Jump to content Jump to menu
Why Register?

Shearman FCPA Website: Cases Logo Shearman & Sterling LLP FCPA.Shearman.com: The One-Stop Resource on the Foreign Corrupt Practices Act

U.S. v. Nam Quoc Nguyen, et al.

 
:
Nexus - Lukas, Joseph T.
:
DOJ Criminal
:
September 4, 2008
:
U.S. v. Nam Quoc Nguyen, et al.
:
U.S. v. Nguyen, et al., No. 2:08-cr-00522 (E.D. Pa. 2008)
:
Aerospace/Defense
:
Viet Nam
:
1999; 2000; 2001; 2002; 2003; 2004; 2005
:
Officials of multiple Vietnamese government agencies, including the commercial branches of Vietnam's Ministries of Transport, Industry, and Public Safety
:
According to the indictment, Nexus Technologies Inc. ("Nexus"), a privately-held Delaware company, allegedly purchased a wide variety of equipment and technology, including underwater mapping equipment, bomb containment equipment, helicopter parts, chemical detectors, satellite communication parts, and air tracking systems, for export to agencies of the government of Vietnam. From approximately 1999 through 2008, employees of Nexus allegedly engaged in a conspiracy to pay Vietnamese government officials bribes totaling at least $150,000 in order to secure lucrative contracts for Nexus. Customers are alleged to have included multiple Vietnamese government agencies, including the commercial branches of Vietnam's Ministries of Transport, Industry, and Public Safety. Joseph Lukas was engaged in a joint venture with Nexus until approximately October 2005. His duties included overseeing Nexus' New Jersey office and identifying and negotiating with suppliers. Nam Nguyen, the founder and president of Nexus, allegedly negotiated contracts and bribes with officials while Lukas established relationships with Vietnamese government officials, paid or cause to be paid bribes, and negotiated with vendors in the United States. Kim and An Nguyen allegedly arranged for the transfer of funds at Nam Nguyen's direction. The direct FCPA count against Joseph Lukas charged him, along with Nam Nguyen, Kim Nguyen, and Nexus for a wire transfer of $18,854 on approximately August 4, 2005 from the account of Nexus to a Hong Kong company for the benefit of a Vietnamese official. On September 4, 2008, Nexus and the individual defendants were indicted by a federal grand jury in Philadelphia on one count of conspiracy to violate the FCPA and four substantive counts of violating the FCPA.

On October 8, 2008, Nam Nguyen pleaded not guilty on behalf of Nexus. On June 29, 2009, Lukas pleaded guilty in connection with his participation in the conspiracy to bribe Vietnamese government officials. Lukas admitted that from 1999 to 2005, he and other employees of Nexus agreed to pay, and knowingly paid, bribes to Vietnamese government officials in exchange for contracts with the agencies for which the officials worked. The bribes were falsely described as "commissions" in the company's records. At sentencing, currently scheduled for April 6, 2010, Lukas faces a maximum sentence of 10 years in prison.

On October 29, 2009, the government entered a superseding indictment against the remaining individual defendants and Nexus, adding charges of conspiracy to violate the Travel Act and to launder money, nine substantive counts of violating the Travel Act, nine substantive counts of money laundering, and five additional counts of violating the FCPA. On March 16, 2010, Nexus, Nam Nguyen, Kim Nguyen, and An Nguyen pleaded guilty to conspiracy, money laundering, and violating the FCPA. All but Kim Nguyen also pleaded guilty to violating the federal Travel Act. As part of the plea, Nexus agreed to cease operations in the U.S. and Vietnam within 90 days.

In September, 2010, Lukas was sentenced to 2 years of probation plus 200 hours of community service, plus a $1000 fine and $200 special assessment.
:
Conspiracy - Anti-Bribery
:
Fine, Plea, Probation
:
1,200
:
0
:
Domestic Concern
:
Other Senior Officer
:
U.S.
:
Contract Procurement/Retention
:
500,000
:
Wire/check
:
Direct
:
150,000
:
Viet Nam
:
Hong Kong, United States
:
No