WASHINGTON--(BUSINESS WIRE)--After a twelve week jury trial in U.S. District Court for the District of Columbia, U.S. District Judge Richard J. Leon entered judgment acquitting Carlton Fields client Stephen G. Giordanella of conspiracy to violate the Foreign Corrupt Practices Act (“FCPA”), finding that the Government’s evidence was insufficient to sustain a conviction. Carlton Fields Shareholders Stephen J. Bronis and Paul A. Calli represented Mr. Giordanella at trial with the assistance of Paralegal Aixa Ferrer.
The allegations against Giordanella stemmed from a two-and-a-half year undercover “sting” operation concocted by the Fraud Section of the U.S. Department of Justice (“DOJ”) and the Federal Bureau of Investigation (“FBI”) in Washington, D.C., and involved approximately 150 FBI agents. Prosecutors claimed 22 military and law enforcement equipment industry executives tried to bribe the defense minister of Gabon, Africa in order to win contracts to provide body armor, weapons and military gear, in violation of the FCPA. The FCPA prohibits U.S. persons and companies, and foreign persons and companies acting in the United States, from bribing foreign government officials for the purpose of obtaining or retaining business. Giordanella was accused of being a member of the conspiracy.
According to the testimony at trial of the lead FBI case agent and all evidence presented by the government during trial and during pretrial proceedings, the government confirmed that the Minister of Defense of Gabon wasn’t involved and no bribe was to be paid for procurement of equipment to take place. Instead, the government had entered a partnership with Richard Bistrong who for decades had engaged in foreign bribery, embezzlement from his employer, tax fraud and evasion, drug deals, solicitation of prostitutes and transportation of prostitutes across state lines. In an effort to reduce his prison sentence, Richard Bistrong convinced the government to fund him and a “sting” operation and helped the government to create a fake scenario that resulted in the prosecution.
The government indicted the defendants on December 11, 2009, becoming the largest prosecution of individuals since the DOJ began enforcing the FCPA in 1977. It also marks the first large-scale use of undercover tactics in an FCPA case. Assistant Attorney General Lanny A. Breuer, head of the DOJ’s Criminal Division, has toured the country touting the strength of the government’s case, calling it “a turning point” in FCPA enforcement and quipped “what happens in Vegas does not stay in Vegas,” a reference to the location in which the DOJ enticed people to travel as part of orchestrating their arrests. Twenty-one of the 22 accused persons traveled to Las Vegas and were arrested. Mr. Giordanella did not travel to Las Vegas.
In a procedurally uncommon move that rebuked the government’s case and highlighted the lack of evidence, Judge Leon granted Mr. Giordanella’s motion for acquittal under Rule 29 of the Federal Rules of Criminal Procedure, prior to Mr. Giordanella having the opportunity to present evidence on his behalf and prior to the case being submitted to a jury.
“The Court found that government had not presented sufficient evidence to establish the existence of the charged crime. We are grateful the Court made the correct and just ruling. Mr. Giordanella is grateful to be exonerated, and can now begin to put this unnecessary and unfortunate experience behind him,” said Bronis.
Calli added, “Mr. Giordanella was innocent and should never have been accused in the conspiracy. In many respects, Mr. Giordanella’s indictment in the DOJ’s fake Gabon sting operation conspiracy represents a prosecution at its most dangerous,” said Calli.
About Carlton Fields: Carlton Fields is a leading provider of legal and consultative services to a broad spectrum of business clients ranging from multi-national Fortune 100 companies to start-ups. With locations in the major business centers in Florida and the Southeast, Carlton Fields provides clients with access to their more than 300 attorneys and government consultants. For more information, visit www.carltonfields.com.