FCPA Dismissal, Probationary Sentence, and Not-So-Speedy Trial
August 2022
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DISMISSAL OF ALL FEDERAL CHARGES – FCPA
Last month, the court dismissed all four federal charges against our client. The Department of Justice had charged him with conspiring to violate the Foreign Corrupt Practices Act, conspiring to commit money laundering, and committing two counts of substantive money laundering. The DOJ alleged that our client, a Swiss citizen of Portuguese origin, promoted a bribery scheme involving Venezuela’s state-owned oil company, PDVSA.
United States District Judge Kenneth Hoyt, of the Southern District of Texas, rejected every government argument and granted our motions to dismiss and to suppress our client’s statements. The court agreed with five of our arguments and confirmed that this prosecution was unconstitutional and exceeded the bounds of the law.
The DOJ has appealed the court’s ruling, contending that a 24-hour trip to the United States by our client suffices to establish federal jurisdiction over him.
NO PRISON REQUIRED – BANK FRAUD
In another victory, a client recently received a no-prison sentence after pleading guilty in the Southern District of Texas to the crime of conspiring to commit bank fraud. She had admitted to defrauding her employer of 38 years, a nationally recognized bank, of nearly $9 million, but the district court agreed that she should not receive a prison sentence due to her age, health, her role in the overall scheme, and the unique circumstances of her offense.
FIFTH CIRCUIT UPDATE: NOT-SO-SPEEDY TRIAL
In United States v. Dent, the Fifth Circuit reversed a defendant’s conviction and ordered his case dismissed because the court had not provided him a speedy trial.
Dent’s trial had initially been postponed while an essential witness was on military deployment. Once that witness returned, however, the court postponed the trial again without providing any additional reasons for delay.
The Fifth Circuit held that the speedy trial clock had begun to tick as soon as the witness returned, and the district court erred by delaying trial so long without justification.
KHALIL & LAKE is a white-collar litigation boutique focusing on federal criminal law, appeals, and complex investigations in a variety of business sectors. If you have any questions about these issues, or if you would like a copy of any materials mentioned here, please let us know.