Justice Department Drops Foreign Bribery Case

  • Playlist
  • Download
  • Embed
    Embed <iframe src="http://www.npr.org/player/embed/147266966/147266949" width="100%" height="290" frameborder="0" scrolling="no">
  • Transcript

The Justice Department has abandoned its high profile foreign bribery case against businessmen in the military equipment industry after a string of mistrials and acquittals. Prosecutors have spent increasing resources to bring companies to justice under the Foreign Corrupt Practices Act, but their record recently has been very uneven.

AUDIE CORNISH, HOST:

The Justice Department has hit a wall in its pursuit of several cases under the law known as the Foreign Corrupt Practices Act. This week, prosecutors abandoned one case against a group of businessmen in the military equipment industry. It alleged they had tried to bribe African government officials. That follows two other overseas bribery cases where the Justice Department couldn't make charges stick. As NPR's Carrie Johnson reports, that's raising questions about the future of the Foreign Corrupt Practices Act.

CARRIE JOHNSON, BYLINE: For years, when the Justice Department came knocking, companies willingly paid big-dollar settlements rather than go to court and fight allegations of foreign bribery. But lately, some companies and individual executives have rolled the dice. And that hasn't gone too well for the government. Exhibit A: a huge sting operation where the FBI enlisted an informant to get businessmen on tape agreeing to pay kickbacks to win lucrative contracts in Africa. Michael Madigan is a defense lawyer whose client was found not guilty.

MICHAEL MADIGAN: The so-called snitch that they chose was one of the worst individuals that you can imagine, who had a 30-year cocaine and other drug problems, who had stolen millions of dollars and hidden them in Swiss bank accounts.

JOHNSON: And in the recordings, the informant used neutral words like commission to describe the money changing hands.

MADIGAN: Never did they use the word bribe, never did they suggest a kickback.

JOHNSON: That wasn't enough for two separate juries in Washington, D.C., says defense lawyer Matthew Menchel.

MATTHEW MENCHEL: They had two trials, the combined total of which, I think, was about nine months of actual in-court work. They were not able to obtain a conviction against anyone. And I think the government wisely realized that there was no reason to think that any further prosecutions of these defendants would change.

JOHNSON: So the Justice Department took the unusual step of backing away from a case that took years to build. In court papers, prosecutors said they had been hurt by rulings that barred them from introducing evidence about the businessmen's prior bad acts. Former prosecutor Philip Urofsky has been fielding lots of questions about what it means for other cases.

PHILIP UROFSKY: I don't think it's going to embolden companies. Individuals may be a different story.

JOHNSON: That's because unlike companies, individual executives face the possibility of prison time and they may be more open to fight justice in court. That said, Urofsky predicts greater supervision by higher-ups at Justice and more oversight of the way lawyers make decisions in the courtroom. Carrie Johnson, NPR News, Washington.

Copyright © 2012 NPR. All rights reserved. Visit our website terms of use and permissions pages at www.npr.org for further information.

NPR transcripts are created on a rush deadline by a contractor for NPR, and accuracy and availability may vary. This text may not be in its final form and may be updated or revised in the future. Please be aware that the authoritative record of NPR’s programming is the audio.

Comments

 

Please keep your community civil. All comments must follow the NPR.org Community rules and terms of use, and will be moderated prior to posting. NPR reserves the right to use the comments we receive, in whole or in part, and to use the commenter's name and location, in any medium. See also the Terms of Use, Privacy Policy and Community FAQ.