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United States v. John Joseph O'Shea

 
:
O'Shea, John Joseph
:
DOJ Criminal
:
November 16, 2009
:
United States v. John Joseph O'Shea
:
United States v. John Joseph O'Shea, No. 09-cr-00629 (S.D. Tex. Nov. 16, 2009)
:
Electrical/Electronics
:
Mexico
:
1997; 1999; 2003
:
Mexican state-owned electricity company officials
:
The former general manager of the Texas unit of ABB, John O'Shea, used a Mexican company as a sales representative for ABB on its Comison Federal de Electricidad ("CFE") contracts. Fernando Maya Basurto, a Mexican citizen, served as the principal of this company, which primarily served as a sales representative for foreign and domestic companies doing business with Mexican government agencies. One such agency, the CFE, was as an electrical utility company responsible for supplying electricity to most of Mexico. CFE would contract with foreign agencies for goods and services in performing its business. ABB, a Swiss electrical engineering company, sought contracts with the CFE.

In 1997, CFE awarded a $44 million contract (the SITRACEN contract) to ABB's Texas division to upgrade the backbone of Mexico's electrical system. In 2003, CFE awarded another multi-year contract (the Evergreen contract) to ABB's Texas unit for the performance of maintenance and upgrades on the SITRACEN network. To obtain these contracts, O'Shea authorized ABB's Texas division to make corrupt payments to the CFE using Basurto's company as a go-between. O'Shea allegedly got the 2003 deal by agreeing to give CFE officials 10% of the revenue from the contract. Both O'Shea and Basurto coordinated up to $900,000 in illicit payments to CFE officials, with the payments sent to shell companies in Mexico and a bank account in Germany and then passed on to CFE officials.

O'Shea was indicted on November 16, 2009, and faces conspiracy charges, violations of the FCPA, money laundering charges, as well as falsification of records. He is currently out on a $50,000 bond. On January 16, 2012, after a three-day jury trial, U.S. District Judge Lynn N. Hughes granted O'Shea's motion for acquittal on the substantive charges. The judge observed that the government's principal witness, Fernando Basurto, Jr., "knows almost nothing" about the alleged scheme and that the Basurtos failed to produce their financial and cell phone records, despite being cooperating witnesses. As a result, the court found that government could not connect O’Shea to an alleged bribe of a foreign official.
:
Anti-bribery (Domestic Concern), Conspiracy - Anti-Bribery
:
Destruction of Records, Money Laundering
:
Acquittal
:
Not stated.
:
0
:
Agent of Domestic Concern, Domestic Concern, Employee of Domestic Concern, Officer of Domestic Concern
:
General Manager
:
U.S.
:
Contract Procurement/Retention
:
81,000,000
:
Cash, Scholarship/Education, Wire/check
:
Customs Broker or Agent/Consultant, Shell entity
:
900,000
:
Mexico
:
Germany, Mexico
:
No