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SEC v. Thomas Wurzel

 
:
United Industrial Corporation - Wurzel, Thomas
:
SEC Civil
:
May 29, 2009
:
SEC v. Thomas Wurzel
:
SEC v. Wurzel, No. 1:09-cv-1005 (D.D.C. 2009)
:
Aerospace/Defense
:
Egypt
:
2001; 2002
:
Egyptian Air Force officials
:
Thomas Wurzel settled this action with the SEC without admitting or denying the following facts alleged in the SEC's complaint. In late 2001 and throughout 2002, Wurzel was President of California-based ACL Technologies, Inc. ("ACL"), an indirect, wholly-owned subsidiary of United Industrial Corporation ("UIC"). The complaint alleges that during that time, Wurzel authorized multiple payments to an ACL foreign agent in connection with a military aircraft depot ACL was building for the Egyptian Air Force ("EAF") in Cairo, Egypt, while he knew or consciously disregarded the high probability that the agent would offer, provide, or promise at least a portion of such payments to active EAF officials for the purpose of influencing such officials to obtain or retain business for UIC through ACL.

Allegedly as a result of bribe payments, the EAF recommended to the US Air Force and a defense contractor the award of a Contract Engineering Technical Services contract to ACL with gross revenues of approximately $5.3 million and net profit of $267,571.

Wurzel consented to the entry of a final judgment enjoining him from future FCPA violations and requiring him to pay a civil penalty.

The SEC instituted a settled administrative proceeding against UIC in a related action.
:
Aiding and abetting anti-bribery, Aiding and abetting books and records, Aiding and abetting internal controls, Anti-bribery (Domestic Concern), Books and records (Individual), Internal Controls (Individual)
:
Civil penalty, Civil Settlement, Injunction/Cease and desist
:
civil penalty
:
35,000
:
0
:
Aider/abettor, Officer of Issuer, Person (B&R/internal controls)
:
President
:
U.S.
:
Contract Procurement/Retention
:
5,300,000
:
Wire/check
:
Sales Agent/Consultant
:
Not stated.
:
Egypt
:
United States
:
The government alleged that Wurzel possessed the requisite mental state by his conscious disregard for the high probability that the agent would use the payments he received to pay bribes. The complaint describes "circumstances" which "strongly indicated" that the agent would use the monies he received to make illicit payments. Notably, the agent informed Wurzel that monies were required to "secure team loyalty," erase "doubts about commitment," and "motivate people."
:
No