U.S. ¥. Silicon Contractors, Inc., Diversified Group, Inc., Herbert D, Hughes, Ronald R. Richardson, Richard L. Noble and John Sherman ‘Criminal Action 85-251 (E.D, La., June 27, 1985) Editor's Note: Criminal charges against Silicon Contractors, Inc., were settled bby the payment of $150,000 and the entry of permanent injunctions against its oficers Jor their involvement in a plan to pay $132,000 10 Mexican officials in their positions ‘at the Comision Federal de Electricidad, a Mexican government agency. The intent was 10 induce the officials to use their influence to award a contract to Silicon for the ‘manufacture and installation of radiation and fire-stop penetration seals for a nuclear power plant in Laguna Verde, Mexico, Silicon, three of ts officers, a resident of England, and Diversified Group (which acquired the stock ownership of Silicon), were also named in a civit injunctive action prohibiting fusure violations of the bribery provisions of the Foreign Corrupt Prac- tices Act. All agreed 10 the entry of the injunctions against them, and District Judge Carr signed the final judgments against ail parsies except Sherman on July 11, 1985. The final judgment against Sherman was signed by Judge Carr in August of 1985. Below we reproduce the following documents related 10 the action: — Notice of Plea and Plea Agreement in the Criminal Acrion against Silicon Contractors, inc. — The Criminal Information (Exhibit A) — The Consent of Silicon to the Eniry of she Civil Injunction (with she Final Judgment) (Exhibit B) — The Consent of Hughes to the Entry of the Civil Injunction (with the Final Judgment) (Exhibit C) — The Consent of Richardson to the Entry of the Civil Injunction eith the Final Judgment) (Exhibit D) — The Givit Complaint for Permanent Injunctions Against Silicon, Diversified, Hughes, Richardson, Noble, and Sherman. IN THE UNITED STATES DISTRICT COURT ‘Criminal Action No, 85-251 FOR THE EASTERN DISTRICT OF LOUISIANA Violation: 15 U.S.C. $78dd-2 (@) (1) and) NOTICE OF PLEA AGREEMENT UNITED STATES OF AMERICA Flatt ‘AND PLEA AGREEMENT Pursuant to Rule 11 of the Federal Rules of Criminal Pro- cedure, notice is respectfully given to the Court tha te at- tomeye for the Government and the Attorneys for Silicon Contractors, Inc., Herbert D. Hughes and Ronald R. ‘Richardson, have engaged in discussions pursuant to sid rule and agree:1, Silicon Contractors, Inc. shall: (2) waive venue snd indictment and plead guilty in the United States District Court for the Eastern District of Louisiana to the one count of an Information, at tached hereto as Exhibit A," which charges a criminal violation of the Foreiga Corrupt Practices ‘Act of 1977 [15 U.S.C. §78dd-2(a) (1) and (3), and: (©) on the same day as the entry of the plea of gullty described in sub-paragraph “(a),"* shove, consent 10 the entry against i in the United States District Coort for the Eastern District of Louisiana ofa final jadg- ‘ment of permmeat injunction in the form etached hereto as Exhibit “B."” 2. Pursuant to the provisions of Rule 11(e}(1)() of the Federal Rules of Criminal Procedure, Silicon Contractors, Inc. wil pay 2 criminal fine in the emoust of ope hundred fifty thousand dollars ($150,000) for ssid violation, as aeged in Exhibit'“A,"" and soch amount shall be paid in fll within five days of the entry of the plea berein. 3._Herbert D, Hughes shall, oo tbe same day asthe ea- try of the plea of guilty described i paragraph ‘',” above, consent tothe entry against im, inthe United States District Court for the Eastern District of Louisiana, ofa final jadg- ‘ment of permanent injunction, the form of which consest and injunction are attached hereto as Exhibit “C." 4. Ronald R. Richardson shail, on the same day as the entry ofthe plea of guilty described in paragraph‘, above, content othe eotry against him, i the United Somes District ‘Cour for the Eastera District of Louisiana, ofa final judge rent of permanent injunction, the form of which consent ‘and injunction are attached hereto as Exhibit “D.” 5. Wthe Court accepts the plea of gulky described snd refered 10 in "4, above, and imposes the sentence described and referenced in paragraph "2," above, he United States agrecs that no further criminal charges will bbe brought against Silicon Contractors, Inc. or its preseut or pas subsidiaries or affiliates, as well a is past and pres- ent directors, employees, officers or agents, which charges ate reined to any offered of made directly oi directly, officials of the Comision Federal de Elocicidad C/CFE"), wn agency of the Republic of Mexico, in connec: tion with the award ofa contact forthe sale and installation ‘of radiation and fire-siop penewration seals at the CFE's Lagum Verde nuclear facility. 6. Itis agreed thet if the Court, pursuant to Rule 11(€)(4) ‘ofthe Federal Rules of Criminal Procedure, rejects any pat of this plea agreement or refuses to accept the guilty pica all partes to this plea agreement wil be relieved of any obli ‘ons pursuant to paragraphs ‘I"" through “'5,"" above. It js further agreed that if the Court reject this plea agreement, the Government may move to dismiss the charges inte In- formation without prejudice and none of the partis to this agreement shall have any objection to such a dismissal nor «any objection to the continvation of a Grand Jury investiga- tion. In such event, Silicon Contractors, Inc., HerberD. Hughes and Ronald R. Richardson hereby waive any claim ‘hased upon the expiration ofthe state of imitations for their activities prior to June 27, 1980, provided charges arising from such activities are brought on or before August 27, 1985. 7. This expressly understood and agreed that the provi sions of paragraph “S,"" above, in no way preclude the ‘United States from: (2) proceeding against Sticon Contractors, In., Herbert D. Hughes or Ronald R. Richardson for any offense defined in Title 26 and such Tide 28 offenses ax may be investigared by agents of the Internal Revenue ‘Service in connection with the enforcement of federal revenoe laws, iocluding but not limited to conspiracies 10 commit such Title 26 and Tide 18 offenses, and ‘conspiracies to defrand the Goverament by impeding, ‘impairing, obstrocting and defeating te Lawfil func- tion of the United States Treasury and the Internal ‘Revenue Service in the ascertainment, computation, ‘assessment or collection of revenue, whether or not arising out ofthe payments referred to in paragraph “5," oF (b) prosecuting for perjury, false statement or obstruc- ‘on of justice any person or entity in connection wit the investigation of the payments referred to in paragraph *5."* 8. Thisplea agreement coafirns the eatie agreement be- tween Silicon Contractors, Inc., Herbert D. Hoghes, Ronald R. Richardson and the United States with respect tothe aforesaid guilty plea of Silicon Coatractors, Inc, and no ‘ther promises, representations or inducements have been rade fo them or to their atiomeys with regard to such guilty plea, DATED this 27th day of June, 1985, PETER G. STRASSER /0/ ‘Assistant United Stares Attorney New Orleans, LouisianePETER B. CLARK (s/ Trial Anorney Fraud Section, Criminal Division U.S, Department of Iustice Washington, D.C. JOHN VOLZ ‘si United States Attorney SILICON CONTRACTORS, INC. By: Herbert D. Hughes /sf President Lary 8. Flax, Esquire /s! Flax and Rosenfield, P.C, 211 South Beverly Drive Beverly Hills, California 90212 Atiorey for Herbert D. Hughes Ronald R. Richardson /s! Frank De Salvo, Esquire is! 614 Tehoupitoulis Street ‘New Orleans, Louisiana 70130 ‘Automey for Ronald R. Richardson! CERTIFIED COPY OF RESOLUTIONS Authorization Re: Plea of > Silicon Contractors, Ine. ) ‘Upon motion duly made by Director Herbert D. Hughes, seconded by Director Ronald R. Richardson, and unanimous- ly carried by the affirmative vote of all the Directors pres: ‘ent, the following sesolutions were adopted: RESOLVED, thet this Corporation, expecting wo be named asa defendant in a criminal action brought by the United States of America in the United States District Court for the Eastern District of Louisiana, consents to a semleraeat of that action by the entry of a plea of guilty to an Infor- ‘mation in substantially the form reviewed by this Board of directors at this meeting; and RESOLVED FURTHER, chat Herbert D. Hughes, Presi- dent of this Corporation, be and hereby is, authorized to center a plea of guilty on behalf of this Corporation substan- tially in suck form as reviewed by this Board of Directors at this meeting CERTIFICATION 1, RR. RICHARDSON, hereby certify that am the duly lected Secretary of Silicon Contractors, In.; thatthe Zorgo- ing is full, rue and correct copy of resolutions duly adopted by the Board of Directors of said Corporation, at a meeting thereof duly held atthe office of the jon in New Orleans, Louisiana, om the 27th day of June, 1985; that the said resolutions have not been rescinded or revoked; and that the foregoing resolusions are not contrary to any provisions in the Articles of Incorporation or By-Laws of Silicon Con- ‘actors, Ine, IN WITNESS WHEREOF, I have herensto signed my ‘name as Secretary and affixed the Seal of said Corporation oon this 27th day of June, 1985. be EXHIBIT A IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF LOUISIANA ‘UNITED STATES OF AMERICA Plainuif, SILICON CONTRACTORS, INC. Defendant. Criminal Action No, 85-251 ‘Violation: 15 U.S.C. §78dd-2 (a) (1) and (3) INFORMATION 1k Avall times relevant herein: (a) _ the defendant, SILICON CONTRACTORS, INC. (“SILICON CONTRACTORS"), formerly known as Tech- Sil, Inc., was a domestic concern as that term is defined in Section’ 104(@) (1) of the Foreign Corrupt Practices [Act] of 1977 [15 U.S.C. $786d-2(€) (1). (the “Act”, to wit ‘a corporation organized and existing under the laws of the Suate of Texas and engaged in te manufacture, sale and in- stallation of radiation and fire-stop penetration seals for use in nuclear power plams. () The Comision Federal de Electricidad ("CFE")