Former CEO Sentenced for Bribery

On February 23, 2012, in Houston, Texas, Albert Stanley, a former chairman of Kellogg, Brown & Root, Inc. (KBR), was sentenced to 30 months in prison, three years of supervised release and ordered to pay $10.8 million in restitution for conspiring to violate the Foreign Corrupt Practices Act. Two co-defendants were also sentenced in connection with the scheme: Jeffrey Tesler, of the United Kingdom, was sentenced to 21 months in prison, two years of supervised release and ordered to pay a $25,000 fine and forfeit $148,964,568. Wojciech Chodan, also of the United Kingdom, was sentenced to one year of probation and ordered to pay a $20,000 fine and forfeit $726,885. KBR was a member of the TSKJ joint venture company.  Between 1995 and 2004, TSKJ was awarded four engineering, procurement and construction (EPC) contracts, valued at more than $6 billion, by Nigeria Liquefied Natural Gas (LNG) Ltd., to build LNG facilities on Bonny Island.  From approximately 1994 through 2004, TSKJ, Stanley, Tesler, Chodan and others agreed to pay bribes to a wide range of Nigerian government officials in order to obtain and retain the EPC contracts.  The joint venture hired Tesler as a consultant to pay bribes to high-level Nigerian government officials, including top-level executive branch officials.  At crucial junctures preceding the award of the EPC contracts, Stanley and other co-conspirators met with successive top-level office holders in the executive branch of the Nigerian government to ask the office holders to designate a representative with whom TSKJ should negotiate bribes to Nigerian government officials.  TSKJ paid approximately $132 million to a Gibraltar corporation, controlled by Tesler during the course of the bribery scheme, for use, in part, to pay bribes to Nigerian government officials.

Source: IRS.gov


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