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U.S. v. Gerald Green and Patricia Green

 
:
Green, Gerald
:
DOJ Criminal
:
December 7, 2007
:
U.S. v. Gerald Green and Patricia Green
:
U.S. v. Gerald Green and Patricia Green, No. 08-00059, (C.D. Cal. 2009)
:
This is the first matter involving the movie and entertainment industry.

In what may be an emerging trend, the department has included tax, money laundering and criminal forfeiture counts.

The Thai officials involved in the case were separately charged with money laundering offenses, in a novel approach by the DOJ to prosecute foreign officials who receive bribes. A hearing on the issue is scheduled for October 20, 2011.

In handing down the six-month sentence (much lower than the 10 years the government requested) U.S. District Judge George Wu drew a distinction between people who pay bribes to obtain contracts with no intent of performing them and those who secure contracts through bribes and actually do the work. No such distinction exists in the FCPA. The DOJ appealed the sentence, but subsequently withdrew the appeal on August 23, 2011.

:
Entertainment
:
Thailand
:
2002; 2003; 2004; 2005; 2006
:
Juthamas Siriwan - a senior official of the Tourism Authority of Thailand, and deputy chair of Thailand's Pue Pandin (People's Power) Party (since resigned).
:
Gerald and Patricia Green owned or operated several incorporated and unincorporated businesses in the U.S. to obtain and manage contracts with the Tourism Authority of Thailand ("TAT") and a TAT-controlled entity, the Thailand Privilege Card Co. Ltd. ("Card Co."). TAT, a government agency, administered the funds for the annual Bangkok International Film Festival. Between 2002 and 2007, the Greens paid at least $1,800,000 in bribes to the senior government officer of the TAT to secure contracts with the Film Festival and with Card Co. for other tourism related projects. The Greens inflated the value of their contracts with the TAT and Card Co. and with third-party contractors with whom they subcontracted to include corrupt payments of 10-20% of the contract value, that would be passed on to the official. The payments were made indirectly to bank accounts of the daughter and a friend of the government official in Singapore, the United Kingdom, and the Isle of Jersey, and were recorded improperly in the books and records of the Greens' companies as "sales commissions." Patricia Green took unlawful tax deductions for those payments, accounting for them as commissions in the costs of goods sold. The DOJ alleged, in a second superceding indictment, that Gerald Green altered and falsified film production budgets to make them appear as though they were created in 2006 to disguise bribe payments as bona fide expenses.

The Greens were charged by criminal complaint filed on December 7, 2007 and were arrested on December 18, 2007 and entered not guilty pleas to all counts. On October 1, 2008, a superseding indictment was filed alleging additional facts, adding money laundering and tax counts, and seeking criminal forfeiture. The tax counts were brought only against Patricia Green. A restraining order was issued preventing the Greens from disposing of their assets until after trial. On September 11, 2009, after a two-and-a-half week trial, a jury found the Greens both guilty of conspiracy to violate the FCPA and money laundering laws along with substantive violations of those laws. The jury also found Patricia Green guilty of falsely subscribing U.S. income tax returns in connection with their bribery scheme. Prosecutors dismissed a substantive money laundering count prior to the case going to the jury. The jury was unable to reach a verdict on the obstruction of justice count against Gerald Green.

On September 10, 2010, Gerald and Patricia Green were each sentenced to six months imprisonment. The Greens were jointly ordered to pay $250,000 in restitution.
:
Anti-bribery (Domestic Concern), Books and records (Individual), Conspiracy - Anti-Bribery, Conspiracy - Books & Records
:
Money Laundering, Tax
:
Conviction
:
Not stated.
:
0
:
Domestic Concern
:
Director, Founder
:
U.S.
:
Contract Procurement/Retention
:
14,000,000
:
Wire/check
:
Direct, Family Member
:
1,800,000
:
Singapore, United Kingdom, United States
:
Singapore, Switzerland, United Kingdom, United States
:
No
:
No
:
Thailand