of himself, which was filed with the Internal Revenue Service, wherein he falsely answered "No" to the following question: “Did you, at any time during the taxable year, have any interest in or signature or other authority over a bank, securities, or other financial account in a foreign country (except in a U.S. military banking facility operated by a U.S. financial institution) ?", whereas, as he then and there well knew he did, in fact, have such account at Castle Bank & Trust Co., in Nassau, Bahamas.

In violation of section 1001 of Title 18, United States Code.

COUNT II

The Grand Jury further charges: That on or about May 20, 1975, Herbert Michael Wolstencroft did willfully and knowingly aid and abet the defendant, Jack Payner, in committing the aforesaid offense in the Northern District of Ohio against the United States, recited in Count I, by executing and signing a false document (Affidavit), which was transmitted to the Internal Revenue Service in Washington, D.C., and by confirming the contents and authenticity of said false document to an agent of the Internal Revenue Service on or about August 12, 1975.

In violation of Section 2 of Title 18, United States Code, and Section 1001, Title 18, United States Code.

A true bill.

-Foreman.
-U.S. Attorney.

Received this Indictment this date September 2, 1976 in open Court.

IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF OKLAHOMA

No. (T. 18, U.S.C. 371), (T. 26, U.S.C. 7206(1)), (T. 26, U.S.C. 7206(2)) UNITED STATES OF AMERICA, PLAINTIFF,

v.

PHILLIPS PETROLEUM COMPANY, STANLEY LEARNED, WILLIAM F. MARTIN, AND WILLIAM W. KEELER, DEFENDANTS.

INDICTMENT

COUNT I

The Grand Jury charges: That from on or about January 1, 1962, the exact date being unknown to the grand jury, and continuously thereafter up to October 5, 1973, in the Northern District of Oklahoma and divers other places, including Washington, D.C. Geneva Switzerland, London, England and Panama City, Panama, Phillips Petroleum Company, Stanley Learned, William W. Keeler and William F. Martin, defendants herein, together with Phillips Petroleum International Corporation, an unindicted co-conspirator, and other persons, known and unknown to the grand jury, did unlawfully, knowingly and willfully conspire, combine, confederate and agree together and with each other to defraud the United States by impeding, impairing, obstructing and defeating the lawful functions of the Internal Revenue Service of the Treasury Department of the United States in the ascertainment, computation, assessment and collection of the revenue, to wit: The corporate income taxes of Phillips Petroleum Company, hereinafter referred to as the Company.

The grand jury further charges that during the continuance of the conspiracy: At times material to this charge:

1. Phillips Petroleum Company (the Company) was a Delaware corporation engaged in the production, distribution and sale of oil and gas. The Company's headquarters were in Bartlesville, Oklahoma.

(Signed) ALLEN E. BARROW, Chief United States District Judge.

2. Phillips Petroleum International Corporation was a Panamanian corporation formed as a wholly owned subsidiary of the Company in 1959. From 1963 to 1971, the Company owned, directly, only 50 percent of the PPIC stock. Thereafter, the Company again owned 100 percent of the stock.

3. Stanley Learned was the President of the Company from 1962 to 1963, President and Chief Executive Officer from 1964 to 1967, and a member of the Board of Directors from 1962 to 1970.

4. William Wayne Keeler was the President and Chief Executive Officer of the Company from 1967 to 1968, Board Chairman and Chief Executive Officer from 1969 to 1972, and a member of the Board of Directors from 1962 to 1973.

5. William Frederick Martin was the President of the Company from 1971 to 1973, President and Chief Executive Officer from 1973 to 1974, and a member of the Board of Directors from 1964 to 1973.

6. John Marvin Houchin was the President of the Company from 1969 to 1970, Deputy Chief Executive Officer and Deputy Chairman of the Board from 1971 to 1972, and a member of the Board of Directors from 1962 to 1974.

7. Paul J. Parker was Vice President of the International Department of the Company from 1959 until 1963, Vice President of the Company until his retirement from the Company in 1964, and thereafter a consultant to the Company.

8. Triton Shipping Company was an agent for a foreign shipping company, headquartered in New York City, New York.

9. Cochin Refineries, Ltd., incorporated in 1963, was an Indian corporation formed to construct and operate a petroleum refinery near Cochin, India.

MEANS AND METHODS

The Grand Jury further charges: That the said unlawful combination, conspiracy, confederation and agreement was to be accomplished by means and methods in the manner following:

1. The Company, together with and through Phillips Petroleum International Corporation, would and did enter into agreements with Procon, Incorporated, and others, whereby $2,000,000 would be generated in a concealed and confidential manner and would not be properly recorded on the Company's books of financial account, nor recorded as income on its income tax returns.

2. The Company would and did enter into an agreement and arrangements with Triton Shipping Company, whereby income to the Company in excess of $600,000 would be generated in a concealed and confidential manner and would not be properly recorded on the Company's books of financial account, nor recorded as income on its income tax returns.

3. The Company would and did enter into agreements with Procofrance, S. A., and others, whereby deductions totaling $75,000 would be improperly recorded on the Company's books of financial account and improperly claimed on its income tax return.

4. Funds would be concealed in Swiss bank accounts, and other places.

5. Disbursements of moneys of the Company would be made to certain foreign associates of the Company and not be properly recorded on the Company's books of financial account.

6. Funds from Swiss accounts would be withdrawn from the accounts in cash from time to time and returned to the Company headquarters in Bartlesville, Oklahoma, where said funds would be held in a confidential cash fund and used to make concealed payments which would not be properly recorded on the Company's books of financial account.

7. The Company would cause certain fees of the Company to be transmitted to Phillips Petroleum International Corporation, where it would be available for confidential disbursements to certain foreign entities and other uses of the Company and would not be properly recorded on the Company's books of financial account.

8. The Company would do various other acts, including but not limited to the use of international couriers, code names, misleading entries, and false invoices and billings, which would conceal from the Internal Revenue Service the true nature of the Company's income and expenses and prevent said IRS from making a complete and accurate audit of the Company's books and records for income tax purposes.

OVERT ACTS

The Grand Jury further charges: That in furtherance of the conspiracy and for the purpose of carrying into effect its objects, designs and purposes, the following overt acts, among others, were committed:

1. On or about July 3, 1962, William F. Martin and another Company official met with a foreign associate of the Company in Zurich, Switzerland.

2. On or about June 8, 1963, Stanley Learned met with a Procon, Incorporated, official.

3. Sometime after June 8, 1963 and before November 19, 1963, Stanley Learned met with Paul J. Parker.

4. Sometime after June 8, 1963 and before November 19, 1963, William W. Keeler met with Paul J. Parker.

5. On or about October 3, 1963, Stanley Learned met with a Procon, Incorporated, official.

6. On or about November 19, 1963, at Stanley Learned's instructions, Paul J. Parker met with a Swiss banker and another individual in Geneva, Switzerland. 7. From the latter part of 1964 to and including July 13, 1973, John M. Houchin maintained custody of a confidential cash fund, pursuant to instructions of Stanley Learned.

8. On or about August 16, 1968, William F. Martin approved a payment of $20,000 to Procofrance, S. A.

9. From the latter part of 1968 to and including July 13, 1973, William F. Martin monitored a Swiss bank account and the disbursements therefrom.

10. From the latter part of 1968 to the early part of 1972, William F. Martin monitored the payment of a confidential commission by Triton Shipping Company, traveling from time to time to the New York offices of the Triton Shipping Company to verify the computation of the amount of said commission.

11. On or about March 12, 1969, John M. Houchin and William F. Martin withdrew $100,000, in cash, from a Swiss bank account.

12. In December 1970, William F. Martin discussed Swiss bank account funds with William W. Keeler and John M. Houchin.

13. On or about 'December 11, 1970, William F. Martin withdrew $700,000, in cash, from a Swiss bank account.

14. On or about September 29, 1971, William F. Martin instructed C. M. Kittrell to verify the balances in a Swiss bank account.

15. On or about January 5, 1973, a Swiss banker withdrew $30,000 from a Swiss bank account at the direction of William F. Martin.

16. On or about January 7, 1973, a Swiss banker traveled from Geneva to the United States and delivered $30,000, in cash, to William F. Martin.

17. In May of 1973, William F. Martin met with a foreign associate of the company.

18. In June or July of 1973, William F. Martin traveled to Geneva, Switzerland. 19. From 1968 through 1972, William W. Keeler authorized various disbursements from the cash fund maintained in Bartlesville, Oklahoma, by John M. Houchin.

All of the foregoing in violation of Title 18, United States Code, Section 371.

COUNT II

That on or about September 16, 1970, in the Northern District of Oklahoma, William F. Martin, a resident of Bartlesville, Oklahoma, hereinafter called the defendant, did willfully and knowingly aid and assist in, and counsel, procure, and advise the preparation and presentation to the Internal Revenue Service of a corporate income tax return filed in the name of Phillips Petroleum Company for the calendar year 1969, which was false and fraudulent as to a material matter in that commission income in the amount of $146,977.10 paid by Triton Shipping Company to and for the use and benefit of Phillips Petroleum Company was omitted from and unreported in said return, whereas, as the said defendant then and there well knew and believed Phillips Petroleum Company had commission income in 1969 from Triton Shipping Company in the amount of $146,977.10.

In violation of Title 26, United States Code, Section 7206(2).

COUNT III

That on or about September 1, 1971, in the Northern District of Oklahoma, William F. Martin, a resident of Bartlesville, Oklahoma, hereinafter called the defendant, did willfully and knowingly aid and assist in, and counsel, procure, and advise the preparation and presentation to the Internal Revenue Service of a corporate income tax return filed in the name of Phillips Petroleum Company for the calendar year 1970, which was false and fraudulent as to a material matter in that commission income in the amount of $98,285 paid by Triton Shipping Company to and for the use and benefit of Phillips Petroleum Company was omitted from and unreported in said return, whereas, as the said defendant then and there well knew and believed, Phillips Petroleum Company had com

mission income in 1970 from Triton Shipping Company in the amount of $98,285.

In violation of Title 26, United States Code, Section 7206 (2).

COUNT IV

That on or about September 15, 1972, in the Northern District of Oklahoma, William F. Martin, a resident of Bartlesville, Oklahoma, hereinafter called the defendant, did willfully and knowingly aid and assist in, and counsel, procure, and advise the preparation and presentation to the Internal Revenue Service of a corporate income tax return filed in the name of Phillips Petroleum Company for the calendar year 1971, which was false and fraudulent as to a material matter in that commission income in the amount of $104,077.95 paid by Triton Shipping Company to and for the use and benefit of Phillips Petroleum Company was omitted from and unreported in said return, whereas, as the said defendant then and there well knew and believed, Phillips Petroleum Company had commission income in 1971 from Triton Shipping Company in the amount of $104,077.95.

In violation of Title 26, United States Code, Section 7206 (2).

COUNT V

That on or about September 16, 1970, in the Northern District of Oklahoma, defendant Phillips Petroleum Company did cause to be made and subscribed, a United States Corporate Income Tax Return for Phillips Petroleum Company, for the calendar year 1969, which was verified by a written declaration that it was made under the penalties of perjury and was filed with the Internal Revenue Service and which said corporate income tax return the defendant did not believe to be true and correct as to the following material matters:

1. The corporate income tax return failed to report commission income in the amount of $146,977.10 paid by Triton Shipping Company.

2. The corporate income tax return failed to report technical service fee income from Cochin Refineries, Ltd., in the amount of $440,000.

Whereas, as the said defendant then and there well knew and believed, Phillips Petroleum Company had received income from Triton Shipping Company in the amount of $146,977.10, and had received income from Cochin Refineries, Ltd., in the amount of $440,000.

In violation of Title 26, United States Code, Section 7206(1).

COUNT VI

That on or about September 1, 1971, in the Northern District of Oklahoma, defendant Phillips Petroleum Company did cause to be made and subscribed, a United States Corporate Income Tax Return for Phillips Petroleum Company, for the calendar year 1970, which was verified by a written declaration that it was made under the penalties of perjury and was filed with the Internal Revenue Service and which said corporate income tax return the defendant did not believe to be true and correct as to the following material matters: 1. The corporate income tax return failed to report commission income in the amount of $98,285 paid by Triton Shipping Company.

2. The corporate income tax return failed to report technical service fee income from Cochin Refineries, Ltd., in the amount of $440,000.

Whereas, as the said defendant then and there well knew and believed, Phillips Petroleum Company had received income from Triton Shipping Company in the amount of $98,285, and had received income from Cochin Refineries, Ltd., in the amount of $440,000.

In violation of Title 26, United States Code, Section 7206(1).

COUNT VII

That on or about September 15, 1972, in the Northern District of Oklahoma, defendant Phillips Petroleum Company did cause to be made and subscribed, a United States Corporate Income Tax Return for Phillips Petroleum Company, for the calendar year 1971, which was verified by a written declaration that it was made under the penalties of perjury and was filed with the Internal Revenue Service and which said corporate income tax return the defendant did not believe to be true and correct as to the following material matters:

1. The corporate income tax return failed to report commission income in the amount of $104,077.95 paid by Triton Shipping Company.

2. The corporate income tax return failed to report technical service fee income from Cochin Refineries, Ltd., in the amount of $440,000.

Whereas, as the said defendant then and there well knew and believed, Phillips Petroleum Company had received income from Triton Shipping Company in the amount of $104,077.95, and had received income from Cochin Refineries, Ltd., in the amount of $440,000.

In violation of Title 26, United States Code, Section 7206(1).

ROGER E. PICKETT,

Foreman.

THOMAS M. ATKINSON, Special Attorney, Department of Justice.

[From the Washington Post, Aug. 5, 1976]

FORMER GULF OIL OFFICIAL DRAWS PRISON TERM IN FALSE STATEMENT

(By Walter Pincus)

A former assistant comptroller of the Gulf Oil Corp., who had pleaded guilty to making a false statement to a federal grand jury, was sentenced Tuesday to a year in prison.

In sentencing William C. Viglia, 71, a Gulf employee for 50 years, the U.S. District Court Judge H. Dale Cook of Tulsa said that "some corporate official must be held accountable." He also noted that Viglia had not explained to the court why he had made false statements during a 1974 appearance before the grand jury here.

The sentence was one of the stiffest given any defendant in the Watergate special prosecutor's three-year investigation of illegal campaign contributions. Beginning in 1959, Viglia, at the direction of top Gulf executives, handled the internal bookkeeping and delivery from the Bahamas to the United States of some $5.4 million in illegal corporate cash that eventually went to politicians. The man to whom Viglia delivered most of the cash in the 14 years that the system operated was Claude C. Wild, Jr., then Gulf's Washington lobbyist.

Last week Wild was acquitted in U.S. District Court here on one count of making illegal campaign contributions. A second count, dropped from Wild's case by Judge Joseph Waddy, is being appealed by the prosecutor. Other than Wild and Viglia, no Gulf executive has been indicted.

Over the past three years, Viglia had testified freely, under a grant of immunity, about his bringing Gulf cash into the United States.

During an April, 1974, grand jury appearance, according to the indictment brought by the special prosecutor, Viglia lied about a detail of his operation— how much money he brought into the country at any one time.

Viglia testified that he never brought more than $5,000 in any one trip after July, 1972. At that time a new customs regulation went into effect requiring a U.S. citizen to report possession of cash in excess of $5,000 upon entry into the country.

The prosecutor charged that Viglia brought in $25,000 in each of nine separate occasions.

In June, 1976, Viglia was indicted for making the false statement.

By then, Viglia had retired from Gulf. He was also suffering from high blood pressure, according to friends, and decided not to fight the case.

He asked to have the sentencing transferred from a Washington court to one in his home town of Tulsa.

A spokesman for the Watergate special prosecutor yesterday termed the Viglia sentence "very stiff." The prosecutor had sent the court a letter before sentencing pointing out that the former Gulf executive had been "more than cooperative" with federal investigators. Viglia, for example, had testified at the Wild trial for the government.

A spokesman for the Watergate Special Prosecution Force noted that since 1973 only a few cases had resulted in jail sentences.

George M. Steinbrenner III, president of the American Ship Building Co. and the New York Yankees, pleaded guilty to two counts-conspiracy and violating the corporate contribution law-and was fined $15,000 by a federal judge in Ohio.