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U.S. v. Richard G. Pitchford

 
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CAAEF -- Pitchford, Richard G.
:
DOJ Criminal
:
September 3, 2002
:
U.S. v. Richard G. Pitchford
:
U.S. v. Richard G. Pitchford, No. 02-CR-00365 (D.D.C. 2002)
:
The defendant was charged with both accepting kickbacks on his own behalf and paying bribes to a British official by sharing those kickbacks.
:
Manufacturing-Other/Multi
:
Turkmenistan
:
1997; 1998
:
Official of the Department of Trade and Industry of the United Kingdom
:
Mr. Pitchford was Vice President and Country Manager for Turkmenistan of the Central Asia America Enterprise Fund (CAAEF), a corporation wholly funded by U.S. Congressional appropriation, part of whose mandate was to support the development of the private sector in Central Asia.

He embezzled money from CAAEF projects in several instances, including a project to establish and equip an edible oil manufacturing facility in Ashkhabad, Turkmenistan.

In that instance, Mr. Pitchford worked with a British official, who passed inside information from Mr. Pitchford to a British company, which paid $200,000 in kickbacks to the two of them. Mr. Pitchford pleaded guilty to FCPA violations in connection with this contract, and to charges under the Federal Program Fraud Statute in connection with this and other contracts.
:
Anti-bribery (Domestic Concern)
:
Plea
:
Pitchford was sentenced to pay $400,000 in restitution, and to serve 12 months and 1 day of imprisonment, followed by 3 years of supervised release. Pitchford agreed not to contest the administrative forfeiture of funds from two bank accounts and a yacht (in which Pitchford disclaimed ever having any interest).
:
400,000
:
12
:
From the public record, it appears that the Guidelines offense level for Pitchford was 15, based upon an aggregate amount of kickbacks and bribes of $600,000 and full acceptance of responsibility. This results in a Guidelines range of 18-24 months and a fine $4,000 - $40,000. The government, however, filed a motion for a departure, presumably based upon substantial assistance in the investigation, and the Court accordingly imposed a shorter sentence of imprisonment, albeit with substantial restitution and forfeiture elements.
:
Domestic Concern
:
Other Senior Officer
:
U.S.
:
Contract Procurement/Retention
:
1,500,000
:
Wire/check
:
Shell entity
:
200,000
:
Switzerland, United Kingdom
:
Defendant arranged for the foreign official to be paid for helping arrange a bid based on inside information, which action was related to official's job, but the improper advantage was not for the defendant but rather for a foreign company that was caused to bid for the project by the foreign official himself. It appears from the pleadings that the benefit to the foreign company was incidental to the scheme, whose purpose was obtaining kickbacks for the defendant (and the foreign official).
:
No
:
No