As detailed in this prior post, in May 2011, Lindsey Manufacturing Company (a privately held manufacturer of electrical transmission and related products that employs approximately 100 individuals) and Keith Lindsey (President) and Steven Lee (Chief Financial Officer) were convicted after a five week trial by a federal jury in the Central District of California of one count of conspiracy to violate the FCPA and five counts of FCPA violations. Reacting to the guilty verdicts, Assistant Attorney General Lanny Breuer stated in this release as follows. “Today’s guilty verdicts are an important milestone in our Foreign Corrupt Practices Act (FCPA) enforcement efforts. Lindsey Manufacturing is the first company to be tried and convicted on FCPA violations, but it will not be the last.”
As detailed in this prior post, in December 2011, the DOJ’s “important milestone” was erased when Judge Howard Matz, after months of legal wrangling, vacated the convictions and dismissed the indictment. See here for Judge Matz’s ruling. In his ruling, Judge Matz summed up the government’s conduct as an “unusual and extreme picture of a prosecution gone badly awry.”
The DOJ appealed Judge’s Matz’s ruling to the 9th Circuit. Earlier today, the DOJ filed a motion for voluntary dismissal of the appeal.
In an e-mail statement, Handzlik stated as follows. “By filing today’s dismissal motion, the government has dropped its prosecution of the Company and its officers, and will also end its efforts to forfeit about $24 million from the Company. By deciding not to pursue its appeal of Judge Matz’ dismissal order, the government has ended the case.” Handzlik further stated as follows. “This is a great day for the fair administration of justice. We couldn’t be happier for Keith, Steve and the 110 loyal, hard-working employees of Lindsey Manufacturing Company. This dismissal further vindicates Dr. Lindsey’s belief in our system of justice and in his innocence. Keith and Steve were steadfast in their belief that the government had not played fair and that the truth would come out.”