Albert Stanley, a former KBR Inc. chief executive received 2 1/2 years in prison along with three years of probation and a $1,000 a month in restitution fees after release for bribing Nigerian government officials. The bribe was in exchange for $6 billion dollars in engineering and construction contracts.
Stanley pleaded guilty to the charges and spoke to U.S. District Judge Keith Ellison in court saying, “alcoholism played a role in compromising the traditional American values of hard work, honesty and integrity that he brought to his professional life.”
Based on the two-dozen people who spoke out in favor of Stanley’s commitment to volunteer work, Stanley’s involvement in Alcoholics Anonymous and mentoring program, Stanley’s attorney asked the judge to suspend a prison sentence.
Stanley’s sentence is already lighter than his plea agreement had outlined, A federal presentencing report suggested punishment of 3 1/2 years and he faced the possibility of seven years in prison for violating the Foreign Corrupt Practices Act. Under the act it is unlawful to bribe foreign government officials or company executives to obtain or retain business or to secure an advantage to getting the business. Stanley did work with the prosecution to help recover $1.7 Billion in fines and restitution. However, the judge was not persuaded by Stanley’s community service or participation in helping recover billions.
They settled on 2 ½ years. The court stating, “The court does take note of and salute the strides Mr. Stanley has made both to put things right in Nigeria and to redeem his own life, but the misconduct was serious, ongoing and deeply hurtful.”
KBR, a worldwide engineering and construction services firm, was split off as a separate public company from Halliburton in 2007. It was formerly known as Kellogg, Brown & Root.
He also pleaded guilty to a separate count of conspiring to defraud KBR and other companies. Stanley improperly recieved kickbacks of $10.8 million from a consultant hired by KBR. Stanley has already repaid $9.25 million of that and the restitution ordered and intends to cover the remaining $1.55 million.
In December 2010, Nigeria’s anti-corruption agency charged current and former KBR and Halliburton executives in the bribery scheme. But the charges were dropped a few weeks later after Halliburton agreed to pay a $35 million settlement.
Should these companies be able to pay off their crimes? Do you think that Stanley’s punishment is severe enough?