Ex-CEO Pleads Guilty in Plot to Sell Ashland Oil Secrets
Orin Atkins, the former chairman and chief executive of Ashland Oil Inc., pleaded guilty Thursday to charges that he tried to sell confidential company documents to an Iranian oil company involved in a dispute with Ashland.
In announcing the plea, federal prosecutors said a seven-count indictment was brought against an attorney whose firm once worked for Ashland, for his alleged role in the scheme in which Atkins pleaded guilty.
Atkins, 65, of North Palm Beach, Fla., pleaded guilty in U.S. District Court to conspiracy and wire fraud. Could face a maximum of 10 years in prison and a $500,000 fine when he is sentenced Nov. 16.
Atkins was Ashland’s chairman and chief executive from 1974 until 1981. He was a consultant to Ashland, earning $425,000 a year, from 1981 to 1984.
U.S. Atty. Benito Romano said Atkins and the lawyer, Charles D. Barnett, were involved in a secret scheme to defraud Ashland by attempting to sell confidential papers to National Iranian Oil Co.
The documents dealt with the 1979 sale of $283 million in crude oil from the Iranian company to Ashland Overseas Trading Ltd., a Ashland subsidiary in Bermuda. Court papers said Ashland never paid for the oil.
In 1982, while he was a paid consultant, Atkins received about 260 privileged documents about the oil sale through an unidentified Ashland employee, Romano said.
According to the indictment against Barnett, Atkins and Barnett made repeated attempts, from 1982 until 1988, to sell the documents and Atkins’ consulting services to the Iranian company. They had planned to use a Swiss bank account to receive their payment, it said.
As compensation, Atkins and Barnett asked for 25% of what the Iranian company recovered from Ashland, the indictment alleged.
In court Thursday, Atkins said the deal was never final, although representatives of the Iranian company were allowed to see the documents in 1985.
After seeing the papers, National Iranian Oil Co. sued Ashland and Ashland Overseas for payment on the oil. Those suits, filed in Mississippi and Bermuda, were settled last week when Ashland agreed to pay $325 million, said Assistant U.S. Atty. Herve Gouraige.
Neither Ashland nor National Iranian Oil Co. was charged with any wrongdoing. Romano praised Ashland for cooperating in the investigation.
Conspiracy, Fraud Charged
Barnett, 38, of Palm Beach, Fla., was charged with conspiracy and six counts of wire fraud. If convicted, he faces five years in prison and a $250,000 fine on each count.
Barnett, who is not in custody, was scheduled to be arraigned Sept. 21.
