United States v. George V. Morton (N.D. Tex. 1990)
United States v. John Blondek, Vernon R. Tull, Donald Castle and Darrell W.T. Lowry (N.D. Tex. 1990)
United States v. Eagle Bus Manufacturing, Inc. (S.D. Tex. 1991)
Case Details
- Case Name
- United States v. George V. Morton (N.D. Tex. 1990)
United States v. John Blondek, Vernon R. Tull, Donald Castle and Darrell W.T. Lowry (N.D. Tex. 1990)
United States v. Eagle Bus Manufacturing, Inc. (S.D. Tex. 1991)
- Foreign Official
- Castle, the president, and Lowry, the vice president of the Saskatchewan Transp. Co., a Canadian Crown corporation (the “STC”).
- Date of Conduct
-
1989 to 1990
- Nature of Business
- Manufacture and sale of buses by Eagle Bus Mfg. Co. (“Eagle”), a subsidiary of Greyhound Lines Inc., a Texas corporation and an issuer.
- Influence to be Obtained
- Beginning in or about July 1989 and continuing through February 1990, John Blondek and Vernon Tull, both former employees of Eagle Bus Manufacturing, Inc., allegedly participated in a bribery scheme to pay foreign officials of Saskatchewan $50,000 CAD in connection with the sale of 11 buses to be used by the province. According to the facts alleged in the indictment, Darrell Lowry and Donald Castle, the respective Vice-President and President of the Saskatchewan Transportation Company (“STC”), an instrumentality of the Canadian government, requested payment in the sum of approximately two percent of the purchase price to ensure Eagle’s receipt of the contract. Thereafter, George Morton, Eagle’s Canadian agent, caused a check for $52,000 CAD to be issued to his own Canadian corporation. As alleged, Morton then delivered $50,000 CAD in cash to Castle and, in an effort to conceal such payment and pursuant to Tull’s instructions, prepared a letter on the letterhead of Eagle Ontario Bus Industries, Inc., the Canadian firm assisting Eagle in the sale, falsely stating that STC had been granted a “volume discount” amounting to US $43,940.
- Enforcement
- Morton, a Canadian national and the Canadian agent of Eagle, pleaded guilty to the single count of conspiracy to violate the FCPA and was sentenced to three years’ probation. In a related case, Blondek and Tull, president and vice president of Eagle, respectively, and Castle and Lowry, the Canadian foreign officials, were charged with a single count of conspiracy to violate the FCPA. The court dismissed the count as to Castle and Lowry on the basis that foreign officials may not be prosecuted for conspiring to violate the FCPA. Blondek and Tull were later acquitted at trial. In a civil action, Eagle consented to entry of a permanent injunction prohibiting future violations of the FCPA.
- Amount of the Value
- Canadian $50,000, equal to 2% of price of 11 buses.
- Amount of Business Related to Payment
- Valued at $2.77 million.
- Intermediary
- Morton, the Canadian agent of Eagle, used a Canadian corporation (owned and controlled by Morton) to help conceal the bribe.
- Reporting Requirements
- No
- Total Combined Monetary Sanction
- $ 0
Defendants
George V. Morton
- Citation
- United States v. Morton, No. 3:90-cr-061 (N.D. Tex. 1990)
- Disposition
- Plea Agreement
- Defendant Jurisdictional Basis
- Conspiracy, Agent of Issuer
- Defendant's Citizenship
- Canada
- Individual Sanction
- 36-Months Probation.
Blondek, John
- Citation
- U.S. v. Blondek, 741 F. Supp. 116 (N.D. Tex. 1990);
- FCPA Statutory Provision
-
- Aiding and Abetting: Anti-Bribery
- Other Statutory Provision
- Aiding and Abetting (Travel Act); Travel Act.
- Defendant Jurisdictional Basis
- Conspiracy, Agent of Issuer
- Defendant's Citizenship
- United States
Vernon R. Tull
- Citation
- U.S. v. Blondek, 741 F. Supp. 116 (N.D. Tex. 1990);
- FCPA Statutory Provision
-
- Aiding and Abetting: Anti-Bribery
- Other Statutory Provision
- Aiding and Abetting (Travel Act); Travel Act.
- Defendant Jurisdictional Basis
- Conspiracy, Agent of Issuer
- Defendant's Citizenship
- United States
Donald Castle
- Citation
- U.S. v. Blondek, 741 F. Supp. 116 (N.D. Tex. 1990);
- Other Statutory Provision
- Aiding and Abetting (Travel Act); Travel Act.
- Disposition
- Charges Dismissed
- Defendant Jurisdictional Basis
- Conspiracy
- Defendant's Citizenship
- Canada
Darrell W.T. Lowry
- Citation
- U.S. v. Blondek, 741 F. Supp. 116 (N.D. Tex. 1990);
- Other Statutory Provision
- Aiding and Abetting (Travel Act); Travel Act.
- Disposition
- Charges Dismissed
- Defendant Jurisdictional Basis
- Conspiracy
- Defendant's Citizenship
- Canada
Eagle Bus Manufacturing, Inc.
- Citation
- U.S. v. Eagle Bus Mfg. Inc., No. B-91-171 (S.D. Tex. 1991).
- Disposition
- Complaint and Consent Order
- Defendant Jurisdictional Basis
- Domestic Concern
- Defendant's Citizenship
- United States
- Individual Sanction
- Permanent Injunction
