Contributing Lawyers

Canada

Cyndee Todgham Cherniak

United States

Susan Kohn Ross

Australia

Andrew Hudson



Foreign Corrupt Practices Act Sentencing News

Much has been made in the general press about the 87-month sentence recently handed down to Charles Jumet in connection with bribes paid to former Panamanian government officials to secure contracts for his company, Ports Engineering Consultants Corp. (PECC), to maintain lighthouses and buoys. Jumet was also sentenced to pay a $15,000 fine and serve three (3) years of supervised release after his incarceration ends. This matter garnered a good deal of the notoriety simply because it is the longest sentence imposed to date for FCPA violations. What is remarkable is that the amount of the bribes is reported to be only approximately $200,000. Jumet’s cohort, John Warwick, is scheduled to be sentenced on May 14, 2010.

Meanwhile, elsewhere in the world, two Siemens executives were found guilty of breach of trust and abetting bribery in Germany, but were let off much more easily earlier this month. One was given a sentence of two years’ probation and a €160,000 fine, whereas the other was ordered to pay a €40,000 fine and had an 18-month suspended sentence imposed on him.

In the U.S., if $200,000 is worth an 87-month sentence, how long might the sentence be that will be imposed on Gerald and Patricia Green? The Greens were found guilty in September 2009 of multiple crimes, most related to FCPA violations, with bribes said to total $1.8 million. The Greens received contracts totaling $14 million to run the Bangkok Film Festival and for other services. The presentencing report proposed life in prison for Gerald Green, but the government has reduced its request to a sentence of 20 to 25 years! Sentencing has been delayed and is now scheduled for June 3. Given his age of 78, whatever sentence is handed down to Gerald Green is likely to be a life sentence.

Now finally we are also hearing that Panalpina feels it is close to resolving the pending SEC and Justice charges and has set aside a reserve of approximately $110 million to handle these consequences.  

 

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