January 16, 2019
Hawaiian Man Charged with Conspiracy To Bribe State and Foreign Officials
On January 16, 2019, Frank J. Lyon, Kailua, Hawaii, was charged by information in U.S. District Court, Honolulu, Hawaii, for conspiracy to make corrupt payments to officials of the Federated States of Micronesia (FSM) and State of Hawaii. The purpose of the payments was to enable Lyon’s engineering company to obtain, retain, and/or receive payments for contracts, one of which was funded by FAA Airport Improvement Program (AIP) grant funds.
The information alleges that between 2006 and 2016, Lyon made bribe payments of a least $200,000 to FSM officials in return for approximately $7.8 million in contract payments. Between 2011 and 2016, Lyon paid another $240,000 to a Hawaiian official to obtain a $2.5 million contract. The bribes included vehicles, gifts, and entertainment, and were falsely classified as business expenses.
DOT-OIG is conducting this investigation with the FBI.
Note: Indictments, informations, and criminal complaints are only accusations by the Government, and all defendants are presumed innocent until proven guilty.