Source: http://fcpa.stanford.edu/enforcement-action.html?id=248
Timestamp: 2019-08-22 12:15:19
Document Index: 59500883

Matched Legal Cases: ['§ 78', '§ 78', '§ 78', '§ 2', '§ 78', '§ 1956', '§ 1956', '§ 2', '§ 1956', '§ 2461', '§ 981', '§ 853', '§ 982', '§ 1956', '§ 1956', '§ 2', '§ 1956', '§ 853', '§ 982']

United States of America v. Enrique Faustino Aguilar Noriega, et. al · Lindsey Manufacturing's Involvement in Mexico in 2002
United States of America v. Enrique Faustino Aguilar Noriega, et. al
Initiation Date: 09/15/2010
Andre Birotte Jr., United States Attorney
Robert E. Dugdale, Assistant United States Attorney, Chief, Criminal Division
Douglas M. Miller, Assistant United States Attorney, Public Corruption & Civil Rights Section
Nicola J. Mrazek, Senior Trial Attorney, Fraud Section, Criminal Division
Assisting Agencies: Federal Bureau of Investigation , Internal Revenue Service , Department of Justice- Criminal Division’s Office of International Affairs , U.S. Department of Homeland Security
Docket or Case Number: 10-cr-01031
Lindsey Manufacturing Company ("LMC") was a privately held company incorporated in California and headquartered in Azusa, California. LMC manufactured emergency restoration systems ("ERSs") and other equipment that was used by electrical utility companies. Many of defendant LMC's clients were foreign, state-owned utilities, including Comision Federal de Electricidad ("CFE"), an electric utility company owned by the government of Mexico, which was one of LMC's most significant customers.
Keith E. Lindsey was the President of, and had a majority ownership interest in, LMC. In that position, Lindsey had ultimate authority over all of LMC's operations.
Steve K. Lee was the Vice President and Chief Financial Officer of LMC. In that position, Lee controlled LMC's finances.
Enrique Faustino Aguilar Noriega was born in Mexico and was a lawful permanent resident of the United States. Enrique Aguilar was a Director of Grupo Internacional De Asesores S.A. ("Grupo"), a company incorporated in Panama and headquartered in Mexico. Grupo's purported business was to provide sales representation services for companies like LMC that had business with CFE. Enrique Aguilar was also the Director of Sorvill International S.A. ("Sorvill"), a company incorporated in Panama and headquartered in Mexico. Like Grupo, Sorvill's purported business was to provide sales representation for companies that had business with CFE.
Angela Maria Gomez Aguilar was a citizen of Mexico and was married to Enrique Aguilar. Angela Aguilar served as an Officer and a Director of Grupo, where she managed Grupo's finances and was the sole signatory on Grupo's Global Financial brokerage account.
According to the allegations in the charging documents, from about February 2002 through about March 2009, LMC, Lindsey, and Lee retained Enrique Aguilar as LMC's sales representative in Mexico because of his close personal relationship with and influence over the Sub-Director of Generation and later Director of Operations ("Official 1") at CFE. LMC, Lindsey, and Lee agreed to pay Enrique Aguilar a thirty percent commission on all of the goods and services LMC sold to CFE, a commission significantly higher than the commission the company had paid its previous sales representative in Mexico. LMC, Lindsey, and Lee knew that all or a portion of that money would be used to pay Official 1 and others at CFE bribes in exchange for CFE awarding contracts to LMC. The payments were made from LMC to Grupo's and Sorvill's bank accounts, and then the money was funneled to Official 1 and others at CFE. Some of the payments were used for the purchase of an expensive Ferrari and a fancy yacht for Official 1, payment of his American Express bills, and a number of other payments benefitting Official 1 and others.
On September 15, 2010, the DOJ filed a seven count Indictment in the Central District of California against Enrique and Angela Aguilar. On October 21, 2010, the DOJ filed an eight count Superseding Indictment in the Central District of California against the Aguilars, LMC, Lindsey, and Lee alleging (1) conspiracy to violate the anti-bribery provisions of the FCPA; (2-6) direct and aiding and abetting violations of the anti-bribery provisions of the FCPA; (7) conspiracy to launder money; (8) direct and aiding and abetting money laundering. LMC, Lindsey, and Lee were charged on counts 1-6. Enrique Aguilar was charged on all counts. Angela Aguilar was charged on counts 7-8.
The case went to trial, and on May 10, 2011, a jury found LMC, Lindsey, and Lee, guilty on all counts and Angela Aguilar guilty as to count 7. At the time, Enrique Aguilar was a fugitive and did not attend the trial. On December 1, 2011, the court granted LMC, Lindsey, and Lee's motion to dismiss the Superseding Indictment and vacate their convictions on the grounds of prosecutorial misconduct. On December 2, 2011, the DOJ appealed the dismissal to the Court of Appeals for the Ninth Circuit, but on May 25, 2012, the DOJ voluntarily dropped its appeal. Although the case against Enrique Aguilar remains technically open, the DOJ decided not to seek Aguilar's extradition. Nevertheless, Enrique Aguilar remains a fugitive.
On June 1, 2012, the district court granted Angela Aguilar's motion to vacate her conviction based on the same grounds of prosecutorial misconduct.
FCPA Matter Name: Lindsey Manufacturing's Involvement in Mexico in 2002
Total $ Bribery Payments: $5,949,079
Total $ Monetary Sanctions (U.S. Sanctions Only): $0
Name: Enrique Faustino Aguilar Noriega
Employers & Positions: Grupo Internacional De Asesores S.A. - Director
FCPA Claims: Anti-Bribery, Conspiracy (18 U.S.C. 371) ; Anti-Bribery, Aiding and Abetting (15 U.S.C. § 78dd-1, 15 U.S.C. § 78dd-2, and/or U.S.C. § 78dd-3) ; Anti-Bribery, Aiding and Abetting/Causing (18 U.S.C. § 2, 15 U.S.C. §§ 78dd-1, 78dd-2, and/or 78dd-3)
Related Claims: Conspiracy to Launder Money (18 U.S.C. §§ 1956, 1957) ; Money Laundering (18 U.S.C. § 1956) ; Aiding and Abetting/Causing Money Laundering (18 U.S.C. § 2; 18 U.S.C. §§ 1956, 1957) ; Criminal Forfeiture (28 U.S.C. § 2461; 18 U.S.C. § 981) ; Criminal Forfeiture (21 U.S.C. § 853) ; Criminal Forfeiture (18 U.S.C. § 982)
Name: Angela Maria Gomez Aguilar
Employers & Positions: Grupo Internacional De Asesores S.A. - Officer and Director
Related Claims: Conspiracy to Launder Money (18 U.S.C. §§ 1956, 1957) ; Money Laundering (18 U.S.C. § 1956) ; Aiding and Abetting/Causing Money Laundering (18 U.S.C. § 2; 18 U.S.C. §§ 1956, 1957) ; Criminal Forfeiture (21 U.S.C. § 853) ; Criminal Forfeiture (18 U.S.C. § 982)
Name: Lindsey Manufacturing Company
Name: Keith E. Lindsey
Employers & Positions: Lindsey Manufacturing Company - President of related defendant company
Name: Steve K. Lee
Employers & Positions: Lindsey Manufacturing Company - Vice President and CFO of related defendant company
Name: Grupo Internacional De Asesores S.A.
Place of Incorporation: Panama
HQ Country: Mexico
Period of Bribery: 2002 - 2009
Total Bribery Payments: $5,949,079
Official 1; Sub-Director of Generation, then Director of Operations; Comision Federal de Electricidad ("CFE")
Official 2; Director of Operations; Comision Federal de Electricidad ("CFE")
Enrique Aguilar ,	Agent/Consultant/Broker
Grupo Internacional De Asesores S.A. ,	Agent/Consultant/Broker
Sorvill International S.A. ,	Agent/Consultant/Broker
Period of Bribery: 2002 – 2009
Official 1;	Sub-Director of Generation, then Director of Operations; Comision Federal de Electricidad ("CFE");
Official 2;	Director of Operations; Comision Federal de Electricidad ("CFE");
Third Party Intermediary: Enrique Aguilar - Agent/Consultant/Broker
Grupo Internacional De Asesores S.A. - Agent/Consultant/Broker
Sorvill International S.A. - Agent/Consultant/Broker
Angela Maria Gomez Aguilar
Enrique Faustino Aguilar Noriega
Disposition: Conviction Vacated
Date of Disposition: 12/01/2011
— Compliance Obligation: No Applicable
Date of Disposition: 06/01/2012
1 Indictment 09/15/2010 Case Initiation
2 Press Release 09/15/2010 Case Initiation
3 Press Release 10/21/2010 Case Initiation
4 Superseding Indictment 10/21/2010 Case Initiation
5 Verdict 05/10/2011 Resolution
6 Judgment 06/03/2011 Resolution
7 Judgment 06/03/2011 Resolution
8 Lee Judgment 11/29/2011 Resolution
9 Lindsey Man. Judgment 11/29/2011 Resolution
10 Notice Of Appeal 12/01/2011 Appeals
11 Order Granting Motion to Dismiss 12/01/2011 Resolution
12 Docket 03/08/2012 Other Proceeding Events
13 Order to Vacate Conviction 06/01/2012 Resolution