14664: SEC and American Rice in Haiti (fwd)

[Bob Corbett <corbetre@webster.edu>]

From: thor burnham <thorald_mb@hotmail.com>


American Rice settles with SEC over alleged bribes
Fri January 31, 2003 05:02 PM ET

http://www.reuters.com/newsArticle.jhtml?type=topNews&storyID=2150749

WASHINGTON, Jan 31 (Reuters) - American Rice Inc. ACNR.PK and three former
employees settled allegations they bribed Haitian customs officials in the
late 1990s to reduce import taxes on rice shipments, U.S. securities
regulators said on Friday.
The U.S. Securities and Exchange Commission issued an order finding
involvement by the defendants, who along with the Houston-based company
agreed to settle without admitting or denying any wrongdoing.

The settlement adds to a previous civil lawsuit the SEC's enforcement unit
brought against three former American Rice officials in late July, including
a former president, Douglas Murphy.

In that case the SEC also sued the former vice president, David Kay, and a
former consultant, Lawrence Theriot, who were accused of authorizing workers
to make a dozen payments totaling $500,000 in 1998 and 1999 in violation of
the Foreign Corrupt Practices Act.

The SEC alleged that Kay, with Murphy's knowledge, authorized the bribes and
false entry of those payments in the company's books and records while
Theriot monitored the payments and sought alternative schemes.

In the latest settlement, the SEC accused a former controller, Joseph
Schwartz, and former employees, Joel Malebranche and Allen Sturdivant, of
participating in the scheme to illegally reduce the company's import taxes
by about $1.5 million on rice shipments to Haiti.

American Rice did not have an immediate comment.

The SEC's case is pending an appeal in parallel criminal proceedings brought
by federal prosecutors but a federal court dismissed criminal indictments
against Murphy and Kay in April 2002.

An appeal by the Department of Justice of the court's decision is currently
pending

UPDATE 1-American Rice settles with SEC over alleged bribes
Fri January 31, 2003 06:36 PM ET
(Adds attempts to reach defendants, updates with Schwartz still employed at
American Rice)
WASHINGTON, Jan 31 (Reuters) - American Rice Inc. ACNR.PK , two former
employees and one current employee settled allegations they bribed Haitian
customs officials in the late 1990s to reduce import taxes on rice
shipments, U.S. securities regulators said on Friday.

The U.S. Securities and Exchange Commission issued an order finding
involvement by the defendants, who along with the Houston-based company
agreed to settle without admitting or denying any wrongdoing.

The settlement adds to a previous civil lawsuit the SEC's enforcement unit
brought against three former American Rice officials in late July, including
a former president, Douglas Murphy.

In that case the SEC also sued the former vice president, David Kay, and a
former consultant, Lawrence Theriot, who were accused of authorizing workers
to make a dozen payments totaling $500,000 in 1998 and 1999 in violation of
the Foreign Corrupt Practices Act.

The SEC alleged that Kay, with Murphy's knowledge, authorized the bribes and
false entry of those payments in the company's books and records while
Theriot monitored the payments and sought alternative schemes.

In the latest settlement, the SEC accused a former controller, Joseph
Schwartz, and former employees, Joel Malebranche and Allen Sturdivant, of
participating in the scheme to illegally reduce the company's import taxes
by about $1.5 million on rice shipments to Haiti.

Schwartz, a former controller for its Haiti operations, is currently
employed by American Rice, an SEC attorney said.

American Rice did not have an immediate comment. Schwartz did not
immediately return a telephone call seeking comment, and attempts to reach
Malebranche and Sturdivant were unsuccessful.

The SEC's case is pending an appeal in parallel criminal proceedings brought
by federal prosecutors but a federal court dismissed criminal indictments
against Murphy and Kay in April 2002.

An appeal by the Department of Justice of the court's decision is currently
pending.



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