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Friday Roundup

The Lindsey defendants argue that “repeated and intentional government misconduct” requires dismissal of their jury convictions, a nondescript Commerce Department statement regarding the July 22nd FCPA Business Roundtable, a World Bank service opportunity, there is now competing FCPA insurance products, Ethisphere launches its Anti-Corruption Resource Center, and the DOJ’s Travel Act opposition brief in Carson … its all here in the Friday Roundup.

Lindsey Supplemental Motion to Dismiss Based on Government Misconduct

A previous post (here) asked whether the Lindsey convictions were hanging by a thread and summarized the June 27th hearing on defendants’ prosecutorial misconduct motion during which Judge Matz made some rather damning comments concerning the DOJ’s first-ever corporate FCPA jury trial verdict. Earlier this week, Lindsey Manufacturing, Keith Lindsey and Steven Lee filed a “Supplemental Brief In Support of Motion to Dismiss the Indictment With Prejudice Due to Repeated and Intentional Government Misconduct” (see here and here in two parts).

Highly factual, the brief begins as follows. “The investigation and prosecution of this case were permeated with instances of purposeful, prejudicial government misconduct. The government’s misconduct was patent and pervasive, designed to win the case, not do justice.” Counsel for Lindsey Manufacturing and Keith Lindsey, Jan Handzlik (Greenberg Traurig – here) stated as follows. “Considered individually or on a cumulative basis, the government’s conduct was extraordinarily damaging. We believe this unfair prejudice should result in a dismissal.”

The Lindsey case was profiled in a July 22nd Wall Street Journal article which detailed how “the Justice Department is grappling with a string of high-profile blunders that have prompted stinging rebukes from judges.” Interestingly, the WSJ did not profile the recent mistrial in the DOJ’s high-profile Africa Sting case (see here for the prior post).

As to the Africa Sting case, this recent post from the Blog of Legal Times detailed a hearing earlier this week in the case during which the DOJ said it “wants to retry the first four defendants before any of the other trials.”

Commerce Department Statement Regarding the July 22nd Business Roundtable

On July 22nd, the Commerce Department hosted, along with Assistant Attorney General Lanny Breuer and SEC Enforcement Director Robert Khuzami, a business roundtable on the Foreign Corrupt Practices Act. The statement (here) released yesterday by Cameron Kerry (Commerce Department General Counsel)  stated as follows. “Over twenty company representatives from a wide range of business sectors, sizes, and geographic locations participated. Participants were recommended by business associations with an interest in this area. We engaged in an open and constructive dialogue and many participants noted that U.S. business and the government must work together to fight international bribery and corruption in order to uphold the rule of law and support human rights. We heard an array of concerns, complaints, and compliments about the statute, its enforcement and related guidance, and I was encouraged by the large turnout, the frank conversation, and the clear dedication of all participants to address the corrosive impact of corruption on international commerce.”

World Bank Sanctions Board Vacancies

The World Bank Sanctions Board is comprised of four external members and three internal (World Bank staff) members. The World Bank is inviting applications and nominations for the positions of two Sanctions Board members to be selected from among non-Bank staff. To learn more see here.

Additional FCPA Insurance Option

A prior post (here) noted that an insurance company (Chartis ) has begun offering Foreign Corrupt Practices Act insurance and how this development only confirmed that FCPA Inc. has become a full-fledged industry in and of itself. Recently, Marsh also launched (here) its own FCPA insurance product. As described in the company’s brochure, “FCPA Corporate Response” – “reimburses companies for investigation costs including legal, accounting, auditing, and consulting fees due to an FCPA claim;” “provides coverage for both the organization and individuals for FCPA investigations;” and “acts as primary insurance to a directors and officers (D&O) liability policy to immediately protect individual directors and officers.” The insurance also covers investigations under the U.K. Bribery Act as well.

Ethisphere Launches Anti-Corruption Resource Center

Earlier this week, Ethisphere (a leading international think-tank dedicated to the creation, advancement and sharing of best practices in business ethics, corporate social responsibility, anti-corruption and sustainability) launched its Anti-Corruption Resource Center – see here for the release. A mix of freely accessible and password protected information, the Anti-Corruption Resource Center contains, among other things, various article regarding FCPA and compliance topics, a schedule of upcoming FCPA conferences and events.

DOJ’s Travel Act Opposition Brief

A prior post (here) discussed certain of the Carson defendants motion to dismiss Travel Act charges based on alleged bribes to employees of private companies located in China and Russia. Among other things, defendants argued that the Travel Act has no foreign application.

Recently, the DOJ filed (here) its opposition brief. According to the DOJ, “[b]ecause the majority of defendants’ unlawful conduct was based in the United States, the statutes at issue [the Travel Act and California’s commercial bribery statute] reach defendants’ conduct without any resort to extraterritorial application.” As stated by the DOJ, “defendants S. Carson, R. Carson, Cosgrove, and Edmonds were all U.S. citizens and served as executives at CCI’s headquarters in Rancho Santa Margarita, California” and a “significant portion of the four defendants’ acts in furtherance of the conspiracy occurred either in the United States or through communications with individuals in the United States.” The DOJ further argued as follows. “Although the Court need not consider the question of whether the Travel Act applies extraterritorially, the plain language of the statute, the legislative history, and the case law all indicate that the Travel Act does apply extraterritorially.”


A good weekend to all.

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