Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, June 2, 1995 TAG: 9506020096
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
SOURCE: ASSOCIATED PRESS
DATELINE: CONCORD, N.H. LENGTH: Medium
Dennis Josleyn, former West Coast Honda sales manager for American Honda Motor Co., and John Billmyer, former senior vice president, will appeal, their lawyers said.
Prosecutors say dealers in 30 states gave $15 million in cash, Rolex watches, fur coats, Mercedes-Benzes, furniture, business suits and college tuition to Billmyer, Josleyn and other American Honda executives.
In return, the dealers got lucrative dealerships and cars that could be sold for thousands of dollars above sticker price. Hondas were in short supply in the 1980s because Japan restricted exports to ease pressure on American automakers.
Assistant U.S. Attorney Michael Connolly said he knew of no larger commercial bribery case in terms of the amount of money changing hands.
Josleyn and Billmyer were convicted of conspiracy. Josleyn also was convicted of racketeering and fraud for skimming money from sales training and advertising schemes.
Josleyn, 48, could get up to 35 years in prison. Billmyer, 65, could receive up to five years. The men remained free on bail until sentencing Aug. 28. Josleyn was ordered to wear an electronic monitor.
``The verdict is as shocking as we found the prosecution,'' said Josleyn's lawyer, Paul Twomey.
Sixteen former Honda and Acura executives, two former dealers, an advertiser and a lawyer pleaded guilty earlier to charges including racketeering, perjury and fraud. None have been sentenced.
Charges were dropped against two others who had been awaiting trial. Prosecutors would not say whether they expect further indictments.
Prosecutors have called Torrance, Calif.-based American Honda the chief victim in the case because it faces millions of dollars in lawsuits from dealers who did not get preferential treatment. No Japanese executives have been charged.
American Honda said the convictions ``close the book on a painful and difficult period in our history.'' Honda said it has ``absolute confidence and trust in the integrity of our thousands of loyal and honest dealers and employees.''
During the trial, jurors heard from dealers who admitted giving executives swimming pools and envelopes stuffed with cash; from at least one executive who admitted receiving Rolex watches, Hong Kong shopping sprees and house payments from dealers; from a former American Honda employee who said he implored the company to do something about rumored kickbacks; and from a current American Honda vice president who said she heard rumors but deemed them unworthy of investigation.
Josleyn and Billmyer admitted accepting gifts from dealers.
Josleyn claimed - but Honda denied - that the company condoned the kickbacks to compensate for poor salaries. Billmyer's lawyers told the jury that if he did participate in a conspiracy, it was not the scheme the government alleged and that the statute of limitations had expired.
The case unfolded in New Hampshire when an Acura dealer in Concord sued American Honda, claiming he had been treated unfairly. Allegations of graft prompted a criminal investigation.
by CNB