Benlate Case Heats Up Over Document Accusations | Daily Business Review

DuPont surrendered more than 37,000 documents to comply with a court order requiring the maker of the shelved fungicide Benlate to produce documents in a lawsuit dating back to 1992, but attorneys for growers claim that 67,000 more are still needed.

Five Miami-Dade growers suing DuPont claim some of the newly disclosed documents reveal a long-running cover-up — relevant documents were misfiled or mislabeled in a discovery fraud.

Miami-Dade Circuit Judge Amy Steele Donner signed a show cause order March 17 demanding DuPont immediately produce all documents it had previously deemed unrelated to the Benlate case before her.

She said she would consider striking DuPont’s pleadings if the company failed to comply, which would set up a trial on damages only.

In the following weeks, DuPont’s attorneys handed over thousands of documents.

Miami attorney Robert J. Ratiner, who represents the five growers claiming crop losses from Benlate use, presented several of those documents in court Friday, showing some were directly related to the case.

“Judge, this was an orchestrated design of deceit from the beginning,” he said.

DuPont attorneys denied allegations of discovery fraud.

Donner told DuPont attorneys that they had more than enough time to produce records.

Company attorney Bert Ocariz of Shook Hardy & Bacon in Miami said the judge referred to only a certain class of documents, which were produced. But the judge said her order clearly intended for the production of everything.

“I don’t think you should have narrowly construed my order,” she said. “That would seem you are playing games with the court.”

Ocariz said that was not the case.

Donner did not make a ruling by deadline, saying late Friday that the hearing would continue on June 11.

via Law.com – Benlate Case Heats Up Over Document Accusations.

DOJs Top Foreign-Bribery Prosecutor Heads to Paul Weiss | Law.com

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The Justice Departments top foreign-bribery prosecutor, Mark Mendelsohn, is leaving the department to join Paul, Weiss, Rifkind, Wharton & Garrison in Washington, D.C.

Mendelsohns jump to private practice was expected and has been talked about for months as the Justice Departments Fraud Section has undergone personnel changes. His last day at Justice will be Friday.

Back in November, Assistant Attorney General Lanny Breuer of the Criminal Division praised Mendelsohn, a deputy chief in the Fraud Section who oversees Foreign Corrupt Practices Act cases, during a speech at the 22nd Annual National Forum on the Foreign Corrupt Practices Act. “Mark has been an exceptional public servant and a visionary steward of the FCPA program,” Breuer said.

FCPA enforcement has ramped up significantly in the past couple of years, especially when it comes to the prosecution of individuals. Breuer has called 2009 the most “dynamic” year of FCPA enforcement ever with a record number of trials, individuals charged and corporate fines.

Mendelsohn, who has been a federal prosecutor for 12 years, is a former senior counsel in the DOJ Computer Crime and Intellectual Property Section. Prior to joining the computer crime section, Mendelsohn was an Assistant U.S. Attorney in New York, where he specialized in the prosecution of white-collar crime, including FCPA cases. He clerked for Judge Denny Chin of the U.S. District Court for the Southern District of New York, who has been nominated for a federal appeals court slot.

Chuck Duross, an assistant chief in the Fraud Section since October 2008, has been named acting deputy chief for FCPA enforcement. The Justice Department has posted a vacancy announcement seeking a permanent replacement.

Duross joined the Fraud Section in 2006 and has focused on FCPA enforcement. He was the Fraud Section trial attorney on the prosecution of former Rep. William Jefferson, who was convicted last August in a bribery case in Alexandria, Va.

As an Assistant U.S. Attorney in Miami, Duross investigated and prosecuted mail fraud, money laundering and securities fraud. He became a deputy chief in the Major Crimes Section of the U.S. Attorneys Office for the Southern District of Florida.

Alexandra Wrage, an expert in corporate compliance with FCPA, called Mendelsohn “the face” of FCPA in the private sector. Wrage and Mendelsohn are participating on an FCPA-themed panel later this week at an American Bar Association International Law Section meeting in New York.

via Law.com – DOJs Top Foreign-Bribery Prosecutor Heads to Paul Weiss.

Computer Hacker Albert Gonzalez Sentenced to 20 Years | Law.com

Computer hacking mastermind Albert Gonzalez was sentenced in Boston federal court on Thursday to 20 years in prison for two cases that charged him with stealing 40 million debit and credit card numbers from national retailers and a restaurant chain.

The 28-year-old Gonzalez, a former Secret Service informant from Miami, received two concurrent 20-year sentences, one for each of the two cases, plus three years of supervised release without any access to computers and a total $25,000 fine.

Judge Patti Saris of the District of Massachusetts set a hearing on restitution for June 25 to give the government time to find individuals, not just corporations, who lost money, and sort out the various companies’ losses.

In one case, which originated in the District of Massachusetts and involved hacking of retail company networks, Gonzalez was charged with damage to computer systems, wire fraud, access device fraud, aggravated identity theft and conspiracy. The sophisticated scheme targeted national retailers, including Barnes & Noble Inc., BJ’s Wholesale Club Inc., Boston Market Corp., DSW Inc., OfficeMax Inc., The Sports Authority Inc. and discount retailer The TJX Cos. Inc., which owns T.J.Maxx and other stores. Gonzalez pleaded guilty on Sept. 11, 2009, to 20 counts of conspiracy, computer fraud, wire fraud, access device fraud and aggravated identity theft.

Early in the hearing on Thursday, Saris noted that Gonzalez could have received a life sentence for the crimes he was charged with, but the government and Gonzalez agreed to a 15- to 25-year sentencing range through a binding plea agreement.

via Law.com – Computer Hacker Albert Gonzalez Sentenced to 20 Years.

U.S. charges 22 with bribery involving arms sales | Reuters

U.S. authorities accused 22 people, including an executive for Smith & Wesson Holding Corp (SWHC.O), with violating federal bribery laws involving the sale of various arms, the U.S. Justice Department said on Tuesday.

The indictments charged the individuals, including Smith & Wesson Vice President for Sales Amaro Goncalves, with violating the Foreign Corrupt Practices Act and conspiracy to commit money laundering involving the sale of items including guns and body armor.

Also charged was the chief executive of Protective Products of America Inc (PPA.TO), R. Patrick Caldwell, who previously worked for the U.S. Secret Service for 27 years and was the special agent in charge of the division for the vice president’s protection.

That company filed for bankruptcy protection last week and sought approval to be acquired by an affiliate of the private investment firm Sun Capital Partners Inc.

The indictments, filed in December, were unsealed by a U.S. judge on Tuesday and follow undercover operations last year. The individuals were arrested on Monday in Las Vegas and Miami.

via UPDATE 1-U.S. charges 22 with bribery involving arms sales | Reuters.

Video: An Update on the U.S. Government’s Response to the Haiti Earthquake | The White House

Earlier this evening, the White House released an overview of key facts and examples of government actions in response to the earthquake in Haiti.  You can keep up to date with the latest news and resources on the response at the White House’s dedicated webpage.  Before this summary of what your government is doing, a quick reminder from former Presidents Bush and Clinton about how you can help:

Contribute online through ClintonBushHaitiFund.org.
Text “QUAKE” to 20222 to charge a  $10 donation to the Clinton Bush Haiti Fund (the donation will be added to your cell phone bill).
Find more ways to help through the Center for International Disaster Information.

    All numbers below are accurate as of noon Sunday, January 17, 2010

    AIRPORTS AND AIRSPACE

    The airfield is open for 24/7 operations and has a 100-aircraft per day capacity, this is an increase from yesterday’s 60 aircraft per day capacity. The airport has received more than 600 short tons of supplies. USAF air traffic control and airfield management personnel continue to manage air operations at the airport with approval of the Government of Haiti. There are 30 military helicopters providing relief to the people of Haiti. These helicopters are operating out of nine landing zones, including five drop-off points.

    SAFETY

    Approximately 5,800 military personnel on the ground or afloat.  Approximately 7,500 additional military personnel are expected to arrive by 1/18. More than 1,000 personnel from the 82nd Airborne Division arrived in Haiti on 1/16.

    HEALTH

    More than 250 HHS medical personnel have arrived in Haiti.  2 planeloads of medicine, medical equipment and supplies from HHS have arrived in Haiti with a third expected to arrive today. 3,840 hygiene kits taken from USAID stockpiles in Miami have arrived. The USNS Comfort is currently underway and expected to arrive on 1/20 with 600 medical personal on board.

    EVACUATION AND RESCUES

    As of 0900 a total of 1,760 American citizens have been airlifted out of Haiti. USAID/DART reported that a U.S. Urban Search and Rescue (USAR) team had rescued an additional three individuals at the Caribbean Market. As of 0900, US USAR teams have rescued 26 individuals.  There are currently six US USAR teams operating in Haiti along with 21 international USAR teams from around the world.  US teams are based out of Fairfax VA, Los Angeles CA, Miami FL (two teams), New York NY and Virginia Beach VA. Each USAR team includes approximately 70 team members.

    FOOD AND WATER

    U.S. military aircraft have airlifted 130,000 humanitarian daily rations and more than 70,000 bottles of water to Port-au-Prince. Three water purification units are operational and can supply 180,000 liters per day. USS Carl Vinson continues to provide potable water production. U.S. military aircraft will continue to support the delivery of an additional 600,000 daily rations over the next several days. Six additional water purification units are scheduled to arrive in the coming days from USAID stockpiles in Dubai. Each unit provides 1000,000 liters of safe drinking water serving 10,000 people per day.  12,000 water containers have arrived from Miami. Yesterday, the U.N. World Food Program distributed high-energy biscuits to a total of 50,000 people. The World Food Program Port-au-Prince metropolitan areas schools feeding program is now serving hot meals to 50,000 affected people.

    via An Update on the U.S. Government’s Response to the Haiti Earthquake | The White House.

    PBS&J discloses internal FCPA investigation

    PBS&J, a large engineering and architecture firm for governments, is investigating possible violations of the Foreign Corrupt Practices Act, the company revealed in a regulatory filing.

    The company's Securities and Exchange Commission filing doesn't go into detail about what may have happened at PBS&J's international subsidiary, and a company spokeswoman, C.L. Conroy, wouldn't elaborate.

    However, the Foreign Corrupt Practices Act generally prohibits U.S.-based companies from making improper payments to foreign officials, usually through bribes, said Mike Seigel, a law professor at the University of Florida and former federal prosecutor.

    PBS&J does engineering and construction management work for government agencies, often departments of transportation. It had been based in Miami, but moved to Tampa a few years ago. The firm has 80 offices and 3,900 employees worldwide.

    According to its short SEC notice, which it filed Dec. 30, the company has been unable to file its annual financial report for the year ended Sept. 30 because of an internal investigation. The company's audit committee is investigating whether any laws were broken, including the FCPA, in connection with overseas projects, PBS&J's filing says.

    The company reported its internal investigation to the SEC, the company said. Seigel, the UF law professor, said the SEC typically is more lenient toward companies that self-report legal violations.

    This is just the latest legal problem for PBS&J. A former chief financial officer and two other PBS&J employees were found to have misappropriated more than $36 million from the company from the late 1990s until 2005. The embezzling scheme caused PBS&J to erroneously calculate its overhead costs and to overcharge its government clients.

    via PBS&J discloses internal investigation.

    Will Bribery Probe Hit IDT?

    Howard Jonas troubled telecommunications company IDT focuses on everything from oil shale to prepaid calling cards. But this week IDT has been paying particular attention to events in a Miami, Florida courthouse.

    On Monday Jean Rene Duperval, former director of international relations at Haitis state-owned telecommunications monopoly, made an appearance there after the Haitian national police arrested him over the weekend and shipped him to the U.S. The U.S. government charged Duperval with several counts of money laundering related to a bribery probe of telecommunications deals done in Jean-Bertrand Aristides Haiti.

    The feds accuse Duperval of participating in a scheme that saw a Miami telecom outfit pay more than $800,000 to shell companies used to pay bribes to Haitian government officials connected to Haiti Teleco. In return, the U.S. government alleges the Miami firm got preferred telecommunications rates, reducing the number of minutes for which payment was owed, and a variety of other credits. Duperval was indicted along with two executives of the Miami firm, who were charged with conspiracy to violate the Foreign Corrupt Practices Act.

    Why does IDT ? Duperval signed a carrier service agreement with the Newark, N.J.-based company while working as director of international relations at Telecommunications DHaiti, or Haiti Teleco. That agreement was filed by IDT with the Federal Communications Commission in 2007, and the FCC later slapped IDT with a $1.3 million notice for having earlier repeatedly failed to file the contract. The FCC and IDT entered into a consent decree last year on the issue that saw IDT pay $400,000.

    [continued] Will Bribery Probe Hit IDT?.