Frederic Bourke, the finance and investment officer who co-founded Dooney & Bourke in 1975, became entangled in an international corruption scandal far removed from the handbag business. Bourke invested $8 million in a hedge fund managed by Czech financier Viktor Kožený, nicknamed the 'Pirate of Prague,' whose operation centered on acquiring control of Azerbaijan's state oil company. Prosecutors alleged that the 1998 scheme involved paying cash bribes and promising Azerbaijani President Heydar Aliyev and other government officials a secret two-thirds interest in the oil company. Although Bourke did not personally hand over the bribes and ultimately lost his investment, the government argued that he knew funds placed in Kožený's enterprise were being used to corrupt Azerbaijani officials. On July 9, 2009, a jury in the Southern District of New York convicted Bourke of conspiracy and bribery-related offenses under the Foreign Corrupt Practices Act and the Travel Act. He was fined $1 million and sentenced to one year in prison followed by three years of probation, producing a severe reputational rupture between the respected American accessories label and the criminal conviction of one of its founders.
Preparing the daily feature…
AI concept artworkArchive Record · 2000s
The Dooney & Bourke Co-Founder Convicted in the 'Pirate of Prague' Azerbaijan Bribery Scheme
Frederic Bourke; Dooney & Bourke / 2000s
Frederic Bourke, the finance and investment officer who co-founded Dooney & Bourke in 1975, became entangled in an international corruption scandal far removed from the handbag business. Bourke invested $8 million in a hedge fund managed by Czech financier Viktor Kožený, nicknamed the 'Pirate of Prague,' whose operation centered on acquiring control of Azerbaijan's state oil company. Prosecutors alleged that the 1998 scheme involved paying cash bribes and promising Azerbaijani President Heydar Aliyev and other government officials a secret two-thirds interest in the oil company. Although Bourke did not personally hand over the bribes and ultimately lost his investment, the government argued that he knew funds placed in Kožený's enterprise were being used to corrupt Azerbaijani officials. On July 9, 2009, a jury in the Southern District of New York convicted Bourke of conspiracy and bribery-related offenses under the Foreign Corrupt Practices Act and the Travel Act. He was fined $1 million and sentenced to one year in prison followed by three years of probation, producing a severe reputational rupture between the respected American accessories label and the criminal conviction of one of its founders.
The daily editorial is currently unavailable. There’s still an entire archive to explore.