SEC v. Thomas Wurzel (D.D.C. 2009)

• Case Name
• SEC v. Thomas Wurzel (D.D.C. 2009)

• Date Filed
• 09/30/2016

• Enforcement Agency
• SEC

• Countries
• Egypt

• Foreign Official
• Egyptian Air Force officials.

• Date of Conduct
• 2001 to 2002

• Nature of Business
• Thomas Wurzel (“Wurzel”), an American citizen, was President of ACL Technologies, Inc. (“ACL”), a wholly-owned subsidiary of United Industrial Corporation (“UIC”), an aerospace and defense systems contractor incorporated in Delaware.  In 2007, after the conduct described herein occurred, an affiliate of Textron Inc. acquired UIC.

• Influence to be Obtained
• As alleged in the complaint, from late 2001 through 2002, Wurzel authorized multiple payments to an agent to secure a Contract Engineering Technical Services contract for ACL in connection with a project to build a F‑16 combat aircraft depot for the EAF and provide, operate, and train labor to use the testing equipment for the depot.  The complaint alleges that, in or around 1996, Wurzel was involved with hiring the agent, who was selected due to his connections with the Egyptian military community.  The complaint further alleges that Wurzel knew or consciously disregarded the high probability that the agent would offer, provide, or promise at least a portion of such payments to active EAF officials.

• Enforcement
• On May 29, 2009, the SEC filed a complaint alleging that Wurzel violated, and aided and abetted violations of, the anti‑bribery, internal controls, and books and records provisions of the FCPA.  Without admitting or denying the allegations, Wurzel consented to the entry of a final judgment permanently enjoining him from future violations of the FCPA.  In addition, Wurzel paid a $35,000 civil penalty.
  
  On the same day, UIC consented to an SEC order requiring it to cease and desist from causing any future violations of the FCPA, under which UIC paid $337,679.42 in disgorgement and prejudgment interest.

• Amount of the Value
• Not provided.  Three forms of illicit payments were made to an agent, with at least some of those payments allegedly being passed on to government officials:  (1) payments to the agent ostensibly for labor subcontracting work; (2) a $100,000 advance payment to the agent for “equipment and materials”; and (3) a $50,000 payment to the agent for “marketing services.”

• Amount of Business Related to Payment
• A contract with gross revenues of approximately $5.3 million and net profits of $267,000.

• Intermediary
• Agent

• Citizenship of Parent Entity
• United States

• Total Sanction
• $ 35,000

• Compliance Monitor
• No

• Reporting Requirements
• No

• Case is Pending?
• No

• Total Combined Monetary Sanction
• $ 35,000

• Related Enforcement Actions
• In the Matter of United Industrial Corporation (2009)
  

Thomas Wurzel 

• Citation
• SEC v. Wurzel, No. 1:09-cv-1005 (D.D.C. 2009).

• Date Filed
• 09/30/2016

• Filed Under Seal
• No

• FCPA Statutory Provision
• • Aiding and Abetting: Anti-Bribery
  • Aiding and Abetting: Books-and-Records
  • Anti-Bribery

• Other Statutory Provision
• Circumventing Internal Controls/Falsifying Books and Records

• Disposition
• Complaint and Consent Order

• Defendant Jurisdictional Basis
• Agent of Issuer

• Defendant's Citizenship
• United States