United States v. International Harvester Co. (S.D. Tex. 1982)
United States v. George S. McLean and Luis A. Uriarte (5th Cir. 1984)

• Case Name
• United States v. International Harvester Co. (S.D. Tex. 1982)
  United States v. George S. McLean and Luis A. Uriarte (5th Cir. 1984)

• Date Filed
• 11/16/1982

• Enforcement Agency
• DOJ

• Countries
• Mexico

• Foreign Official
• Two sub-directors of Pemex:  one was responsible for the purchase of goods and equipment, the other was responsible for the exploration and production of Mexican oil and natural gas.

• Date of Conduct
• 1977 to 1980

• Nature of Business
• Supplier and a sub-contractor for Crawford Enterprises, Inc. (“Crawford”) in sales of turbine compression equipment to Petroleos Mexicanos (“Pemex”), the national oil company of Mexico, by Solar Turbines Int’l (“Solar”), a division of International Harvester Co. (“Harvester”), a Delaware corporation and an issuer.

• Influence to be Obtained
• To obtain from Pemex purchase orders for turbine compression systems and related equipment for Solar and Crawford.

• Enforcement
• Harvester pled guilty to a single count of conspiracy to violate the FCPA, was fined $10,000, and paid prosecution costs of $40,000.  McLean, vice president of Solar, and Uriarte, the Latin American regional manager of Solar, were indicted in the Crawford prosecution and charged with conspiracy and aiding and abetting.  The court held that to convict an employee under the FCPA for acts committed for the benefit of his employer, the government must first convict the employer.  Because the government did not convict McLean’s employer, Harvester, the FCPA barred McLean’s prosecution on the substantive counts of FCPA violations.  Uriarte pled guilty and was sentenced to one year, suspended with unsupervised probation.

• Amount of the Value
• 5% of each Pemex purchase order, a total of $9.9 million.

• Amount of Business Related to Payment
• $112 million in contracts.

• Intermediary
• Grupo Delta, a Mexican corporation, which held itself out as Crawford’s sales representative in Mexico while actually acting as the conduit for the bribe payments to the Pemex officials.

• Total Sanction
• $ 50,000

• Compliance Monitor
• No

• Reporting Requirements
• No

• Case is Pending?
• No

International Harvester Co.

• Citation
• United States v. Int’l Harvester Co., No. 82-cr-00244 (S.D. Tex., Nov. 1982); 

• Date Filed
• 11/16/1982

• Filed Under Seal
• No

• FCPA Statutory Provision
• • Conspiracy: Anti-Bribery

• Other Statutory Provision
• None

• Disposition
• Plea Agreement

• Defendant Jurisdictional Basis
• Domestic Concern

• Defendant's Citizenship
• United States

• Individual Sanction
• $50,000 Criminal Sanctions.

George S. McLean 

• Citation
• United States v. McLean, 738 F.2d 655 (5th Cir. 1984), cert. denied, 470 U.S. 1050 (1985).

• Date Filed
• 11/16/1982

• Filed Under Seal
• No

• FCPA Statutory Provision
• • Conspiracy: Anti-Bribery

• Other Statutory Provision
• None

• Disposition
• Charges Dismissed

• Defendant Jurisdictional Basis
• Unknown

• Individual Sanction
• None

Luis A. Uriarte 

• Citation
• United States v. McLean, 738 F.2d 655 (5th Cir. 1984), cert. denied, 470 U.S. 1050 (1985).

• Date Filed
• 11/16/1982

• Filed Under Seal
• No

• FCPA Statutory Provision
• • Conspiracy: Anti-Bribery

• Other Statutory Provision
• None

• Disposition
• Plea Agreement

• Defendant Jurisdictional Basis
• Unknown

• Individual Sanction
• 1-Year Probation.