Former Executives of iSun Resolve Non-FCPA, FCPA Enforcement Action
The Foreign Corrupt Practices Act has always been a law much broader than its name suggests.
Sure, the FCPA contains anti-bribery provisions which concern foreign bribery.
Sure, the FCPA’s books and records and internal controls provisions can be implicated in foreign bribery schemes.
However, the fact remains that most FCPA enforcement actions (that is enforcement actions that charge or find violations of the FCPA’s books and records and internal controls provisions) have nothing to do with foreign bribery. For lack of a better term, these enforcement actions have longed been called non-FCPA, FCPA enforcement actions by this site.
The latest example concerns an SEC enforcement action against former executives and/or directors of iSun, Inc. (formerly a solar energy company based in Vermont whose stock was publicly traded).
FCPA Professor Turns 17
In July 2009, FCPA Professor was launched with this simple mission statement.
Seventeen years and approximately 4,900 posts later, FCPA Professor is still here and the mission remains the same. In fact, FCPA Professor is the longest running daily information source about the Foreign Corrupt Practices Act around.
What started out in 2009 as a “blog” has turned into a comprehensive website that has been described as “the Wall Street Journal concerning all things FCPA-related,” and “the most authoritative source for those seeking to understand and apply the FCPA.” Along the way, FCPA Professor has been named a Top Law Blog for in-house counsel by Corporate Counsel, a Top 25 Business Law Blog by LexisNexis, and a top 100 Legal Blog by the American Bar Association.
Judge Orders Adani To Answer Two Questions
In 2024, the DOJ criminally charged various individuals in connection with an alleged Indian bribery scheme. (See here for the prior post).
Gautam Adani, and others, were charged with securities fraud conspiracy and wire fraud conspiracy and several other defendants were charged with conspiracy to violate the FCPA’s anti-bribery provisions, among other charges.
On May 18th, the DOJ filed a consent motion stating: “The government respectfully submits this motion, pursuant to Federal Rule of Criminal Procedure 48(a), requesting that the Court dismiss the indictment in this case with prejudice. The Department of Justice has reviewed this case and has decided, in its prosecutorial discretion, not to devote further resources to these criminal charges against individual defendants.”
Sure Enough – Another FCPA Defendant Cites DOJ’s Adani Letter
This recent post highlighted the DOJ’s response in the Adani et al matter in which Judge Nicholas Garaufis (E.D.N.Y.) directed the DOJ “to advise the court of each reason for dismissing the Indictment with prejudice as against all Defendants and to provide the court with sufficient factual support for each basis.”
The DOJ responded with a 10 page letter from R. Trent McCotter (Principal Associate Deputy Attorney General).
The letter began with various reasons for why it was not proper for a Court to demand more detailed explanations for such a DOJ discretionary decision.
Among other things, McCotter stated:
Hobson Sentencing Rescheduled As New Counsel Takes Over
As discussed here, in February Charles Hunter Hobson (who served in a variety of roles at Corsa Coal from 2013 to 2018) was found guilty by a jury for various Foreign Corrupt Practices Act and related offenses in connection with an Egyptian bribery scheme. As highlighted here, the “foreign official” jury instruction in the Hobson case was flawed and Hobson’s motion for acquittal (filed on April 6th) remains outstanding.
Recently, Hobson switched counsel and is now represented by R. McConnell Group attorneys Ryan McConnell, Matthew Boyden, and Larry Finder.
Yesterday, against the DOJ’s objection, Judge Robert Colville (W.D. Pa) granted Hobson’s request to continue sentencing. Sentencing, which was set for August 4th, is now rescheduled to October 28th.