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United States v. Richard K. Halford

 
:
OSI -- Halford, Richard K.
:
DOJ Criminal
:
August 3, 2001
:
United States v. Richard K. Halford
:
U.S. v. Richard K. Halford, 4:01-cr-00221 (W.D. Mo. 2001)
:
Infrastructure-Other/Multi
:
Costa Rica
:
1997; 1998; 1999; 2000
:
Costa Rican politicians, party officials and candidates for political office.
:
OSI Proyectos was the Costa Rican subsidiary of Owl Securities and Investment Ltd. ("OSI"), a domestic concern which had its principal place of business in Kansas City, Missouri. OSI Proyectos was planning development of port facilities, which would include an international airport, resort, marina, residential estates, quarry, salvage operations and dry canal in Costa Rica. Robert Richard King was a large shareholder of OSI and Pablo Barquero Hernandez, a Costa Rican citizen, was OSI's local representative in Costa Rica. Both were indicted on seven counts of FCPA violations. The indictment alleges that King was responsible for soliciting investors in the United States for the Costa Rican Project and that Barquero was to be the Costa Rican intermediary for a bribe payment. Barquero remains a fugitive and there is a warrant for his arrest. In June 2002, following a one-week trial, King was convicted of conspiracy and four counts of violations of the FCPA. In 1998 the ruling Costa Rican political party signed a letter of intent to allow OSI to move forward with developing the pier and resort. Before it formally granted permission, though, Hernandez indicated via fax that the foreign officials required a final "closing cost" or "toll" payment of $1 million. This amount eventually increased to $1.5 million, in part also to bribe opposition party officials. The opposition party was expected to take control of the government during that year's elections.

Richard K. Halford was a stockholder and chief financial officer of OSI who pled guilty to one count of conspiracy to violate the FCPA. Halford communicated with the Costa Rican agent, obtained a list of officials and others who had been paid by OSI Proyectos, and proposed creating a new company and opening a new bank account in Panama or the United States through which payments to the Costa Rican officials could be made without being traced back to OSI or OSI Proyectos.
:
Conspiracy - Anti-Bribery
:
Tax
:
Plea, Probation
:
This sanction consisted of: 5 years probation, no fine, and 1,000 hours of community service (to be spent lecturing on the evils of financial fraud).
:
Not stated.
:
0
:
Pursuant to the Guidelines, Halford's offense level was 16 based upon an intended bribe of $1,500,000 and credit for acceptance of responsibility. This resulted in a Guidelines range of 21-27 months and a fine of $5,000 - $50,000. The government, however, filed a motion for a downward departure to recognize Halford's substantial assistance in the investigation, and the Court sentenced him to probation and community service.
:
Agent of Domestic Concern, Domestic Concern, Employee of Domestic Concern, Officer of Domestic Concern
:
CFO
:
U.S.
:
Contract Procurement/Retention
:
Not stated.
:
Not stated.
:
No
:
No