FCPA Bribery Conspiracy Lands Former Kellogg, Brown & Root Chairman and CEO in Prison

Albert “Jack” Stanley, former chairman and CEO of Kellogg, Brown & Root Inc. (KBR) has been sentenced to 30 months in prison for his part in a decade-long conspiracy to violate the Foreign Corrupt Practices Act (FCPA) by bribing Nigerian government officials for business advantages. Through the bribery scheme, KBR sought engineering, procurement and construction (EPC) contracts. After serving his prison sentence, Stanley will serve three years supervised release. He will also pay restitution in the sum of $10.8 million to KBR, which was the victim of Stanley’s separate kickback scheme.

Two co-conspirators, Jeffrey Tesler and Wojciech J. Chodan, have also been sentenced.

The sentences meted out to Stanley and his co-conspirators were reduced because of their substantial cooperation with the Justice Department’s investigation. The investigation resulted in over $1.7 billion in forfeitures, penalties, and disgorgement.

Between 1995 and 2005, the bribery scheme helped KBR’s joint venture companies get four EPC contracts, valued at over $6 billion. The bribes were paid to Nigerian government officials through third-party agents.

KBR’s successor company, Kellogg Brown & Root LLC, has also been in trouble, pleading guilty to FCPA-related charges in February 2009. For its bribery of the Nigerian public officials, Kellogg Brown & Root LLC must pay $402 million in fines and retain an independent compliance monitor to review its compliance program for three years.

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