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SEC v. Douglas A. Murphy, David G. Kay and Lawrence H. Theriot

 
:
ARI - Theriot, Lawrence
:
SEC Civil
:
July 30, 2002
:
SEC v. Douglas A. Murphy, David G. Kay and Lawrence H. Theriot
:
SEC v. Douglas A. Murphy, David G. Kay and Lawrence H. Theriot, No. H-02-2908 (S.D. Tex. 2002)
:
Agriculture-Food
:
Haiti
:
1998; 1999
:
Undisclosed Haitian customs and tax officials.
:
Theriot consented to entry of the Final Judgment without admitting or denying the allegations of the Commission's complaint.

Between January 1998 and October 1999, David G. Kay, a former vice president of American Rice, Inc. ("ARI"), allegedly directed an ARI employee to prepare false shipping records that underreported the tonnage of rice on relevant vessels to Haiti. Haitian customs officials allegedly used these false records to clear these vessels through customs at a reduced customs tax. In exchange, Kay purportedly directed American Rice employees stationed in Haiti to pay cash bribes to certain customs officials. To hide these payments, Kay allegedly directed ARI's controller in Haiti to improperly record the bribery payments as routine costs of sales. Over this time period, ARI allegedly made at least 12 bribery payments totaling over $500,000 in exchange for avoiding approximately $1.5 million in Haitian import taxes. Douglas A. Murphy, ARI's former president, was purportedly aware of the bribery scheme, but took no action to stop the payments. The reduced import tax allegedly allowed ARI to retain it's competitive price advantage in the face of rice smugglers, who paid no import taxes, and officials who cut similar deals with other competitors. Lawrence H. Theriot, ARI's former Caribbean operations consultant, allegedly provided substantial assistance to Kay and Murphy by periodically reporting on the existing bribery arrangements, exploring alternative schemes and assessing each of the participants.
:
Aiding and abetting anti-bribery
:
Civil penalty, Civil Settlement, Injunction/Cease and desist
:
Permanent injunction from violating the FCPA; Civil penalty of $11,000 plus post-judgment interest of 2.71%.
:
11,298
:
0
:
Agent of Issuer, Aider/abettor
:
Agent/Intermediary
:
U.S.
:
Tax
:
1,500,000
:
Wire/check
:
Customs Broker or Agent/Consultant
:
500,000
:
Haiti
:
Haiti
:
No