Tyson Foods Pleads Guilty,
Agrees To Fine In Espy Case

WASHINGTON — Poultry giant Tyson Foods Inc. has agreed to pay $6 million in fines and costs after pleading guilty to a federal charge it made illegal gifts to former Clinton administration Agriculture Secretary Mike Espy.

The Arkansas-based company and its head, Don Tyson, have long been political and financial backers of President Clinton, dating back to his days as governor of Arkansas.

Tyson Foods was accused of providing Espy and others with about $12,000 in football tickets, presidential inaugural ball tickets, lodgings and other gifts. The company had maintained its innocence prior to striking the multi-million dollar deal.

In exchange for the plea, no executives were charged in the criminal information brought by independent counsel Donald Smaltz. The company also was allowed to continue participating in government programs, a benefit worth many times the amount of its fine. Tyson Foods sells more than $200 million dollars’ worth of poultry and other products to the military and to USDA’s school lunch and nutrition programs per year and receives export subsidies as well. Other companies have been barred from government business for felony convictions.

There was little or no sign of contrition among company officials. A statement released following the plea agreement swept aside the admission of criminal violations as simply a "long, costly, distracting matter."

Espy was indicted in August on 39 charges of accepting gratuities from Tyson and other agribusiness firms. He continues to deny any wrongdoing. Gifts from Tyson prompted the internal Agriculture Department investigation and subsequent investigation by Smaltz.

Espy and former Housing Secretary Henry Cisneros are the highest-ranking officials of the Clinton administration to be accused of a crime. Cisneros was indicted this month on conspiracy, obstructing justice and other charges related to false statements to the FBI about payments to his former mistress, Linda Jones.

The Tyson agreement still must be approved by U.S. District Judge Ricardo Urbina, who scheduled sentencing for Jan. 14. The senior chairman of the company, Don Tyson, appeared in court on behalf of the firm.

Tyson and his son John, vice chairman of Tyson Foods, had been granted immunity in exchange for their grand jury testimony. Smaltz has been investigating Archie Schaffer, the company's senior spokesman. The firm's Washington lobbyist, Jack Williams, has been indicted and is scheduled for trial Feb. 2.

As part of the plea bargain, the company must set up ethics training and other safeguards against future wrongdoing.

The agreement brings to $10.5 million the amount Smaltz has recovered from defendants in the Espy case, roughly half a million dollars more than the investigations have cost so far.