DOJ Nets 22 in FCPA Sting

“The largest single investigation and prosecution against individuals in the history of DOJ’s enforcement of the Foreign Corrupt Practices Act”

The Department of Justice has gotten serious about the FCPA.

“This ongoing investigation is the first large-scale use of undercover law enforcement techniques to uncover FCPA violations and the largest action ever undertaken by the Justice Department against individuals for FCPA violations,” said Assistant Attorney General Lanny A. Breuer. In connection with these indictments, approximately 150 FBI agents executed 14 search warrants in locations across the United States. Plus, the United Kingdom’s City of London Police executed seven search warrants.

According to the indictments, the defendants agreed to pay a 20 percent “commission” to a sales agent who the defendants believed represented the minister of defense for a country in Africa to win a portion of a $15 million deal. The “sales agent” was actually an undercover FBI agent. The defendants were told that half of that commission would be paid directly to the minister of defense. The defendants allegedly agreed to create two price quotes in connection with the deals, with one quote representing the true cost of the goods and the second quote representing the true cost, plus the 20 percent commission. The defendants also allegedly agreed to engage in a small “test” deal to show the minister of defense that he would personally receive the 10 percent bribe.

I have not gotten through all of the indictments, but the DOJ purposefully omitted the name of the employers of the indicted individuals. I would guess that he have not heard the end of this. People can run; companies cannot.

Sources:

• DOJ Press Release – Twenty-Two Executives and Employees of Military and Law Enforcement Products Companies Charged in Foreign Bribery Scheme
• A Historically Massive FCPA Sting Operation Nets 22 Indictments for Bribery by Mike Koehler on Corporate Compliance Insights
• Massive FCPA Indictment Unsealed by Richard Cassin on The FCPA Blog
• Indictments:
  • Daniel Alvirez And Lee Allen Tolleson – Indictment
  • Helmie Ashiblie – Indictment
  • Ofer Paz – Indictment
  • Andrew Bigelow Indictment
  • R. Patrick Caldwell And Stephen Gerard Giordanella – Indictment
  • Haim Geri Indictment
  • Saul Mishkin – Indictment
  • John M. Mushriqui And Jeana Mushriqui – Indictment
  • Jonathan M. Spiller – Indictment
  • John Benson Wier III – Indictment
  • Amaro Goncalves – Indictment
  • Pankesh Patel Indictment
  • John Gregory Godsey Indictment
  • David R. Painter and Lee M. Wares – Indictment
  • Yochanan R.Cohen Indictment
  • Israel Weisler – Indictment