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Stanley Sends Big Check To KBR

Jack Stanley paid his former employer Kellogg, Brown & Root LLC $9.25 million last week as partial restitution for kickbacks he took when he ran the company.

He was sentenced on February 23 to 30 months in prison for conspiracy to violate the Foreign Corrupt Practices Act and commit mail and wire fraud.

When he pleaded guilty four years ago, he admitted taking kickbacks from contracts KBR signed with governments in Nigeria, Malaysia, Egypt, and Yemen. He was ordered to make a $10.8 million restitution payment for the kickbacks.

Judge Keith B. Ellison allowed Stanley to pay the remaining $1.55 million of the restitution in monthly installments of $1,000 after he’s released from prison.

Stanley, 69, won’t complete the deferred restitution payments; at the rate of $1,000 a month, that would take 129 years.

While he was KBR’s chairman and CEO, Stanley arranged $182 million in bribes to Nigerian officials for KBR and three international partners. They won contracts to build liquefied natural gas facilities on Bonny Island, Nigeria worth more than $6 billion.

Stanley hasn’t reported to prison yet. Judge Ellison recommended to the Bureau of Prisons that he serve his jail time at the Williamsburg Federal Correctional Institution in Salters, South Carolina (pictured above). Williamsburg is a medium security facility for men, with ‘an adjacent minimum security male camp,’ according to the Bureau of Prisons.

Stanley received a preliminary prison sentence of 84 months when he pleaded guilty in 2008. His final jail term was shortened to 30 months because of his cooperation with the DOJ and SEC. He helped them collect $1.65 billion from KBR and its partners and agents.

His cooperation is also the likely reason why the judge deferred part of his restitution payment.

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