Settlements

ST-45
American Rice, Inc. / Lawrence Theriot
American Rice, Inc.
United States
Securities and Exchange Commission
Haiti
2004
12/30
Unknown
Individual
Civil
Consent to Permanent Injunction
Civil Penalty
$11,000.00
$0
$0
$11,000
$0
Art.16, Art.27
Art. 1
Aiding and abetting co-defendants' bribery of foreign officials
No admission or denial of allegations
No (Customs)
According to the US Securities and Exchange Commission's Litigation Release, on December 30, 2004, the US District Court for the Southern District of Texas entered a Final Judgment enjoining Mr. Theriot from future FCPA violations and ordered him to pay a $11,000 civil penalty. Mr. Theriot, a consultant to American Rice, Inc. consented to the Final Judgment without admitting or denying the SEC's allegations. The SEC had alleged that Mr. Theriot aided and abetted a bribery scheme in violation of the FCPA, namely that from 1998 to 1999, an American Rice vice president authorized and the company made at least 12 separate bribery payments to Haitian customs officials, totalling approximately $500,000. In exchange, Haitian customs officials permitted American Rice to illegally avoid approximately $1.5 million in Haitian import taxes. (Source: US Securities and Exchange Commission, Litigation Release No. 19026 / January 7, 2005, SEC v. Douglas A. Murphy, David G. Kay and Lawrence H. Theriot, Civil Action No. H-02-2908 (S.D. Texas), "Lawrence H. Theriot Consents to Permanent Inunction and Payment of Civil Penalty for Aiding and Abetting Violations of the Foreign Corrupt Practices Act"). According to the June 2011 US Report to the OECD on the Enforcement of the Anti-Bribery Convention, "The civil matter against [co-defendants] Kay and Murphy were suspended until sentencing, and the SEC has not yet moved to reopen the case." The same report noted that Kay and Murphy were convicted on October 6, 2004. (Source: US Report to the Organisation for Economic Co-operation and Development, "Steps taken to implement and enforce the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions," Information as of May 31, 2011, American Rice, Inc. Case, at 126-127.)