Execs & Gen'l Counsel Among 22 Nabbed in 1st FBI Foreign Bribes Sting
In what one observer described as a case of “compliance roulette” marking an apparent new era of federal enforcement concerning illegal foreign bribes, 22 people—including corporate executives and at least one general counsel—have been arrested in what is reportedly the first FBI undercover sting operation concerning the Foreign Corrupt Practices Act.
The defendants allegedly thought they were paying off a defense minister for an African country to obtain or retain business. But in fact, the U.S. Department of Justice says, it was an undercover FBI agent to which the defendants agreed to pay a 20 percent “commission” for a $15 million contract to outfit the country’s presidential guard, according to the Blog of Legal Times.
“Indeed, the undercover techniques used in this case should cause all would-be FCPA fraudsters to pause and to ask: ‘Am I really paying off a foreign government official, or could this be a federal agent?’ ” said Assistant Attorney General Lanny Breuer today. “Of course, if you even have to ask yourself this question in all likelihood you shouldn’t be doing whatever it is that you are doing.”
Previously, the government has relied largely on tips from disgruntled company employees to pursue cases concerning alleged violations of the FCPA, which bans businesses from bribing officials of foreign governments.
All but one of the suspects in the new case, who are from companies that supply military and law enforcement agencies, were arrested on the eve of an annual trade show in Las Vegas, reports the Associated Press.
They were charged in indictments issued last month by a federal grand jury in Washington, D.C., and unsealed today.
The federal district court case is the largest ever pursued concerning the statute, and Breuer, who heads the DOJ’s criminal division, says the DOJ currently has 140 open FCPA cases, the news agency recounts.
Additional information about the case, including the defendants’ names and corporate roles, is provided in a DOJ press release.
The case involves conspiracy and money-laundering charges as well as alleged substantive violations of the FCPA, and the indictments seek criminal forfeiture of illegal profits. If convicted, the defendants could face prison terms of as much as 20 years for money-laundering conspiracy and five years on the other charges.
Among the defendants is general counsel Jeana Mushriqui, 30, of Mushriqui Consulting. The four-employee Pennsylvania-based international supplier manufactures and exports bulletproof vests, among other equipment. She and another company executive have been charged with six FCPA violations and conspiracy to commit money laundering, reports Corporate Counsel.
The article says Corporate Counsel could not reach Mushriqui for comment.
Updated on Jan. 20 to include information from subsequent Corporate Counsel article.
