Chodan’s notebooks laid out the bribery plot, and pointed to
the top of KBR. In June 2004 Halliburton fired Stanley.
The next month, at the Justice Department, Clark
plopped the Bonny file on the desk of a new hire in the
fraud section, William Stuckwisch. “Hey, do you want to
do this case?” he asked. A self-effacing former counsel at
O’Melveny & Myers, Stuckwisch had been hired to do
securities work, but he knew about as much about corruption as anyone else. He was part of a new generation to take
the FCPA baton, as Clark and Urofsky left for Cadwalader,
Wickersham & Taft.
For four years, with less than extraordinary help from the
companies, Stuckwisch did the hard work of following the
money trail in the Bonny Island case. He filed mutual legal
assistance requests throughout Europe. He moved the case
from witness to witness, and defendant to defendant.
The result was a series of guilty pleas by three individuals,
starting with Stanley in 2008; a corporate guilty plea in 2009
by KBR (which by then had been spun off); and deferred
prosecution agreements with the other three joint venture
partners, ending with JGC in April 2011. (Notwithstanding
the chatter in the European press, former Halliburton chief
Dick Cheney was never regarded by prosecutors to be part
of the case.) At press time the second “cultural adviser” had
reached no agreement with prosecutors, and the individuals
who pled guilty awaited sentencing.
“Bill deserves all the credit for not letting the trail go
cold,” says Justice Department corruption chief Charles
Duross. “From start to finish, this was the best corruption
case I’ve ever seen,” says Technip counsel Robert Luskin of
Patton Boggs. “It’s almost completely the product of Bill’s
diligence, intelligence, and fortitude.”
From a lucky break in a French bribery investigation in 2002, the Bonny Island case was picked up by U.S. prosecutors in 2004.
It ultimately resulted in three guilty pleas by individuals, one corporate guilty plea, and three deferred prosecution agreements.
$1.66 BILLION WORTH OF PLEAS
Former Kellogg Brown & Root chief Albert
“Jack” Stanley pleads guilty on two counts
of conspiracy, to violate the Foreign Corrupt
Practices Act and to commit wire fraud.
Up to seven years,
to be reduced for
Kellogg Brown & Root LLC pleads guilty
to conspiracy and bribery under the FCPA.
Former parent Halliburton Company settles
Securities and Exchange Commission claims
of falsifying books and records.
$579 million in fines
($559 million paid
Technip S.A. signs a deferred prosecution
agreement with the Department of Justice
on FCPA charges of conspiracy and bribery,
and settles related civil claims with the SEC.
$338 million in fines
Rosen & Katz
Snamprogetti Netherlands B.V. signs a
deferred prosecution agreement on charges
of conspiracy and aiding and abetting under
the FCPA, and settles related civil charges
with the SEC. Former parent ENI SpA
settles SEC claims of falsifying its books
$365 million in fines
(ENI jointly liable for
Former Kellogg salesman Wojciech Chodan
pleads guilty on two counts of conspiracy, to
violate the FCPA and to commit wire fraud.
$726,885 in forfeiture
Up to five years,
to be reduced for
Kobre & Kim
Solicitor Jeffrey Tesler—or “Cultural Adviser
A”—pleads guilty to conspiracy and bribery
under the FCPA.
Up to ten years,
to be reduced for
JGC Corporation signs a deferred prosecution agreement on charges of conspiracy and
aiding and abetting under the FCPA.
$218.8 million in fines