United States v. James K. Tillery and Paul G. Novak (S.D. Tex. 2008)
Date Filed
01/17/2008
Enforcement Agency
DOJ
Countries
Nigeria, Ecuador
Foreign Official
Officials of Nigerian Petroleum Corporation and National Petroleum Investment Management Services; a senior Executive-branch Nigerian government official; officials of the dominant political party in Nigeria; PetroEcuador and PetroComercial officials.
Date of Conduct
2003 to 2005
Nature of Business
Procurement of contracts for oil and gas pipeline construction projects by Willbros International Inc. (“Willbros International”), a wholly-owned subsidiary of Houston-based Willbros Group, Inc. (“Willbros Group”).
Influence to be Obtained
James K. Tillery, a former U.S. citizen, was an officer and employee of Willbros International and another Willbros Group subsidiary. Paul G. Novak, a U.S. citizen, represented two consulting companies that allegedly acted as conduits for corrupt payments authorized by Willbros International employees to foreign officials in Nigeria. Tillery and others allegedly authorized Novak to enter into corrupt negotiations with, and make payments to, Nigerian officials who had influence over awarding government construction contracts to obtain and retain favorable treatment in oil and gas pipeline construction contract decisions for Willbros International and Willbros Group. By late 2004, more than $1 million in corrupt payments allegedly had been paid to Nigerian officials, with millions more to be paid under commitments made to Nigerian officials. From January to March 2005, Tillery and Novak’s co-conspirators raised approximately $1.85 million to fulfill a portion of the remaining commitments. The money was then provided to consultants for delivery to Nigerian officials. Tillery and Novak’s co-conspirators included Jim Bob Brown and Jason Edward Steph, former Willbros International employees who separately have pleaded guilty to FPCA violations, a Nigerian national who performed purported consulting services for one or more of Willbros’s Nigerian subsidiaries, and Nigeria-based employees of a major German construction and engineering firm. Additionally, Tillery and Novak, along with several other individuals, allegedly agreed to make corrupt payments of at least $300,000 to Ecuadorian officials to obtain a contract for the rehabilitation of a gas pipeline for Willbros International. Novak, at the direction of Tillery, allegedly made
Enforcement
On January 17, 2008, a grand jury indicted Tillery and Novak on one count of conspiracy to violate the FCPA and two substantive counts of violating the FCPA. The indictment also charged one count of conspiracy to commit money laundering. The indictment remained under seal until December 19, 2008, when U.S. authorities arrested Novak at a Houston airport. He was returning to the U.S. from South Africa after his U.S. passport was revoked. On January 27, 2009, the court granted the return of Novak’s passport. On November 12, 2009, Novak pleaded guilty to one count of conspiracy to violate the FCPA and one substantive count of violating the FCPA. On May 3, 2013, Novak was sentenced to 15 months in prison by U.S. District Judge Simeon T. Lake III of the Southern District of Texas. In addition to the prison sentence, Novak was ordered to pay a $1 million fine and to serve two years of supervised release following his release from prison. A Nigerian court halted American authorities’ attempts to extradite Tillery, an American who acquired Nigerian citizenship in 2009. Tillery remains a fugitive.
United States v. Tillery, et al., No. 4:08-cr-00022 (S.D. Tex. 2008).
Date Filed
01/17/2008
Filed Under Seal
No
FCPA Statutory Provision
Anti-Bribery
Conspiracy: Anti-Bribery
Other Statutory Provision
Conspiracy (Money Laundering).
Disposition
Fugitive
Defendant Jurisdictional Basis
Agent of Issuer, Agent of Domestic Concern
Defendant's Citizenship
United States
Individual Sanction
Pending
Paul G. Novak
Citation
United States v. Tillery, et al., No. 4:08-cr-00022 (S.D. Tex. 2008).
Date Filed
01/17/2008
Filed Under Seal
No
FCPA Statutory Provision
Anti-Bribery
Conspiracy: Anti-Bribery
Disposition
Plea Agreement
Defendant Jurisdictional Basis
Agent of Issuer, Agent of Domestic Concern
Defendant's Citizenship
United States
Individual Sanction
15-Months Imprisonment; $1,000,000 Criminal Fine.
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