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U.S. v. Noriega et al.

 
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Lindsey Manufacturing Company
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DOJ Criminal
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October 21, 2010
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U.S. v. Noriega et al.
:
U.S. v. Noriega, et al., 10-1031 (C.D. Ca. 2010)
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Lindsey Manufacturing, Keith Lindsey, and Steve Lee were convicted on one count of conspiracy to violate the FCPA and five counts of FCPA violations.

The district court issued a protective order that the government shall disclose to defense counsel materials obtained from the government's investigation into ABB Ltd.

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Mexico
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2002; 2003; 2004; 2005; 2006; 2007; 2008; 2009
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Current and former director of operations of Comisiòn Federal de Electricidad (“CFE”), a state-owned electrical utility in Mexico.
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Lindsey Manufacturing Company ("Lindsey Manufacturing"), a privately held California corporation in Azusa, California, manufactures emergency restoration systems (“ERSs”) and other equipment used by electrical utility companies.   

As demonstrated at trial, Keith E. Lindsey, the president and majority owner of the company, and Steve K. Lee, its Vice President and CFO, hired Enrique Faustino Aguilar Noriega ("Enrique Aguilar") and his wife Angela Aguilar, directors of Grupo Internacional de Asesores S.A. associated with Enrique Faustino Aguilar Noriega ("Enrique Aguilar") to provide sales representation with Comisiòn Federal de Electricidad (“CFE”), a state-owned utility in Mexico. Enrique Aquilar was hired based on his personal relationship with the utility’s director of operations. According to evidence presented at trial, between approximately February 2002 until March 2009, Lindsey Manufacturing paid Enrique Aguilar a 30% commission on contracts it obtained with CFE, knowing that a portion or all of the commission money would be used to pay bribes to foreign government officials. Lindsey and Lee would accordingly raise the price of contracts with CFE to account for the commission payments. Enrique Aguilar submitted false invoices to Lindsey Manufacturing, falsely describing the payments as 15% allocated to facts presented at trial, between 2002 and 2009, Lindsey Manufacturing wired approximately $5.9 million to a Global Financial brokerage account in Texas controlled by Enrique Aguilar for the purpose of paying bribes in exchange for the award of CFE contracts to Lindsey Manufacturing. Enrique Aguilar and his wife and co-defendant, Angela Aguilar allegedly used these funds to pay the credit card bills of the current director of operations, purchase him an $1.8M, 82 foot yacht and a Ferrari Spyder, and transfer $45,000 to his half brother, payments they falsely described as consultant fees. With respect to the former director of operations, the Aguilars allegedly wired $600,000 to relatives of the official, payments made pursuant to false sales representative agreements with the family members. Lee pleaded not guilty to the charges on October 22, 2010. He was released pending trial on a $50,000 bond.

On May 10, 2011, after trial was held, Lindsey Manufacturing, Lindsey, and Lee were convicted on one count of conspiracy to violate the FCPA and five counts of FCPA violations. Angela Aguilar was also convicted on one count of of money laundering conspiracy. Her husband and co-defendant, Enrique Aguilar is charged with conspiracy to violate the FCPA, violations of the FCPA, and money laundering violations. He is a fugitive.

On June 3, 2011, Angela Aguilar entered into a post-trial stipulation whereby she agreed to (i) a sentence of time served and a three-year period of supervised release, (ii) waiver of her rights to an appeal of her conviction and sentence, (iii) a criminal forfeiture in the amount of $2,511,553 million, (iv) waive her right to challenge the forfeiture, and (v) voluntarily denature from the United States.

Before sentencing could take place for the other defendants, lawyers for Lindsey Manufacturing, Keith Lindsey, and Steve Lee moved to dismiss the indictments on the basis of intentional prosecutorial misconduct. The defendants alleged that the government allowed an FBI agent to make false statements to the grand jury, obtained search and seizure warrants using affidavits containing false statements, and failed to disclose exculpatory evidence as required under Brady v. Maryland. On December 1, 2011, the court granted defendants’ motion, citing multiple instances of misconduct by the government. The government filed a notice of appeal to the Ninth Circuit that same day.

The December 1, 2011 order vacated the convictions and dismissed the indictments against the Lindsey defendants with prejudice. On December 9, 2011, the government stipulated that it would not enforce Angela Aguilar’s collateral attack waiver if the court’s order of dismissal is affirmed.

In May 2012, the government withdrew its appeal to the Ninth Circuit.
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Anti-bribery (Domestic Concern), Conspiracy - Anti-Bribery
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Dismissal
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Not stated.
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0
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Domestic Concern
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U.S.
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Contract Procurement/Retention
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Not stated.
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Goods/Services, Wire/check
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Family Member, Sales Agent/Consultant
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5,949,079
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United States
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Switzerland, United States
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foreign official
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No