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U.S. v. Daniel Alvirez

 
:
Alvirez, Daniel
:
DOJ Criminal
:
December 11, 2009
:
U.S. v. Daniel Alvirez
:
U.S. v. Alvirez et al, No. 09-335 (D.D.C. 2009)
:
According to the DOJ, this case (also known as the SHOT-Show case) is part of the largest single investigation and prosecution against individuals in the history of the DOJ's enforcement of the FCPA and the first large-scale use of undercover law enforcement techniques to uncover FCPA violations. Undercover agents posed as representatives of the Minister of Defense of an unspecified African country.

In addition to activities connected to the sting operation involving an unspecified African country, Alvirez's guilty plea concerns conduct involving Georgian government officials and government officials from Mexico, Peru. and Guatamala, which is not part of the sting operation.
:
Aerospace/Defense
:
Georgia, Guatemala, Mexico, Peru
:
2008; 2009
:
The Minister of Defense and later President of an unspecified African country (represented in the sting operation by undercover FBI agents posing as his agents); Ministry of Defense Officials of the Republic of Georgia; and unspecified government officials in Mexico, Peru, and Guatamala
:
Daniel Alvirez, the President of an Arkansas company selling law enforcement and military equipment, was one of 22 executives and employees of companies in the military and law enforcement equipment industry indicted for engaging in a scheme to bribe a foreign official through activities carried out with FBI undercoving agents posing as agents of a minister of defense, and later president, of an unspecified African country. FBI agents arrested 21 of the defendants in Las Vegas during an industry conference.

The DOJ obtained an indictment charging Alvirez and his co-worker, Lee Allen Tolleson, the Director of Acquisitions and Logistics, with conspiring to violate the FCPA, substantive violations of the FCPA, and conspiring to engage in money laundering. According to the December 11, 2009 indictment, a business associate facilitated introductions with undercover FBI agents posing as representatives or procurement officers for the Minister of Defense of the unnamed African country.

According to media reports, Richard T. Bistrong is the individual, unnamed in the indictments, who facilitated introductions between the undercover FBI agents and the 22 indicted individuals. On January 21, 2010, the DOJ charged Bistrong with conspiracy to violate the FCPA.

On March 5, 2010, the DOJ filed a superseding information for Alvirez, charging him with conspiracy to violate the FCPA. On the same day, Alvirez's attorney announced that Alvirez would plead guilty. The superseding information states that Alvirez agreed to work with the sales agent to identify other companies and individuals to supply goods to the fictitious Ministry of Defense, knowing that 20% of the total deal amount was intended to be paid as a commission, half as a bribe to the Minister of Defense and half to the business associate and another undercover agent for their corrupt services. According to the superseding information, Alvirez agreed to split the business associate's portion of the commission from the sales made by the other suppliers in the deal, the 21 other executives and employees separately indicted. The superseding information details meetings and telephone conversations between Alvirez and many of the other 21 indicted executives and officials to discuss and celebrate the deal.

The superseding information also alleges that Alvirez conspired to make corrupt payments to Ministry of Defense officials of the Republic of Georgia to assist in obtaining business from the government of Georiga. At the present time, the DOJ has not charged a single conspiracy but a number of separate conspiracies; at a hearing in February 2010, however, the DOJ stated that it may supersede with an indictment alleging a single overarching conspiracy.

On March 11, 2011 Alvirez executed a plea agreement with the DOJ under which he agreed to plead guilty two counts of conspiracy to violate the anti-bribery provisions of the FCPA as detailed in a superceding information filed March 1, 2011. Pursuant to the plea agreement, Alvirez has agreed to provide complete information concerning his wrongful conduct and the wrongful conduct of others.

Three others have pleaded guilty to conspiring to violate the FCPA: Richard Bistrong on September 16, 2010, Jonathan Spiller on March 29, 2011, and Haim Geri on April 28, 2011. None of these defendants have yet been sentenced.

Four other defendants, Pankesh Patel, Andrew Bigelow, John Benson Weir, and Lee Allen Tolleson, went to trial in mid-May, but due to the jury's inability to reach a verdict, a mistrial was declared on July 7, 2011. The second group of defendants (Patrick Caldwell, John Mushriqui, Jeana Mushriqui, Stephen Giordanella, John Godsey, and Marc Morales) went to trial on September 28, 2011. In December 2011, the judge dismissed the conspiracy charges against the second group of defendants, and thus completely exonerated Giordanella. On January 30, 2012, the jury found Godsey and Caldwell not guilty. On January 31, 2012, a mistrial was declared as to the rest of the defendants in the second group.

On February 21, 2012, Judge Richard Leon dismissed the entire case, after the government asked him to dismiss the case with prejudice.
:
Conspiracy - Anti-Bribery
:
Plea
:
Not stated.
:
0
:
Domestic Concern
:
President
:
U.S.
:
Contract Procurement/Retention
:
15,184,600
:
Wire/check
:
Sales Agent/Consultant
:
Not stated.
:
United States
:
United States
:
No