Appendix E: Foreign Corrupt Practices Act?Case Statistics (1978?2011)

• Author: Miriam Weismann
• Pages: 235-314

235

APPENDIX E

FOREIGN CORRUPT

PRACTICES ACT C ASE

STATISTICS (1978–2011)

Case Name

Date of

Prosecution Company Brief Case Description Notes

SEC v. Katy Industries

(N.D. Ill. 1978)

1978 (SEC) Katy Industries is an oil produc-

tion company that bribed Indone-

sian o cials through an o -shore

corporation in the amount of

$250K.  e purpose of the bribes

was to secure an oil and gas

contract in Indonesia. Two Katy

directors were issued permanent

injunctions and Katy was required

to establish an outside compliance

review committee.

SEC v. Page Airways

(D.D.C. 1978)

1978 (SEC) Page sells and services aircra s

and paid $2.5 million in bribes to

six Asian and African countries

including Gabon, Morocco, and

Saudi Arabia to sell its aircra s

and products. Page consented to a

permanent injunction and charges

against six of its o cers were

dismissed.

charges dis-

missed against

individuals

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236 Foreign Corrupt Practices Act Case Statistics (1978–2011)

Case Name

Date of

Prosecution Company Brief Case Description Notes

U.S. v. Kenny Int’l Corp. 1979 (DOJ) Kenny Int’l Corp. Kenny paid bribes to Sir Albert Henry and  e Cook Islands Party

to ensure the renewal of a stamp distribution agreement, whereby

Kenny obtained exclusive rights to the promotion, distribution

and sale of Cook Islands postage stamps through the world.  e

company paid restitution of $337,000 and  ned $50,000, and per-

manent injunction against further FCPA violations.  e chairman

was permanently enjoined; the company entered into a settlement

agreement with the foreign government.

U.S. v. Carver (S.D. Fla.

1979)

1979 (DOJ) Holcar Oil Corp. In order to secure an oil drilling concession, Carver and Holley

(o cers of Holcar) paid $1.5 million to a Emirate of Qatar. Carver

and Holley consented to permanent injunctions.

SEC v. International Sys-

tems & Controls (D.D.C.

1979)

1979 (SEC) ISC is a Del. Corp.

and an issuer.

ISC paid $23 million in bribes to foreign o cials in nearly a dozen

countries including Saudi Arabia and Iran to secure energy and

forestry processing contracts. Two ISC o cers consented to perma-

nent injunctions.

SEC v. Tesoro Petroleum

Corp.

1980 Tesoro Petroleum

Corp.

Tesoro made a bribery payment to the worldwide foreign govern-

ment o cials or political leaders to obtain foreign oil and gas

concessions from foreign governments.  e company consented to

the entry of a permanent injunction and agreed to appoint a new

director to keep accurate books and records.

U.S. v. Ruston Gas Tur-

bines Inc.

1982 (DOJ) Ruston Gas Turbines

Inc.

Ruston made a bribery payment to two sub-directors of Pemex to

obtain purchase order from Pemex for turbine compression sys-

tems and related equipment for Ruston and CEI.  e company was

 ned $750,000 and two managers were  ned 5,000.

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Foreign Corrupt Practices Act Case Statistics (1978–2011) 237

Case Name

Date of

Prosecution Company Brief Case Description Notes

U.S. v. Appl. Process

Products Overseas Inc.;

U.S. v. Gary Bateman

1982 (DOJ &

SEC)

Appl. Process Prod-

ucts Overseas Inc.

Applied paid a bribe to the Administrative Secretary of the Chief of

Purchasing at Pemex and other Pemex o cials in Mexico to obtain

a contract from Pemex for compression-related equipment and

spare parts.  e company was issued a permanent injunction and

paid $229,512 civil penalty, $300,000 civil tax payments, and $5000

prosecution costs.

U.S. v. Crawford Enter-

prise, Inc.

1982 (DOJ) Crawford Enterprise,

Inc.

CEI made a bribery payment to two sub-directors of Pemex to

obtain purchase orders from Pemex for turbine compression sys-

tems and related equipment.  e company was  ned $3,450,000

and was charged with conspiracy, aiding, and abetting. Eight

management persons were charged with conspiracy, aiding, and

abetting and paid  nes.

U.S. v. C.E. Miller Corp.;

U.S. v. Marquis King

1982, 1983 (DOJ) C.E. Miller Corp. CEMCO paid a bribe to two sub-directors of Pemex, Mexico, to

obtain purchase orders from Pemex for turbine compression sys-

tems and related equipment for CEMCO and CEI.  e company

was  ned $20,000 and charged with aiding and abetting. Two man-

agers were charged and received probation and community service.

U.S. v. Int’l Harvester co,

(S.D. Tex. 1982); U.S. v.

McLean; McLean v. Int’l

Harvester Co.

1982,1985, 1987

(DOJ)

Int’l Harvester Co. Harvester made bribery payment to two o cials of Pemex to

obtain from Pemex purchase orders for turbine compression sys-

tems and related equipment for Solar and CEI.  e company was

 ned $10,000 and paid $40,000 prosecution costs and charged with

conspiracy to violate FCPA. Two managers were charged with con-

spiracy, aiding and abetting.

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