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U.S. v. Robert Richard King and Pablo Barquero Hernandez

 
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OSI -- King, Robert Richard
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DOJ Criminal
:
August 3, 2001
:
U.S. v. Robert Richard King and Pablo Barquero Hernandez
:
U.S. v. Robert Richard King and Pablo Barquero Hernandez, No. 01-cr-190 (W.D. Mo. 2001)
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This matter represents an instance in which the government brought charges based on an agreement to offer a bribe without evidence of an actual offer to a public official. Further, the intended recipients of the bribe offer were to be the ruling and opposition political parties rather than specific officials.
:
Infrastructure-Other/Multi
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Costa Rica
:
1995; 1996; 1997; 1998; 1999; 2000
:
Costa Rican politicians, party officials and candidates for political office.
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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, Barquero 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.

Two other individuals pleaded guilty to FCPA conspiracy in connection with this matter.
:
Anti-bribery (Domestic Concern), Conspiracy - Anti-Bribery
:
Travel Act
:
Conviction
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King was sentenced to 30 months in prison and was fined $60,000.
:
60,000
:
0
:
Pursuant to the Guidelines, King's offense level was 19 based upon an intended bribe of $1,500,000. This resulted in a Guidelines range of 30-37 months and a fine of $6,000 - $60,000. The Court sentenced him to the minimum term of imprisonment and the maximum fine.
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Domestic Concern, Stockholder of Domestic Concern
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Shareholder
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U.S.
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License/Permit
:
Not stated.
:
Not stated.
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"In furtherance:" The defendants were convicted on acts in futherance of a foreign bribe by attempting to raise money to fund bribes to foreign officials.

"Foreign political party:" The intended recipients of the unlawful payments were to be the ruling and opposition political parties who were expected to distribute the funds to their respective officials.
:
No
:
No