United States v. Richard John Novak (E.D. Wash. 2006)

• Case Name
• United States v. Richard John Novak (E.D. Wash. 2006)

• Date Filed
• 10/05/2005

• Enforcement Agency
• DOJ

• Countries
• United States, Ghana, Liberia

• Foreign Official
• Two embassy officials of Liberia; Director of National Commission of Higher Education of Liberia; Director General of Higher Education of Liberia.  

• Date of Conduct
• 2002 to 2005

• Nature of Business
• So-called “diploma mill” universities and Internet-based universities that were falsely accredited and sold fraudulent degrees.

• Influence to be Obtained
• False accreditation for the universities from the government of Liberia and to induce officials to provide positive responses, including official documents, to inquiries about the universities and their legitimacy.

• Enforcement
• On March 20, 2006, Novak pleaded guilty to one count of violating the FCPA and an additional count of wire fraud and mail fraud.  On September 30, 2008, Novak was sentenced to 3 years’ probation, and 300 hours of community service.  Additional defendants involved in the scheme have pleaded guilty to various non-FCPA charges and have been sentenced.

• Amount of the Value
• Between $30,000 and $70,000.

• Amount of Business Related to Payment
• $2,345,326 in fraudulent products.

• Intermediary
• None

• Compliance Monitor
• No

• Reporting Requirements
• No

• Case is Pending?
• No

Richard John Novak

• Citation
• United States v. Novak, No. 05-cr-180 (E.D. Wash. 2006).

• Date Filed
• 10/05/2005

• Filed Under Seal
• No

• FCPA Statutory Provision
• • Anti-Bribery
  • Conspiracy: Anti-Bribery

• Other Statutory Provision
• Conspiracy (Wire Fraud); Conspiracy (Mail Fraud).

• Disposition
• Plea Agreement

• Defendant Jurisdictional Basis
• Domestic Concern, Conspiracy, Agent of Domestic Concern

• Defendant's Citizenship
• United States

• Individual Sanction
• 3-Years Probation.