Young & Rubicam, Inc. ("Y&R") was a New York corporation engaged in the advertising and marketing business on a world wide basis.
Arthur R. Klein was an Executive Vice President for Y&R.
Thomas Spangenberg was a Vice President and Account Executive for Y&R.
Steven M. McKenna was a Budget Manager and later Senior Vice President and Director of Business Affairs for Y&R.
Eric Anthony Abrahams was the Minister of Tourism of the Government of Jamaica.
Arnold Foote, Jr. was a prominent Jamaican citizen with close political ties to the Jamaican Labor Party and to the Administration of Prime Minister Edward Seaga. Foote served as Executive Chairman of Martin's Travel, an instrumentality of the Government of Jamaica. Foote also acted in an official capacity on behalf of the Minister of Tourism and the Jamaica Tourist Board as an advisor to the Government of Jamaica with respect to tourism, advertising and public relations matters, including the selection and retention of an advertising agency for the Jamaica Tourist Board.
According to the allegations in the indictment, beginning around October 1980, Y&R participated in a scheme to provide a series of kickback payments to Abrahams and Foote in an effort to be retained as the advertising agency for the Jamaica Tourist Board. Many of the kickbacks were paid through Ad Ventures, Ltd., a Cayman Islands corporation created specifically for the purpose of funneling the kickbacks to Foote and Abrahams.
On October 6, 1989, a grand jury returned a 3 count Indictment in the District of Connecticut against Y&R, Klein, Spangenberg, Abrahams, Foote, and McKenna. The first count alleged conpiracy to violate the anti-bribery provisions of the FCPA by Y&R, Klein, and Spangenberg. The second count alleged RICO violations against Y&R, Klein, Spangenberg, Abrahams, and Foote. The third count alleged perjury by McKenna.
On February 9, 1990, Y&R entered into a Plea Agreement with the DOJ. Under the terms of the agreement, Y&R pleaded guilty to one count of conspiracy to violate the FCPA and agreed to pay a monetary penalty of $500,000. The DOJ deemed it "expressly understood that this plea of guilty is in complete satisfaction of any Federal Criminal liability that Y&R and its present and former officers, managers, directors and employees (with the exception of Steven M. McKenna) may have arising out of the facts underlying this information." It appears that the charges against Klein and Spangenberg were subsequently dismissed. On November 11, 2010, on motion of the DOJ, the court ordered the Indictment against Foote dismissed and the warrant for his arrest withdrawn. The disposition of the charges against Abrahams and McKenna are not known.
