U.S. v. Painter et al, No. 09-cr-337 (D.D.C. 2009)
Alvirez, Daniel; Ashiblie, Helmie; Bigelow, Andrew; Bistrong, Richard T.; Caldwell, R. Patrick; Cohen, Yochanan; Giordanella, Stephen Gerard; Geri, Haim; Godsey, Gregory; Goncalves, Amaro; Mishkin, Saul, Morales, Mark Frederick; Mushriqui, John M.; Mushriqui, Jeana; Painter, David R.; Patel, Pankesh, Paz, Offer; Sacks, Michael; Spiller, Jonathan M.; Tolleson, Lee Allen; Weisler, Israel; Wier, John Benson.
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 a country in Africa.
None, undercover agents in an FBI sting.
Lee M. Wares, a UK citizen, was Director of a company based in the UK that marketed armored vehicles. The UK company was a subsidiary of a Cincinnati-based company that produced security projects. He is one of 22 executives and employees of companies in the military and law enforcement equipment industry indicted for engaging in a scheme to bribe foreign government officials. FBI agents arrested 21 of the defendants in Las Vegas during an industry conference. A business associate facilitated introductions with undercover FBI agents posing as representatives or procurement officers for the Minister of Defense of an unnamed African country.
Wares and David Painter, Chairman of the UK company, allegedly agreed to pay a sales agent a 20% commission to obtain two contracts to sell night vision goggles and armored vehicles to the Ministry of Defense of the African country, knowing that half of the "commission" was intended to be paid as a bribe to the Minister of Defense and half would be split between the sales agent and his business associate who facilitated the introduction. The DOJ alleges that Painter and Wares sent a wire transfer in the amount of approximately $12,183 in furtherance of the scheme.
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 December 11, 2009, the DOJ obtained an indictment charging Wares and David Painter with conspiring to violate the FCPA, substantive violations of the FCPA, and conspiring to engage in money laundering. The indictment seeks forfeiture of any proceeds traceable to FCPA offenses or money laundering.
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.
Meanwhile, four defendants have pleaded guilty to conspiring to violate the FCPA: Richard Bistrong on September 16, 2010, Daniel Alvirez, on March 11, 2011, Jonathan Spiller on March 29, 2011, and Haim Geri on April 28, 2011. None of these defendants have yet been sentenced.
Aiding and abetting anti-bribery, Anti-bribery (Other Persons), Conspiracy - Anti-Bribery