A&O Shearman FCPA Digest | United States v. Harry G. Carpenter and W.S. Kirkpatrick & Co., Inc. (D.N.J. 1985)

Source Documents

Case Name
United States v. Harry G. Carpenter and W.S. Kirkpatrick & Co., Inc. (D.N.J. 1985)

Foreign Official
Various Nigerian political and military officials in the Air Force, the National Party, the Medical Group, the Defense Minister and other key defense personnel.

Nature of Business
Sale of Aero medical equipment consisting of ejection-seat trainers, disorientation simulators and other devices to the Nigerian government by W.S. Kirkpatrick, Inc. (“Kirkpatrick”), a New Jersey corporation and a domestic concern.

Influence to be Obtained
To obtain a $10.8 million contract from the Nigerian government to furnish equipment for an Aero Medical Center at Kaduna Air Force Base in Nigeria.

Enforcement
Kirkpatrick pleaded guilty to the single count of bribery under the FCPA and was fined $75,000, to be paid over a five-year period. Carpenter, former chairman of the board and chief executive officer of Kirkpatrick, pleaded guilty to the single count of bribery of a foreign official under the FCPA. He received a suspended sentence, was placed on probation for three years, was required to do community service work and was fined $10,000.

Intermediary
Kirkpatrick’s local agent in Nigeria, an entrepreneur who negotiated with various Nigerian officials and set up and controlled two Panamanian bearer share corporations, Deriks and Los, to receive the bribe payments from Kirkpatrick.