Richard H. Liebo ("Liebo") was a vice president in charge of the Aerospace Division of Napco International, Inc. Napco International, Inc. ("Napco"), was a corporation organized under the laws of Minnesota with its principal offices in Hopkins, Minnesota, and was engaged in, among other things, the business of selling military equipment and supplies to, among others, certain developing nations. In May 1984, the defendant Venturian Corp. reorganized and was renamed Napco International, Inc. and continued its business of the sale of military equipment and supplies.
In order to strengthen the security of the United States, its allies, and promote world peace, the Congress authorized the Foreign Military Sales ("FMS") program. Under this program, loans were made to certain foreign governments to finance the purchase of defense items. FMS loan funds were disbursed by the Federal Financing Bank ("FFB"), and the Defense Security Assistance Agency ("DSAA") was responsible for directing, administering and supervising FMS loans.
In February 1983, the Government of Niger entered into a contract with a West German aircraft maintenance firm, Dornier Reparaturwerft GmbH ("Dornier") to perform maintenance on an aircraft. However, the Government of Niger had insufficient funds to pay for Dornier' s services and Dornier sought to affiliate with a United states contractor so that the Government of Niger could qualify for United States Government FMS financing. Around June 1983, Dornier began cooperating with Napco in order to tap into the FMS funds. From December 1983 to March 1987, Napco and the Government of Niger entered into four purchase contracts for aircraft parts, maintenance and other defense items. Three of the contracts were approved by the DSAA for approximately $3.2 million. In order to obtain and retain the contracts, Napco and Richard H. Liebo made $130,816.83 in improper payments to Tahirou Barke Doka (the First Counselor of the Niger Embassy in Washington, D.C.) and Captain Ali Tiemogo (Chief of Maintenance for the air force of the Government of Niger), both officials of the Government of Niger.
On May 6, 1989, the DOJ filed an indictment against Liebo, charging him with conspiracy to violate the FCPA, violating the anti-bribery and books and records provisions, aiding and abetting the anti-bribery and books and records provisions, aiding and abetting the preparation of false corporate income tax returns, and aiding and abetting the making of false material statements and representation to the DSAA. On January 31, 1992, Liebo was found guilty of aiding and abetting the anti-bribery provisions of the FCPA, and making a false statement to the DSAA. Liebo was sentenced to 18 months in prision. Liebo appealed, and received a retrial based on newly discovered evidence that his action in buying airline tickets for a Niger Official's honeymoon was approved by the president of Napco, the company for which he worked. The president's approval was strong evidence from which the jury could have found that Liebo acted at his supervisor's direction and therefore did not act “corruptly.” Liebo was convicted at the retrial of aiding and abetting the anti-bribery provisions, and making false statements to the DSAA. He was sentenced to three years probation, two months home detention, and 400 hours of community service. Liebo served only 2 of the 18 months in prision.
In a related action, on May 25, 1989, Napco pleaded guilty, the company was ordered to pay a $785,000 fine, restitution in the amount of $140,000 to the DSAA, and restitution in the amount of $75,000 to the Internal Revenue Service.
