United States v. Richard T. Bistrong (D.D.C. 2010)

• Case Name
• United States v. Richard T. Bistrong (D.D.C. 2010)

• Date Filed
• 01/21/2010

• Enforcement Agency
• DOJ

• Countries
• Netherlands, Nigeria

• Foreign Official
• U.N. procurement official, Dutch procurement officer, and an official with the Independent National Election Commission of Nigeria (“INECN”).

• Date of Conduct
• 2001 to 2006

• Nature of Business
• Military and law enforcement equipment.  Richard T. Bistrong, a U.S. citizen, was vice-president for international sales of Armor Holdings, Inc., a protective equipment company headquartered in Jacksonville, Florida.  

• Influence to be Obtained
• From 2001 to 2006, Bistrong and others used agents and consultants to make corrupt payments to foreign officials to obtain business for a protective equipment company and then concealed those payments by falsifying invoices.  Bistrong made payments through an agent to a U.N. procurement official to obtain non-public information about other bids submitted for a contract to supply U.N. peacekeeping forces with body armor.  Bistrong also used a third-party intermediary to make payments based on an invoice for marketing services to a Dutch procurement officer who used his influence to have the National Police Services Agency of the Netherlands issue a tender that could be satisfied only by pepper spray manufactured by Bistrong’s employer.  Further, Bistrong admitted that he had instructed a colleague to pay a kickback to a company designated by an official with INECN in exchange for INECN’s purchase of fingerprint ink pads from Bistrong’s employer.
   
  According to media reports, Bistrong is the individual who facilitated introductions between undercover U.S. government agents and the 22 members of the military and law enforcement products industry who were later charged with offering bribes to the Minister of Defense of an unnamed African country (the so-called “SHOT-Show” cases).  Jonathan Spiller, former CEO of Armor Holdings, was one of the 22 executives and employees.  Armor Holdings became a subsidiary of BAE Systems in 2007 and voluntarily disclosed the unlawful conduct to the DOJ and SEC.
   

• Enforcement
• On January 21, 2010, the DOJ filed a criminal information charging Bistrong with conspiracy to violate the FCPA’s anti-bribery provision, its books-and-records provisions, and the Department of Commerce’s export license requirements.  On September 16, 2010, Bistrong pleaded guilty to one count of conspiracy to violate the FCPA.  Prior to his sentencing, the DOJ requested that Bistrong be spared jail based on his “extraordinary cooperation.”  However, on July 31, 2012, Bistrong was sentenced to 18 months in prison followed by 36 months’ probation.  
   
  Meanwhile, the SHOT-Show cases were dismissed in their entirety in February 2012. 
   
  Separately, Armor Holdings, Inc. entered into a non-prosecution agreement with the DOJ, agreeing to pay a $10.29 million fine.  Armor Holdings also signed an agreement with the SEC, consenting to entry of a permanent injunction against further violations and agreeing to pay $1,552,306 in disgorgement, $458,438 in prejudgment interest, and a civil money penalty of $3,680,000.  
   

• Amount of the Value
• Approximately $4.4 million.

• Amount of Business Related to Payment
• At least $8.4 million.

• Intermediary
• Agents

• Compliance Monitor
• No

• Reporting Requirements
• No

• Case is Pending?
• No

• Related Enforcement Actions
• SEC v. Armor Holdings, Inc. (2012)  
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  United States v. Helmie Ashiblie (D.D.C. 2009)
  United States v. Andrew Bigelow (D.D.C. 2009)
  United States v. R. Patrick Caldwell and Stephen Gerard Giordanella (D.D.C. 2009)
  United States v. Yochanan R. Cohen (D.D.C. 2009)
  United States v. Haim Geri (D.D.C. 2009)
  United States v. John Gregory Godsey and Mark Frederick Morales (D.D.C. 2009)
  United States v. Amaro Goncalves (D.D.C. 2009)
  United States v. Saul Mishkin (D.D.C. 2009)
  United States v. John M. Mushriqui and Jeana Mushriqui (D.D.C. 2009)
  United States v. David Painter and Lee Wares (D.D.C. 2009)
  United States v. Pankesh Patel (D.D.C. 2009)
  United States v. Ofer Paz (D.D.C. 2009)
  United States v. Jonathan M. Spiller (D.D.C. 2009)
  United States v. Israel Weisler and Michael Sacks (D.D.C. 2009)
  United States v. John Benson Weir III (D.D.C. 2009)
  

Richard T. Bistrong

• Citation
• United States v. Bistrong, No. 1:10-cr-0021 (D.D.C. 2010)

• Date Filed
• 01/21/2010

• Filed Under Seal
• No

• FCPA Statutory Provision
• • Books-and-Records
  • Conspiracy: Anti-Bribery

• Other Statutory Provision
• Conspiracy (International Emergency Economic Powers Act; Expert Administration Regulations).

• Disposition
• Plea Agreement

• Defendant Jurisdictional Basis
• Conspiracy, Agent of Issuer

• Defendant's Citizenship
• United States

• Individual Sanction
• 18-Months Imprisonment.