A munitions maker implicated in the failed Africa sting prosecution said Thursday the DOJ has ended an FCPA investigation, allowing the company to complete its stalled dissolution.
Mark Morales, one of the Africa sting defendants, worked for Allied Defense Group Inc.
He and all 22 defendants were eventually exonerated last year when the DOJ dismissed the charges and ended the prosecution.
Not long after the Africa sting arrests, Allied had decided to stop doing business and liquidate the company.
Allied’s plan called for distribution to shareholders of $43 million in cash it had on hand.
But because the DOJ and SEC had launched FCPA investigations of the company, the liquidation had to wait until the probes were resolved.
In November last year, the SEC told Allied it had decided against bringing charges.
But the DOJ didn’t make its determination to drop the investigation until August 8, Allied said.
A letter to shareholders Thursday from Allied’s board said: ‘This is very exciting news for the shareholders of [Allied] as we can now proceed with our dissolution of the Company and distributing the remaining net assets to our shareholders.’
The full letter is here (.pdf).
Richard L. Cassin is the Publisher and Editor of the FCPA Blog. He can be contacted here.