Deutsche Lufthansa AG (ETR:LHA): U.S slaps bribery charge on Ex-Bizjet executives

Boston, MA 04/07/2013 (wallstreetpr) – A suit has been filed in the U.S against two former executives of Lufthansa Technik’s BizJet International Sales and Support. The charges are that they were part of a scheme in which Latin American government officials were bribed. Two other people have pleaded guilty of the charge. According to the charges that have been filed in a Tulsa, Oklahoma court in January 2012, BizJet’s former president and chief executive officer Bernd Kowalewski bribed Brazilian, Mexican and Panamanian officials. At that point of time he along with Jald Jensen, a sales manager with BizJet had bribed the officials to acquire contracts for the company. According to the statement, both Jensen and Kowalewski are believed to be outside America.

Large-scale bribery

Bizjet’s former vice president of sales and marketing, Peter DuBois and the company’s former vice president of finance Neal Uhl were the two executives who pleaded guilty to the charge of conspiracy of violation of the Foreign Corrupt Practices Act. According the statement, as of yesterday, their pleas remained unsealed. In the statement, Mythili Raman, the acting Assistant Attorney General said that the four former executives of the company had authorized and been the reason for thousands of dollars being paid either directly or indirectly to high-ranking military officials in several foreign companies.

Reduced charges

BizJet is the American unit of Deutsche Lufthansa (ETR:LHA) (Current: $14.14, Down by 5.23%) which is the second largest air carrier in Europe. In March, the government announced a postponed prosecution pact with BizJet as well a penalty of $11.8 million towards the resolution of FCPA-related charges. The FCPA prohibits bribery of any foreign government officials for gaining commercial advantage. Since

DuBois and Uhl had been co-operative with the investigation that was being carried-out by the government; the Tulsa U.S. District Judge Gregory K. Frizzell reduced their sentences to eight months and probation.

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Published by Brendan Byrne

While studying economics, Brendan found himself comfortably falling down the rabbit hole of restaurant work, ultimately opening a consulting business and working as a private wine buyer. On a whim, he moved to China, and in his first week following a triumphant pub quiz victory, he found himself bleeding on the floor based on his arrogance. The same man who put him there offered him a job lecturing for the University of Wales in various sister universities throughout the Middle Kingdom. While primarily lecturing in descriptive and comparative statistics, Brendan simultaneously earned an Msc in Banking and International Finance from the University of Wales-Bangor. He's presently doing something he hates, respecting French people. Well, two, his wife and her mother in the lovely town of Antigua, Guatemala. You may contact Brendan via his email (brendanbyrne@wallstreetpr.com) or his Google+ page (https://plus.google.com/u/0/116608759701551457422).

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