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
US Assisting Agencies: Unknown
Foreign Enforcement Action/Investigation: Unknown
Foreign Assisting Agencies: Unknown
Origin of the Proceeding:
Unknown
Whistleblower:
Unknown
Case Status:
Resolved
Summary
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 sell Cook Islands postage stamps outside of the Cooks Islands. In return, the government would receive 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 $NZ337,000 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 $NZ337,000 in restitution.
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