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The FCPA’s “Flynn” Parallel

parallel

As has been widely reported, recently the Department of Justice moved, pursuant to Rule 48(a) of the Federal Rules of Criminal Procedure, to dismiss its case against Michael Flynn (President Trump former National Security Advisor) even though Flynn previously pleaded guilty to a single count of making false statements to FBI investigators. As stated in this filing, “the Government has determined, pursuant to the Principles of Federal Prosecution and based on an extensive review and careful consideration of the circumstances, that continued prosecution of this case would not serve the interests of justice.”

While lacking the national media coverage of the Flynn matter, this post highlights how the DOJ dropped its FCPA case against Si Chan Wooh four years after Wooh pleaded guilty.

In 2007, Si Chan Wooh, an employee of SSI International (a wholly owned subsidiary of Schnitzer Steel), was criminally charged with conspiring to violate the FCPA by making cash payments to officers and employees of foreign, government-owned steel production companies to induce employees of those companies to do business with, and provide preferential sales terms to, Schnitzer Steel. (In 2006, Schnitzer and SSI International resolved DOJ and SEC FCPA enforcement actions by agreeing to pay approximately $15 million).

Wooh pleaded guilty. (See here for the plea agreement and here for the DOJ release).

However, in 2011 ‘‘the Justice Department informed Wooh’s counsel that a Federal Bureau of Investigation agent assigned to the investigation of Schnitzer and its employees had written a letter to a high-ranking prosecutor in Washington saying Wooh should not have been charged in connection with the case.’’ (See here).

Thereafter, the DOJ moved to dismiss the case pursuant to Rule 48(a) of the Federal Rules of Criminal Procedure. As stated in the this filing. “The United States makes this motion out of prosecutorial discretion in the interests of justice and the efficient use of government resources.” Judge Garr King (D. Ore.) then granted the dismissal.

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