International Trade Law News

Published by Jacobson Burton Kelley PLLC

The Justice Department issued a press release today regarding Friday's conviction of two Los Angeles-area film executives in a closely watched criminal case involving the U.S. Foreign Corrupt Practices Act (FCPA).

After a two and a half week jury trial in the Central District of California Courthouse in Los Angeles, Gerald Green and Patricia Green were found guilty of conspiracy and substantive violations of the FCPA and U.S. money laundering laws in relation to an alleged bribery scheme that enabled the defendants to obtain a series of Thai government contracts, including contracts to manage and operate the annual Bangkok International Film Festival.

Patricia Green was also found guilty of falsely subscribing U.S. income tax returns in connection with this scheme.

Mr. and Mrs. Green, who were charged and arrested in December 2007, owned and operated Film Festival Management, a Los Angeles-based business that was created to bid for the management contract for the annual Bangkok International Film Festival. In January 2008 they were indicted by a federal grand jury in Los Angeles on one count of conspiracy to bribe a foreign public official in violation of the FCPA and six substantive counts of violating the FCPA.

Earlier this year, the Greens were charged in a second superseding indictment with 21 counts, including conspiracy to violate the FCPA, conspiracy to violate U.S. anti-money laundering laws, eight substantive counts of violating the FCPA, seven counts of violating anti-money laundering laws, one count of obstruction of justice and two counts of making a false statement on a U.S. Income Tax Return.

According to the superseding indictment, the Greens paid approximately $1.8 million in bribes to the former TAT governor through numerous bank accounts in Singapore, the United Kingdom and the Isle of Jersey in the name of the former governor’s daughter and a friend of the former governor. The contracts received by the Greens resulted in more than $13.5 million in revenue to businesses they owned. Evidence introduced at trial showed that beginning in 2002 and continuing into 2007, the Greens conspired with others to bribe the former governor of the TAT in order to get the film festival contracts as well as other TAT contracts. As a result of the then governor’s position at the TAT, the former governor was able to influence the awarding of these contracts.

Trial evidence also showed that the Greens used different business entities, some with fake business addresses and telephone numbers, in their dealings with the TAT in order to hide the money the Greens were being paid under the contracts. Trial evidence also showed that the Greens disguised the payments as "sales commission" payments and made the payments for the benefit of the former governor through the foreign bank accounts of intermediaries, including bank accounts in the name of the former governor’s daughter and friend.

The conspiracy and FCPA charges each carry a maximum penalty of five years in prison, and each of the money laundering counts carries a maximum penalty of up to 20 years in prison. The false subscription of a U.S. income tax return carries a maximum penalty of three years in prison and a fine of not more than $100,000.

Sentencing has been set for Dec. 17, 2009.

Labels: FCPA