United States v. Young & Rubicam, Inc., Arthur R. Klein, Thomas Spangenberg, Arnold Foote, Jr., Eric Anthony Abrahams, Steven M. McKenna (D. Conn. 1990)
Case Details
- Case Name
- United States v. Young & Rubicam, Inc., Arthur R. Klein, Thomas Spangenberg, Arnold Foote, Jr., Eric Anthony Abrahams, Steven M. McKenna (D. Conn. 1990)
- Foreign Official
- An advisor to the Jamaica Tourist Board and the Jamaican Minister of Tourism.
- Date of Conduct
-
1981 to 1986
- Nature of Business
- Advertising and marketing by Young & Rubicam, Inc. (“Y&R”), a New York corporation and a domestic concern.
- Influence to be Obtained
- Young & Rubicam (Y & R), Arthur R. Klein (Executive Vice-President), and Thomas Spangenberg (Vice-President and Account Executive) made various payments from 1891 to 1986 to Arnold Foote, Jr. and Eric Anthony Abrahams to influence them to use their positions and influence with the Jamaica Tourist Board to obtain and retain Y & R as their advertising agency. A company, Ad Ventures, was set up on Grand Cayman Island to hide the kickback scheme.
- Enforcement
- Y&R pleaded guilty to a one-count information charging conspiracy to bribe a foreign official and was fined $500,000. Klein, Spangenberg, Foote, Abrahams, and McKenna were charged with violations of the FCPA and RICO. Those charges against the individual defendants were subsequently dismissed.
- Amount of the Value
- 15% of the commission that Y&R received for the advertising budget of the Jamaica Tourist Board (about $180,000 per year).
- Amount of Business Related to Payment
- $3.75 million.
- Intermediary
- A company, Ad Ventures, was set up on Grand Cayman Island by the advisor to the Jamaica Tourist Board and an associate to hide the kickback scheme.
- Reporting Requirements
- No
Defendants
Young & Rubicam, Inc.
- Citation
- United States v. Young & Rubicam, Inc., 741 F. Supp. 334 (D. Conn. 1990).
- Other Statutory Provision
- RICO; Aiding and Abetting (RICO).
- Disposition
- Plea Agreement
- Defendant Jurisdictional Basis
- Domestic Concern, Conspiracy
- Defendant's Citizenship
- United States
- Individual Sanction
- $500,000.
Arthur R. Klein
- Citation
- United States v. Young & Rubicam, Inc., 741 F. Supp. 334 (D. Conn. 1990).
- Other Statutory Provision
- RICO; Aiding and Abetting (RICO).
- Disposition
- Charges Dismissed
- Defendant Jurisdictional Basis
- Conspiracy, Agent of Domestic Concern
- Defendant's Citizenship
- United States
Thomas Spangenberg
- Citation
- United States v. Young & Rubicam, Inc., 741 F. Supp. 334 (D. Conn. 1990).
- Other Statutory Provision
- RICO; Aiding and Abetting (RICO).
- Disposition
- Charges Dismissed
- Defendant Jurisdictional Basis
- Conspiracy, Agent of Domestic Concern
- Defendant's Citizenship
- United States
Arnold Foote, Jr.
- Citation
- United States v. Young & Rubicam, Inc., 741 F. Supp. 334 (D. Conn. 1990).
- Other Statutory Provision
- RICO; Aiding and Abetting (RICO).
- Disposition
- Charges Dismissed
- Defendant Jurisdictional Basis
- Conspiracy
- Defendant's Citizenship
- Jamaica
Eric Anthony Abrahams
- Citation
- United States v. Young & Rubicam, Inc., 741 F. Supp. 334 (D. Conn. 1990).
- Other Statutory Provision
- RICO; Aiding and Abetting (RICO).
- Defendant Jurisdictional Basis
- Conspiracy
- Defendant's Citizenship
- Jamaica
Steven M. McKenna
- Citation
- United States v. Young & Rubicam, Inc., 741 F. Supp. 334 (D. Conn. 1990).
- Other Statutory Provision
- Perjury.
- Defendant Jurisdictional Basis
- Conspiracy
- Defendant's Citizenship
- United States
