials were invited under the hospitality program. The Securities and Exchange Commission (SEC) instituted cease-and-desist proceedings against BHBP.