Parsippany, NJ – Former Saybolt, Inc. President and CEO David H. Mead received a four-month prison sentence in 1998 following a conviction for bribery related to securing business advantages in Panama. The case, which unfolded amidst an investigation into alleged data falsification at Saybolt’s Massachusetts laboratory, revealed a scheme to bribe a Panamanian government official with $50,000 in 1995.
Prosecutors detailed how Mead, along with Frerik Pluimers, then president of Saybolt North America and chairman of Saybolt, Inc., conspired to offer the bribe to gain concessions from the Panamanian government. These concessions included expedited tax benefits and a strategically valuable business location near the Panama Canal – crucial for Saybolt International, B.V., the parent company providing worldwide commodity testing services. The alleged payoff was intended to smooth the path for Saybolt’s expansion into the Panamanian market.
The investigation gained momentum after irregularities were discovered at Saybolt’s Wolburn, Massachusetts facility, prompting a broader review of the company’s international dealings. Evidence presented at trial demonstrated that Mead and Pluimers knowingly participated in the bribery plot, utilizing funds to influence a foreign official. The prosecution argued that Saybolt knowingly circumvented fair business practices to gain an unfair competitive edge.
Legal Ramifications
Mead was convicted on all counts presented by the prosecution on October 16, 1998. He was sentenced on March 1, 1998, to four months of incarceration, followed by four months of home detention and a 36-month probation period. He was also ordered to pay a $20,000 federal fine. The charges stemmed from violations of several federal statutes, including the Foreign Corrupt Practices Act (15 U.S.C. 78), which prohibits U.S. companies and citizens from bribing foreign officials. Additionally, Mead was found guilty of Conspiracy (18 U.S.C. 371), Aiding and Abetting (18 U.S.C. 2), and a Travel Act violation (18 U.S.C. 1952) for using interstate commerce to facilitate the illegal activity.
Fugitive Status
While Mead faced justice, his co-defendant, Frerik Pluimers, remains at large. An INTERPOL Red Notice has been issued for Pluimers’ arrest, signaling an international effort to bring him to face the charges. His continued evasion of authorities casts a long shadow over the case and raises questions about the full extent of the bribery scheme. The Department of Justice has not commented on ongoing efforts to locate and apprehend Pluimers.
Key Facts
- Defendant: David H. Mead & Frerik Pluimers
- Company: Saybolt, Inc. (and related entities)
- Location: Parsippany, New Jersey; Panama
- Year of Bribery: 1995
- Bribe Amount: $50,000
- Statutes Violated: 18 U.S.C. 371, 15 U.S.C. 78, 18 U.S.C. 1952, 18 U.S.C. 2
- Mead’s Sentence: 4 months incarceration, 4 months home detention, 36 months probation, $20,000 fine
- Pluimers Status: Fugitive – INTERPOL Red Notice issued
This case serves as a stark reminder of the potential for corporate corruption and the far-reaching consequences of violating anti-bribery laws. The GrimyTimes will continue to follow developments in this case, particularly regarding the apprehension of Frerik Pluimers.
Source: EPA ECHO Enforcement Case Database
