Peter B. Clark, Senior Litigation Counsel, Fraud Section, Criminal Division
Marie A. O'Rourke, Trial Attorney, Fraud Section, Criminal Division
Marvin Collins, United States Attorney
US Assisting Agencies: Unknown
Foreign Enforcement Action/Investigation: Unknown
Foreign Assisting Agencies: Unknown
Origin of the Proceeding:
Unknown
Whistleblower:
Unknown
Case Status:
Resolved
Summary
Eagle Bus Manufacturing, Inc. (Eagle) was a corporation engaged in the manufacture and sale of buses and maintained its place of business in Brownsville, Texas. Eagle was a subsidiary of Greyhound Lines, Inc., a public company. John Blondek was the president of Eagle until September 1989. Vernon R. Tull was the vice president of Eagle responsible for marketing. Saskatchewan Transit Company (STC) was a corporation owned by the government of the Province of Saskatchewan, Canada and operated a bus transportation system in that Province. Darrell W.T. Lowry was the vice president of STC. Donald Castle was the president of STC.
According to the allegations in the charging documents, around July 1989, Eagle Bus Manufacturing, Inc., through its Canadian agent George V. Morton, negotiated the sale of 11 buses manufactured by Eagle to the Saskatchewan Transportation Company. Donald Castle and Darrell W.T. Lowry told George V. Morton that a payment of Canadian $50,000 would be necessary in order to obtain the contract. John Blondek authorized George V. Morton to make the payment.
On March 15, 1990, the DOJ filed an indictment against John Blondek, Vernon R. Tull, Darrell W.T. Lowry, and Donald Castle, charging them with conspiracy to violate the anti-bribery provisions of the FCPA. Lowry and Castle moved to dismiss the indictment against them on the grounds that they could not be prosecuted under the FCPA for accepting bribes as foreign officials. The court granted their motion, and the Fifth Circuit Court of Appeals affirmed the district court's order of dismissal. On May 22, 1991, the remaning case was transferred to the Southern District of Texas on motion of Blondek and Tull.
On July 24, 1991, the DOJ filed a six count Superseding Complaint in the Southern District of Texas against Blondek, Tull, Castle, and Lowry alleging (1) conspiracy to violate the anti-bribery provisions of the FCPA; (2-4) direct and aiding and abetting/causing violations of the anti-bribery provisions of the FCPA; and (5-6) direct and aiding and abetting/causing violations of the Travel Act. Blondek was charged on counts 1-3 and 6; Tull was charged on counts 1-4 and 6; Castle was charged on count 6; and Lowry was charged on counts 5 and 6. Blondek and Tull were tried and acquitted of all charges on October 12, 1991. Castle and Lowry were not apprehended and were fugitives. The DOJ moved to dismiss all charges against them in 1996.
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