Task Force KleptoCapture Announces Array of New Charges, Arrests, and Forfeiture Proceedings in Advance of Second Anniversary of Illegal Invasion of Ukraine
The owner of a Hawaii-based engineering and consulting company was sentenced to 30 months in prison yesterday for his involvement in an international bribery conspiracy, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Sean Kaul of the FBI’s Honolulu Field Office.
Frank James Lyon, 53, a U.S. citizen residing in Hawaii, was sentenced by U.S. District Judge Susan O. Mollway of the District of Hawaii. Lyon pleaded guilty on Jan. 22 to a one-count information filed in the District of Hawaii charging him with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) and to commit federal program fraud.
According to admissions made as part of his plea agreement, between 2006 and 2016, Lyon and his co-conspirators paid bribes to foreign officials in the Federated States of Micronesia (FSM) and to Hawaii state officials in exchange for those officials’ assisting Lyon’s company in obtaining and retaining contracts valued at more than $10 million. The bribes included, among other things, cash to FSM officials and Hawaii officials, and vehicles, gifts and entertainment for FSM officials.
In a related matter, Master Halbert, 44, a Micronesian citizen and government official, pleaded guilty on April 2, before Judge Mollway to one count of conspiracy to commit money laundering. He is scheduled to be sentenced on July 29, 2019.
Trial Attorney Katherine Raut of the Criminal Division’s Fraud Section is prosecuting the case. The Criminal Division’s Office of International Affairs and the U.S. Department of Transportation Office of Inspector General provided significant assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.