Wednesday, September 3, 2008

Jack Stanley Pleads Guilty to Bribery

Former KBR Chairman and CEO Albert "Jack" Stanley, a close friend of Vice President Dick Cheney, pleaded guilty today in Houston to masterminding a $180 million slush fund to bribe Nigerian officials to get natural gas contracts worth $6 billion.

Under a plea agreement, Stanley, 65, will be sentenced to seven years in prison and ordered to pay $10 million restitution, roughly what he said he received in bribes. The Justice Department said it is the longest sentence ever in a case involving the Foreign Corruption Protection Act. No sentencing date was set.

Also today, the Securities and Exchange Commission charged Stanley with violating the anti-bribery provisions of the FCPA and related provisions of securities laws, the Justice Department said.

Here's the press release outlining the case.

KBR, a global engineering and construction firm formerly known as Kellogg, Brown & Root, is a subsidiary of Halliburton, which Cheney headed before becoming vice president. He has not been implicated in the bribery scheme.

More background on the case here and here.

Source: Michael Winter USA Today

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