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U.S. v. Eagle Bus Mfg., Inc.

 
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Eagle Bus - Eagle Bus Mfg., Inc.
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DOJ Civil
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October 2, 1991
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U.S. v. Eagle Bus Mfg., Inc.
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U.S. v. Eagle Bus Mfg., Inc., No. B-91-171 (S.D.Tex. 1991)
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In addition to the civil charges alleged against the company, five individuals were charged with criminal violations of the FCPA. The foreign agent pleaded guilty. The District Court dismissed two other individuals holding that bribe recipients could not be prosecuted for conspiring to violate the FCPA, which was affirmed by the Court of Appeals. See U.S. v. Blondek, Tull, Castle, and Lowry, 741 F. Supp. 116 (N.D. Tex. 1990), aff'd., 925 F.2d 831 (5th Cir. 1991). The two remaining company employees were acquitted after trial.
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Manufacturing-Other/Multi
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Canada
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1989; 1990
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President and Vice-President of a state-owned company.
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Beginning in or about July 1989 and continuing through February 1990, John Blondek and Vernon Tull, both former employees of Eagle Bus Manufacturing, Inc., allegedly participated in a bribery scheme to pay foreign officials of Saskatchewan $50,000 CAD in connection with the sale of 11 buses to be used by the province. According to the facts alleged in the indictment, Darrell Lowry and Donald Castle, the respective Vice-President and President of the Saskatchewan Transportation Company ("STC"), an instrumentality of the Canadian government, requested payment in the sum of approximately two percent of the purchase price to ensure Eagle's receipt of the contract. Thereafter, George Morton, Eagle's Canadian agent, caused a check for $52,000 CAD to be issued to his own Canadian corporation. As alleged, Morton then delivered $50,000 CAD in cash to Castle and, in an effort to conceal such payment and pursuant to Tull's instructions, prepared a letter on the letterhead of Eagle Ontario Bus Industries, Inc., the Canadian firm assisting Eagle in the sale, falsely stating that STC had been granted a "volume discount" amounting to US $43,940.

Without admitting or denying the allegations, Eagle consented to the entry of a Final Judgment that permanently enjoins it from violating the anti-bribery provisions of the FCPA, directly or indirectly.
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Anti-bribery (Domestic Concern)
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Injunction/Cease and desist
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Defendant consented to the entry of a Final Judgment that permanently enjoins it from violating the anti-bribery provisions of the FCPA, directly or indirectly.
:
Not stated.
:
0
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Domestic Concern
:
U.S.
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Contract Procurement/Retention
:
2,770,000
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Cash, Wire/check
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Sales Agent/Consultant
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50,000
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Canada
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Canada
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No