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Enforcement Action Dataset

 

Docket or Case Number:    79-CR-372

Court:    District of Columbia

Initiation Date:    08/02/1979  Information

Prosecuting Agency:    US Department of Justice

Name of Prosecuting Attorneys:   

  • Carl S. Rauh, United States Attorney
  • Peter B. Clark, Deputy Chief, Fraud Section, Criminal Division
  • Richard S. Shine, Chief, Multinational Fraud Unit, Fraud Section, Criminal Division
  • George J. Medelson, Deputy Chief, Multinational Fraud Branch

Assisting Agencies:    N/A

Type of Action:    DOJ Criminal Proceeding

Origin of the Proceeding:    N/A

Whistleblower:    Unknown

Case Status:    Resolved


Summary  Information

Kenny International Corp. ("Kenny International") was a corporation organized and existing under the laws of the State of New York. The company was run by Finbar B. Kenny ("Kenny") who was Chairman of the Board, President and the majority shareholder.

Kenny and the Government of the Cook Islands had a stamp distribution agreement, which allowed Kenny to distribute and sale Cook Islands postage stamps outside of the Cooks Islands. In return, the government would recieve half of the revenue in stamp sales. In order to secure the renewal of the stamp distribution agreement, Sir Albert Henry (leader of the Cook Island Party) needed to win the upcoming election. To secure the renewal of the stamp contract, Kenny International paid $NZ337,OOO in transportation costs to fly Sir Albert Henry's supporters to the Cook Islands. In March 1978, as a result of the votes cast by Sir Albert Henry's supporters, the Cook Islands Party won the election. In July 1978, the election was contested, and the Honorable Chief Justice Donne of the High Court of the Cook Islands disallowed the votes of the Cook Islands Party supporters whose travel had been subsidized. As a result Sir Albert Henry was removed from office.

On August 2, 1979, Kenny International pleaded guilty to violating the anti-bribery provisions of the FCPA. At the same time, without admitting or denying the DOJ's allegations, Kenny International consented to the entry of a final judgment of permanent injunction from future violations of the FCPA. Kenny International will pay a $50,000 fine.

On August 2, 1979, without admitting or denying the DOJ's allegations, Kenny consented to the entry of a final judgment of permanent injunction from future violations of the FCPA. Kenny also pleaded guilt in the High Court of Cooks Islands, and agreed to pay $NZ337,OOO in restitution.

Country(ies) involved:    Cook Islands

Sanction to Bribe Ratio:    $50,000 / $347,110 = 14.40 %

Sanction to Revenue Ratio:    N/A

Sanction to Profit Ratio:    N/A

Number of Related Enforcement Actions (Including This Enforcement Action):    1

Country(ies) involved:    Cook Islands

Total $ Bribery Payments:    $337,000

Total $ Revenue Generated from Bribery:    N/A

Total $ Profit Earned or Expenses Avoided from Bribery:    N/A

Total $ Monetary Sanctions:    $50,000

Sanction to Bribe Ratio:    $50,000 / $347,110 = (14.40 %)

Sanction to Revenue Ratio:    N/A

Sanction to Profit Ratio:    N/A

Name:    Kenny International Corporation

Place of Incorporation:    United States

HQ Country(ies):    United States

Entity Type:    Private Company

FCPA Claims:    Anti-Bribery, Primary, Domestic Concern (15 U.S.C. § 78dd-2)

Related Claims:    N/A

Statutory Basis for FCPA Jurisdiction:    Domestic Concern


Name:    Finbar B. Kenny

Employers & Positions:    Kenny International Corporation - President and Chairman of the Board

Country:    United States

FCPA Claims:    Anti-Bribery, Primary, Domestic Concern (15 U.S.C. § 78dd-2)

Related Claims:    N/A

Statutory Basis for FCPA Jurisdiction:    Domestic Concern (Officer) ; Domestic Concern (Director)

Period of Bribery:   1978 - 1978

Total Bribery Payments:    $337,000

Total Revenue Generated from Bribery:    N/A

Total Profit Earned or Expenses Avoided from Bribery:    N/A

Country(ies) involved:    Cook Islands

Officials Potentially Influenced (Name; Title; Organization): 

  • Name N/A, Leader/Premier; Cook Islands party

Affiliates, Subsidiaries and Joint Ventures Involved in the Misconduct:    N/A

Third-Party Intermediary:    N/A

Type of Bribe:   Money, Travel/Lodging

Cash, Wire or Check:    Wire Transfer

Purpose of Bribe:    Influence the adjudication of disputes, lawsuits, or enforcement actions, Obtain/retain business

TRANSACTION OVERVIEW
Paid travel for New Zealand Cook Island Party supporters to win the election

Period of Bribery:   1978 – 1978

Total Bribery Payments:    $337,000

Total Revenue Generated from Bribery:    N/A

Total Profit Earned or Expenses Avoided from Bribery:    N/A

Country(ies) involved:    Cook Islands

Officials Potentially Influenced (Name; Title; Organization):  

  • Name N/A, Leader/Premier; Cook Islands party;

Affiliates, Subsidiaries and Joint Ventures Involved in the Misconduct:    N/A

Third Party Intermediary:    N/A

Type of Bribe:   Money, Travel/Lodging

Cash, Wire or Check:    Wire Transfer

Purpose of Bribe:    Influence the adjudication of disputes, lawsuits, or enforcement actions, Obtain/retain business

Misconduct by Subsidiary?  No

M&A Negotiated or Completed During Misconduct, Investigation, or Resolution?     No

N/A

Mitigating Factors Referenced by the Government (Company Defendants):

Defendant Self-Report Cooperation Voluntary Remedial Measures Misconduct Limited to Low Level Individuals Other factors
Kenny International Corporation          

Mitigating Factors Referenced by the Government (Individual Defendants):

Defendant Cooperation
Finbar B. Kenny  

Aggravating Factors Referenced by the Government (Company Defendants):

Defendant Insufficient Cooperation Insufficient Remedial Measures
Kenny International Corporation    

Aggravating Factors Referenced by the Government (Individual Defendants):

Defendant Insufficient Cooperation
Finbar B. Kenny  

Total Monetary Sanctions for the Action:    $50,000

Case Status:    Resolved


Disposition:    Plea Agreement

Date of Disposition:    08/02/1979

Kenny International Corporation

—  Total Monetary Sanctions for Defendant:    $50,000

—  Organizational Probation:    None

—  Compliance Obligation:    No

—  Reporting Obligation:    No Applicable

—  Admission of Guilt/Acceptance of Responsibility:    Yes


Finbar B. Kenny

—  Total Monetary Sanctions for Defendant:    $0

—  Imprisonment/Incarceration:    None

—  Probation/Supervised Release:    None

—  House Arrest:    None

—  Community Service:    None

—  Admission of Guilt/Acceptance of Responsibility:    Yes

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