Q3-4 2021 Integrity Advocate
Ohio-Based Energy Giant Engaged in Corruption
On July 22, 2021, Akron-based FirstEnergy Corp. agreed to pay a $230 million criminal penalty as part of deferred prosecution agreement with the U.S. Department of Justice relating to a charge that FirstEnergy conspired to commit honest services wire fraud.
As part of the agreement, FirstEnergy acknowledged it paid millions of dollars to an elected state public official through the official’s alleged nonprofit organization in return for the official pursuing nuclear legislation for the company’s benefit. FirstEnergy further acknowledged that it paid $4.3 million dollars to a second public official in exchange for the individual advancing FirstEnergy’s interests.[1]
The FirstEnergy announcement is a stark reminder of the devasting consequences that engaging in corrupt activities can have on a company and its stakeholders. Further, some of the individuals alleged to have engaged in the corrupt conduct face criminal charges, and if convicted, could face severe criminal penalties.
"I hope that today's announcement serves as a stern warning to other corporations and corporate executives who would sell their integrity to a public official, a group of public officials."
FBI Special Agent in Charge Chris Hoffman
It is neither ethical, legal nor in the best interest of you or the company to engage in corrupt conduct in connection with the company’s business or in an attempt to advance the company’s interest. Corrupt conduct includes bribery, or the providing of anything of value to anyone, including domestic and foreign government officials, intending to improperly influence an official action.
MPC remains committed to conducting company business with the highest level of integrity and in compliance with applicable laws and regulations, including those aimed at corruption in the United States and in foreign jurisdictions. Bribery or other corrupt activity is strictly prohibited.
Policy #2010/2010x – Anticorruption – prohibits the company, its employees and those acting on behalf of the company from paying, providing, offering or promising, and from authorizing any other person to pay, provide, offer or promise, anything of value, to anyone to improperly influence any act or decision, induce such person to act in violation of his or her lawful duties, secure any improper advantage for the company or use his or her influence with a government or government official.
In addition, MPC employees must consult with the Law - Government Affairs Organization prior to offering anything of value to a government official.
Please contact BI&C with any questions regarding the company’s anticorruption policy.
Reporting Concerns
Employees are expected to report suspected violations of laws and can do so without fear of retaliation. Suspected violations may be reported to your supervisor, your supervisor's manager, Internal Audit, Law, Human Resources, or Environment, Safety, Security & Product Quality. In addition, employees and others may access the Integrity Helpline at FuelingIntegrity.com or (855) 857-5700.[2]
[1] Department of Justice, U.S. Attorney’s Office, Southern District of Ohio. (2021, July 22). First Energy charged federally, agrees to terms of deferred prosecution agreement. Retrieved from: https://www.justice.gov/usao-sdoh/pr/firstenergy-charged-federally-agrees-terms-deferred-prosecution-settlement
[2] Mexico - All Carriers 800.681.6945; Telmex 001 866 376 0139; Singapore – All Carriers 800.852.3912; Singapore Telecom 001 800 1777 9999
Extortion in the Corporate World
Extortion is the act of obtaining something, like money or property, from another person, 
with that person’s consent, through the wrongful use of actual or threatened force, violence, or intimidation. Extortion is a crime.
Thinking of extortion likely conjures up scenes from your favorite gangster flicks such as Goodfellas or The Godfather. That’s because extortion is associated with organized crime–make monthly payments for “protection” or we’ll break your kneecaps, or worse. Like Don Vito Corleone said in The Godfather, “I’m gonna make him an offer he can’t refuse.” Unfortunately, businesses are often the extortion victims.
Cyber extortion is a corner of the criminal underworld that has seen explosive growth targeting businesses, including other energy companies. According to a recent report by Chainalysis, the total amount paid by ransomware victims increased by 311% in 2020 to reach over $406 million worth of cryptocurrency.[1]
While cyber extortion is increasing, old school person-to-person extortion schemes still exist. It’s not uncommon for police, military, customs personnel, immigration control, or health inspectors in foreign countries where public sector corruption is widespread to demand payment, under threat of safety or health, as a condition for entry, checkpoint passage, or re-entry.
The U.S. also has its fair share of extortionists. Two Virginia attorneys were recently sentenced to prison after they pleaded guilty to trying to extort a multinational chemicals company for $200 million. The attorneys admitted that they approached the chemicals company and threatened to make public statements alleging that the company had significant civil liability for manufacturing a purportedly harmful chemical used in a common weed killer. They demanded a $200 million “consulting agreement” with the company to create a conflict of interest that would stop them from representing their clients in litigation against the company.[2] As another example, in July, Michael Avenatti was sentenced to prison for threatening to make public statements alleging that shoe company Nike had made inappropriate payments to amateur athletes, unless Nike entered into a lucrative consulting agreement with him.
While we are unable to control bad actors and certainly cannot stop all extortion attempts, what we can do is heighten our awareness, learn to recognize extortion, follow MPC cybersecurity policies and best practices, and know what to do when faced with a real or suspected attempt.
MPC and MPLX do not make improper payments or provide other improper benefits to anyone. This means that if any business partner, prospective business partner, supplier, prospective supplier, industry competitor, government official, political party, party official, candidate for political office, or any other individual requests or demands an improper payment or improper benefit or favor, employees must, with very limited exception for imminent threats of physical harm or imminent threats to health and safety, refuse such request or demand, and immediately report the matter to BI&C or a member of the Law - Government Affairs Organization.
Reporting Concerns
Employees are expected to report suspected violations of laws and can do so without fear of retaliation. Suspected violations may be reported to your supervisor, your supervisor's manager, Internal Audit, Law, Human Resources, or Environment, Safety, Security & Product Quality. In addition, employees and others may access the Integrity Helpline at FuelingIntegrity.com or (855) 857-5700.[3]
[1] Chain Analysis Team (2021, May 14). Ransomware 2021: Critical Mid-year Update [REPORT PREVIEW]. Insights. https://blog.chainalysis.com/reports/ransomware-update-may-2021
[2] WHSV-TV3. (2020, June 19). Virginia attorneys plead guilty to $200 million extortion scheme. WHSV.com. https://www.whsv.com/content/news/Virginia-attorneys-plead-guilty-to-200-million-extortion-scheme-571375721.html
[3] Mexico - All Carriers 800.681.6945; Telmex 001 866 376 0139; Singapore – All Carriers 800.852.3912; Singapore Telecom 001 800 1777 9999
Corporate Compliance & Ethics Week
MPC will be joining organizations around the world in celebration of Corporate Compliance and Ethics Week, November 7th-13th. This week long celebration, It Starts with Integrity, offers the opportunity to shine a spotlight on the importance of compliance and ethics here at MPC.
BI&C and our Business Integrity Partners, located throughout the company, have a week full of giveaways, fun activities and prizes planned. So, mark your calendars and start planning your red, white, and blue American Spirit contest outfits now!
We hope you'll join us, as a thriving ethics culture involves commitment, modeling, and the right conduct by all employees. It Starts with Integrity, and it takes each one of us.
