A&O Shearman FCPA Digest | United States v. Finbar B. Kenny and Kenny International Corp. (D.D.C. 1979)

Source Documents

Foreign Official
Sir Albert Henry and The Cook Islands Party (the then-majority political party in The Cook Islands Legislative Assembly).

Nature of Business
Distribution and sale of Cook Islands postage stamps by Kenny Int’l Corp. (“Kenny Int’l”), a New York corporation and a domestic concern.

Influence to be Obtained
To secure the renewal of a stamp distribution agreement, whereby Kenny Int’l obtained exclusive rights to the promotion, distribution and sale of Cook Islands postage stamps throughout the world.

Enforcement
Kenny Int’l pled guilty to a single count of a bribery FCPA violation, consented to the entry of a final judgment of permanent injunction against further FCPA violations, and agreed to pay a criminal fine of $50,000. Kenny, chairman of the board and president and majority shareholder of Kenny Int’l, pled guilty to a criminal charge in the High Court of the Cook Islands, consented in the United States District Court for the District of Columbia to the entry of a final judgment of permanent injunction against further violations, paid restitution to the government of the Cook Islands in the amount of NZ $337,000, and agreed to cooperate with the government of the Cook Islands whenever requested.

Amount of the Value
Financial assistance (worth NZ $337,000) in connection with an election; i.e., chartering an aircraft to fly voters from New Zealand to the Cook Islands to reelect the then-Premier, Sir Albert Henry.

Amount of Business Related to Payment
Postage stamp sales worth approximately $1.5 million per year (50% of which was shared with the government of the Cook Islands).