The FCPA Blog

Sheldon Reiss, MD, an internist and pulmonologist with Cedars-Sinai Health Associates, has been ordered to prodice Gerald Green's medical records.A federal judge last week vacated the June 3 sentencing date for Gerald Green and his wife Patricia. He also ordered production of Mr. Green's medical records from his Hollywood doctor, continued the status conference until July 1, and failed to set a new date for sentencing, raising the possibility that the Greens may never spend time behind bars.

Mr. Green, 78, and his wife Patricia, 53, were first scheduled to be sentenced by Judge George H. Wu in Los Angeles in December 2009. The Hollywood movie producers were convicted last year of paying $1.8 million in bribes to a Thai official in exchange for contracts worth about $13.5 million to produce the Bangkok Film Festival.

Sentencing has now been delayed five times. This was the first time the judge continued the case without setting a new date for sentencing.

At last week's status conference, Judge Wu ordered Gerald Green's Wilshire Boulevard doctor, Sheldon Reiss, a pulmonary specialist, to turn over Mr. Green's medical records. Mr. Green has emphysema and appears in court with an oxygen bottle to help him breathe. A copy of the court's order can be downloaded here.

At a series of post-trial hearings, the judge has asked the parties to talk about penalties handed out in similar cases. He's also heard testimony about Mr. Green's medical condition, the legal merits of the Greens' convictions, and arguments for and against their going to jail.

An LA jury in September 2009 found the Greens guilty of conspiring to violate the Foreign Corrupt Practices Act, nine counts of violating the FCPA, and seven counts of money laundering. Patricia Green was also found guilty of two counts of falsely subscribing to a U.S. income tax return. After arguing that the federal guidelines call for sentences of around 20 in prison for each of the Greens, prosecutors are now apparently asking for 10-year jail terms. 

Why would Judge Wu hesitate to sentence the Greens? Mr. Green's age and health are both concerns. Is it also possible the judge wasn't happy with the prosecution in the first place? It was by any measure aggressive and, to some, over the top, with the piling on of multiple bribery counts, money-laundering and tax charges. Did the judge think the government somehow unfairly ambushed the Greens? Is he resentful about the DOJ's handling of the case, which must have sent shivers down the spine of the Hollywood movie industry? We don't know the answers.

But it's clear the judge is in no hurry to send them to jail. Beyond that, he's treating Mr. and Mrs. Green as one defendant even though he could deal with them separately. If the judge believes Gerald Green's age and medical condition prevent his imprisonment, what about Mrs. Green and her sentence? Convicted couples are often handled separately. Why not the Greens? Only the judge knows and for now he's not talking.

Stay tuned for more from this sentencing cliffhanger.

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Here's the docket entry for May 27, 2010 in US v. Green et al, United States District Court, Central District of California (Western Division - Los Angeles), Case #: 2:08-cr-00059-GW-1:

MINUTES OF Status Conference 05/27/2010 held off the record before Judge George H. Wu as to Defendants Gerald Green and Patricia Green. The Court orders counsel for Mr. Green to forward the medical records to the Government by June 3, 2010. The Governments response will be due by June 17, 2010. Defendant Gerald Greens response will be due on June 24, 2010. The Status Conference is continued to July 1, 2010 at 9:30 a.m. The Sentencing hearing as to Defendants Gerald Green and Patricia Green, presently set for June 3, 2010, is vacated and taken off calendar. Court Reporter: n/a. (rs) (Entered: 06/01/2010)

Sentencing for Gerald and Patricia Green was delayed for the fourth time Thursday and rescheduled to June 3rd. The Hollywood producers were convicted last year of paying $1.8 million in bribes to a Thai official in exchange for contracts worth about $13.5 million to produce the Bangkok Film Festival.

Gerald Green, 78, and his wife Patricia, 53, were first scheduled to be sentenced by Judge George H. Wu in federal court in Los Angeles on December 17, 2009. The government and the Greens agreed to wait until January 21, 2010. The judge then reset the hearing to April 1 and then April 29, after asking the parties for information about sentences in similar cases.

Yesterday, according to the Los Angeles Independent, the judge asked lawyers for both sides for more details about Gerald Green's emphysema and what effect federal prison might have on him. The judge said there hadn't been "much in the way of medical evidence'' to support defense arguments that prison would be devastating to Mr. Green's condition.

An LA jury in September 2009 found the Greens guilty of conspiring to violate the Foreign Corrupt Practices Act, nine counts of violating the FCPA, and seven counts of money laundering. Patricia Green was also found guilty of two counts of falsely subscribing to a U.S. income tax return. The conspiracy and FCPA charges are each punishable by up to five years in prison, the money laundering counts by 20 years in prison, and the tax charges against Patricia Green each carry a maximum penalty of three years in prison. Prosecutors apparently are asking for sentences of 10 years for each of the Greens.

The Independent said Patricia Greens' attorney, Marilyn E. Bednarski, is arguing for no jail time. "These people have been destroyed,'' she said. Assistant U.S. Attorney Jonathan E. Lopez argued that the Greens put themselves in the situation and had  shown "no remorse or acceptance of responsibility.''

Assistant U.S. Attorney Bruce H. Searby said a stipulated forfeiture agreement for $1.8 million had been reached between the Greens and the U.S. government.

In January, the Thai official named in the Greens' prosecution was indicted with her daughter in Los Angleles. Juthamas Siriwan, the ex-governor of the Tourism Authority of Thailand, and Jittisopa Siriwan, were charged with one count of conspiracy, seven counts of transporting funds to promote unlawful activity (bribery), and one count of aiding and abetting. If convicted, Siriwan and her daughter each face up to 20 years in prison. Siriwan has said she is innocent.

The SEC said today that it brought a civil enforcement action against four former employees of Dimon, Inc., now Alliance One International, Inc. It charged them with violating the anti-bribery provisions of the Foreign Corrupt Practices Act and aiding and abetting violations. The defendants agreed to settle the charges.

From 1996 through 2004, Dimon's subsidiary in Kyrgyzstan paid more than $3 million in bribes to various government officials to purchase Kyrgyz tobacco. Defendant Bobby J. Elkin, Jr., 49, a former country manager for Kyrgyzstan, arranged the bribes through a bank account held under his name called the Special Account.

Another defendant, Baxter J. Myers, 65, a former regional financial director, authorized transfers from a Dimon subsidiary's bank account to the Special Account, and defendant Thomas G. Reynolds, 54, a former corporate controller, recorded the payments made from the Special Account in Dimon's books.

Dimon also paid bribes in a scenario familiar to many western companies operating in high-risk countries. Its office, according to the SEC's civil complaint, was subjected to continuous audits by Kyrgyz tax officials. Some Dimon personnel devoted most of their work hours to answering questions from the tax inspectors. As soon as one audit finished, another would begin. The inspectors were never satisfied. Because Dimon once "failed to submit two reports to the tax office," they imposed a  fine of about $171,741 and threatened to seize its bank accounts and tobacco inventory. The tax inspectors later offered to reduce the penalties in exchange for Dimon's cash payment.

Separately, from 2000 to 2003, Dimon paid bribes of about $542,590 to officials of the government-controlled Thailand Tobacco Monopoly in exchange for about $9.4 million in sales contracts. Defendant Tommy L. Williams, 55, a former sales executive, directed tobacco sales from Brazil and Malawi to the Thailand Tobacco Monopoly through Dimon's agent in Thailand. He authorized the payment of bribes to government officials of the Thailand Tobacco Monopoly. These bribes were characterized as commissions paid to Dimon's agent in Thailand.

Defendants Myers and Reynolds  agreed to pay civil penalties of $40,000 each. All four defendants also consented to the entry of final judgments permanently enjoining them from violating the anti-bribery provisions of the FCPA (Section 30A of the Securities Exchange Act of 1934) and aiding and abetting violations of Sections 13(b)(2)(A) and 13(b)(2)(B). 

Alliance One International, Inc. was formed in May 2005 -- after the offenses described in the SEC's complaint -- with the merger of Dimon and Standard Commercial Corporation. The company trades on the NYSE under the symbol AOI.

View the SEC's April 29, 2010 Litigation Release No. 21509 in Securities and Exchange Commission v. Bobby J. Elkin, Jr., Baxter J. Myers, Thomas G. Reynolds, and Tommy L. Williams, Civil Action No. 1:10-cv-00661 (RMU) (D.D.C.) (filed April 28, 2010) here.

Download a copy of the SEC civil complaint here.

Gerald and Patricia Green in happier days.Sentencing for Gerald and Patricia Green was delayed for the third time Thursday and rescheduled to April 29. The Hollywood producers were convicted last year of paying $1.8 million in bribes to a Thai official in exchange for contracts to produce the Bangkok Film Festival.

Gerald Green, 78, and his wife Patricia, 53, were first scheduled to be sentenced by Judge George H. Wu in federal court in Los Angeles on December 17, 2009. The government and the Greens agreed to wait until January 21, 2010. The judge then reset the hearing to April 1 after asking the parties for information about sentences in similar cases.

An LA jury in September 2009 found the Greens guilty of conspiring to violate the Foreign Corrupt Practices Act, nine counts of violating the FCPA, and seven counts of money laundering. Patricia Green was also found guilty of two counts of falsely subscribing to a U.S. income tax return. The conspiracy and FCPA charges are each punishable by up to five years in prison, the money laundering counts by 20 years in prison, and the tax charges against Patricia Green each carry a maximum penalty of three years in prison.

The government has asked for a sentence of about 20 to 25 years for Gerald Green. In an earlier court filing, it said:

The [pre-sentence report] calculates defendant Gerald Green’s Total Offense Level as 38, his Criminal History Category as I, and his sentencing range as 235-293 months. With the inclusion of the additional role and obstruction enhancements recommended above, his Total Offense Level would be 44 and his sentencing range would be life in prison.

The Justice Department said evidence presented during their 2½-week trial showed that beginning in 2002 and continuing into 2007, the Greens conspired with others to bribe the former governor of the Tourism Authority of Thailand with $1.8 million. The payments were used to land $13.5 million in film festival contracts and deals for development of a Thai Privilege Card, a website, book, video, calendars, and public relations services. The Greens, prosecutors said, used different business entities, some with dummy addresses and telephone numbers, to hide how much they were receiving under the contracts.

We've said before that Judge Wu may be reluctant to sentence the Greens to long prison terms. After yesterday's hearing, a report by Dominic Patten of The Wrap said:

Watching the 90-minute session today in Judge Wu's in LA's downtown federal courthouse, it would be easy to think this was an April Fool's joke gone off the rails, or that an actual trial and judgment had never happened. Both U.S. attorneys and defense lawyers seemed to re-argue the entire case, point-by-point, on issues of motivation, damages, medical condition, financial loss and gain, and sentencing guideline calculations.

Somberly dressed in black, both Gerald and Patricia Green say silently throughout the proceedings. The 78-year-old Gerald Green, who had an oxygen tune connected to his nose, only spoke once, to confer with his wife and his attorney Jerome Mooney about upcoming court dates. Because of the charges they face and their advanced age, they face the possibility of life in prison. 

In January, the Thai official named in the Greens' prosecution was indicted with her daughter in Los Angleles. Juthamas Siriwan, the ex-governor of the Tourism Authority of Thailand, and Jittisopa Siriwan, were charged with one count of conspiracy, seven counts of transporting funds to promote unlawful activity (bribery), and one count of aiding and abetting. If convicted, Siriwan and her daughter each face up to 20 years in prison. Siriwan has said she is innocent.

A copy of the indictment in U.S. v. Juthamas Siriwan in the U.S. District Court for the Central District of California (Case No.: CR 09 00081) can be downloaded here.

Download a copy of the government's December 14, 2009 response and objections to the pre-sentence report for Gerald Green here.

Judge Wu: He wasn't ready this week to sentence Hollywood producers Gerald and Patricia Green. They face as much as 20 years or more in prison for violating the Foreign Corrupt Practices Act and other U.S. laws.Sentencing for Gerald Green and his wife Patricia, the Hollywood movie producers convicted last year of paying kickbacks to a Thai official in exchange for contracts, has been postponed until March 11.

The Greens were scheduled to learn their sentences at a hearing in federal court in Los Angeles on Thursday. Judge George Wu instead asked for more information from the parties. He said he wants Gerald Green's lawyers to provide a summarized medical report and he asked prosecutors for an official statement from the Thai government declaring that Thailand was harmed by the Greens’ bribery.

In a signal that he may be uncomfortable with the long sentences requested by the government under the federal guidelines, he also asked both sides for research showing prison terms from similar bribery cases.

A report of the hearing appears in the Wrap here.

Gerald Green, 78, appeared in court on Thursday "with a small oxygen tank slung over his shoulder," the report said. His lawyers argue that he needs constant medical care. In their sentencing memo they said:

Not only does Mr. Green suffer from extremely severe emphysema, his condition is progressive. He has already lost so much lung function that he has none left to spare. At his current capacity every breath is a struggle. At the core of the issue is that ANY lung function lost due to any delay or interruption in his regime of treatment is permanent. This was clearly illustrated during the early period of this case when Mr. Green could not utilize steam therapy because of the monitoring device. During that period of time there was a decrease in lung function.

During Thursday's hearing, the Wrap said Assistant U.S. Attorney Bruce Searby "was visibly perplexed" by Judge Wu's requests:

“Don’t you like the give and take of argument?” Wu asked, smiling at Lopez. “Don’t you get this in Washington D.C.?”

All Lopez could say to Wu’s concern was, “It shouldn’t be that you can go out and bribe someone just as long as the host country profits from the bribe.”

Gerald Green faces 20 to 25 years under the federal sentencing guidelines; the government has asked that he be jailed for life. His wife Patricia, 55, could be sentenced to between 19 and 24 years.

A jury convicted them in September of conspiring to violate the FCPA and money laundering laws, nine counts of violating the FCPA and seven counts of money laundering. Patricia Green was found guilty of two counts of subscribing to a U.S. income tax return knowing it contained false statements.

The Thai official named in the Greens' prosecution has been indicted with her daughter. The indictment unsealed Tuesday in Los Angeles charges Juthamas Siriwan, the ex-governor of the Tourism Authority of Thailand, and her daughter, Jittisopa Siriwan, with one count of conspiracy, seven counts of transporting funds to promote unlawful activity (bribery), and one count of aiding and abetting. If convicted, Siriwan and her daughter each face up to 20 years in prison. Siriwan has said she is innocent.

A copy of the indictment in U.S. v. Juthamas Siriwan in the U.S. District Court for the Central District of California (Case No.: CR 09 00081) can be downloaded here.