The jury handed down guilty verdicts today on all counts against all of the defendants on trial in the Lindsey case.
Lindsey Manufacturing, its CEO Dr. Keith Lindsey and CFO Steve K. Lee, and the wife of Lindsey’s Mexican sales representative Angela Aguilar, were convicted after just a day of jury deliberations.
Aguilar, a Mexican citizen, was convicted on one count of conspiracy to launder money.
Lindsey Manufacturing, Keith Lindsey, and Steve Lee were each convicted on one count of conspiracy to violate the Foreign Corrupt Practices Act and five substantive FCPA violations.
The government said Aguilar and her husband helped arrange millions in bribes from California-based Lindsey Manufacturing to Nestor Moreno, an official at the Mexican state-owned electric utility Comisión Federal de Electridad. The bribes were allegedly paid in exchange for contracts to Lindsey from CFE.
“We are very disappointed by the jury’s verdict,” said Jan L. Handzlik, lawyer for Lindsey Manufacturing and its CEO Keith Lindsey. ” We continue to believe in our clients’ innocence and will pursue our motion to dismiss the indictment on grounds of prosecutorial misconduct.”
Before the trial started, the Lindsey defendants mounted the strongest challenge yet to the DOJ’s so-called expansive view of who’s a “foreign official” under the FCPA. But Judge Matz upheld the Justice Department. He found that Mexico’s CFE is an “instrumentality” of the government. Therefore, he said, the CFE officer who allegedly received bribes was a “foreign official” under the FCPA.
Judge A. Howard Matz presided over the Los Angeles trial — U.S. v. Noriega et al, U.S. District Court, Central District of California (Western Division – Los Angeles), Case #: 2:10-cr-01031-AHM-4.