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U.S. v. John Blondek, Vernon R. Tull, Donald Castle, and Darrell W.T. Lowry

 
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Eagle Bus - Lowry, Darrell W.T.
:
DOJ Criminal
:
June 4, 1990
:
U.S. v. John Blondek, Vernon R. Tull, Donald Castle, and Darrell W.T. Lowry
:
U.S. v. John Blondek, Vernon R. Tull, Donald Castle, and Darrell W.T. Lowry, 741 F. Supp. 116 (N.D. Tex. 1990), aff'd., 925 F.2d 831 (5th Cir. 1991)
:
The District Court dismissed the charges alleged against defendant holding that bribe recipients could not be prosecuted for conspiring to violate the FCPA. The Court of Appeals for the Fifth Circuit later affirmed. 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)
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Manufacturing-Other/Multi
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Canada
:
1989; 1990
:
President and vice-president of a state-owned transportation 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.

The District Court dismissed the charges alleged against Lowry holding that bribe recipients could not be prosecuted for conspiring to violate the FCPA. The Court of Appeals for the Fifth Circuit later affirmed.
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Conspiracy - Anti-Bribery
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Dismissal
:
Not stated.
:
0
:
Government Affairs
:
Foreign
:
Contract Procurement/Retention
:
2,770,000
:
Cash, Wire/check
:
Sales Agent/Consultant
:
50,000
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Canada
:
Canada
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"Foreign Official:" In reviewing the legislative history of the FCPA, the District Court concluded (and the 5th Cir. affirmed) that Congress intended to exempt foreign officials (defendant, recipient of bribe) from prosecution under the FCPA for receiving bribes and therefore officials could not be charged with conspiracy to violate the Act. The Court cites the "overwhelming evidence of a Congressional intent to exempt foreign officials from prosecution for receiving bribes, especially since Congress knew it had the power to reach foreign officials, and yet declined to exercise that power."
:
No