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Enforcement Action Dataset

 

Initiation Date:    09/15/2010  Information

Prosecuting Agency:    US Department of Justice

Name of Prosecuting Attorneys:   

  • 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
  • Denis J. McInerney, Chief, Fraud Section, Criminal Division
  • 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

Type of Action:    DOJ Criminal Proceeding

Docket or Case Number:    10-cr-01031

Court:    C.D. California

Origin of the Proceeding:    Unknown

Whistleblower:    Unknown

Case Status:    Ongoing


Summary  Information

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.

Country(ies) involved:    Mexico

Region(s) involved:    Latin America

Sanction to Bribe Ratio:    Not Applicable

Sanction to Revenue Ratio:    Not Applicable

Sanction to Profit Ratio:    Not Applicable

FCPA Matter Name:   Lindsey Manufacturing's Involvement in Mexico in 2002 Information

Number of Related Enforcement Actions (Including This Enforcement Action):    1

Country(ies) involved:    Mexico

Region(s) involved:    Latin America

Total $ Bribery Payments:    $5,949,079

Total $ Revenue Generated from Bribery:    Unknown

Total $ Profit Earned or Expenses Avoided from Bribery:    Unknown

Total $ Monetary Sanctions (U.S. Sanctions Only):    $0

Sanction to Bribe Ratio:    Not Applicable

Sanction to Revenue Ratio:    Not Applicable

Sanction to Profit Ratio:    Not Applicable

Name:    Enrique Faustino Aguilar Noriega

Employers & Positions:    Grupo Internacional De Asesores S.A. - Director

Country:    Mexico, United States

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)

Statutory Basis for FCPA Jurisdiction:    Domestic Concern ; Conspirator ; Aider & Abettor/Cause/Control Person


Name:    Angela Maria Gomez Aguilar

Employers & Positions:    Grupo Internacional De Asesores S.A. - Officer and Director

Country:    Mexico

FCPA Claims:    None

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)

Statutory Basis for FCPA Jurisdiction:    Not Applicable


Name:    Lindsey Manufacturing Company

Entity Type:    Private Company

Place of Incorporation:    United States

HQ Country(ies):    United States

Industry:    Industrial Goods

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:    None

Statutory Basis for FCPA Jurisdiction:    Domestic Concern ; Conspirator ; Aider & Abettor/Cause/Control Person


Name:    Keith E. Lindsey

Employers & Positions:    Lindsey Manufacturing Company - President of related defendant company

Country:    United States

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:    None

Statutory Basis for FCPA Jurisdiction:    Domestic Concern ; Domestic Concern (Officer) ; Domestic Concern (Employee) ; Domestic Concern (Agent) ; Conspirator ; Aider & Abettor/Cause/Control Person


Name:    Steve K. Lee

Employers & Positions:    Lindsey Manufacturing Company - Vice President and CFO of related defendant company

Country:    United States

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:    None

Statutory Basis for FCPA Jurisdiction:    Domestic Concern ; Domestic Concern (Officer) ; Domestic Concern (Employee) ; Domestic Concern (Agent) ; Conspirator ; Aider & Abettor/Cause/Control Person

Name:    Grupo Internacional De Asesores S.A.

Entity Type:    Private Company

Place of Incorporation:    Panama

HQ Country:    Mexico

Industry:    Services

Period of Bribery:   2002 - 2009

Total Bribery Payments:    $5,949,079

Total Revenue Generated from Bribery:    Unknown

Total Profit Earned or Expenses Avoided from Bribery:    Unknown

Country(ies) involved:    Mexico

Region(s) involved:    Latin America

Officials Potentially Influenced (Name; Title; Organization): 

  • 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")

Affiliates, Subsidiaries and Joint Ventures Involved in the Misconduct:    None/Unknown

Third-Party Intermediary:   

  • Enrique Aguilar , Agent/Consultant/Broker
  • Grupo Internacional De Asesores S.A. , Agent/Consultant/Broker
  • Sorvill International S.A. , Agent/Consultant/Broker

Type of Bribe:   Money

Cash, Wire or Check:    Wire Transfer

Purpose of Bribe:    Obtain/retain business

TRANSACTION OVERVIEW
Payments in Mexico

Period of Bribery:   2002 – 2009

Total Bribery Payments:    $5,949,079

Total Revenue Generated from Bribery:    Unknown

Total Profit Earned or Expenses Avoided from Bribery:    Unknown

Country(ies) involved:    Mexico

Region(s) involved:    Latin America

Officials Potentially Influenced (Name; Title; Organization):  

  • 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");

Affiliates, Subsidiaries and Joint Ventures Involved in the Misconduct:    None/Unknown

Third Party Intermediary:    Enrique Aguilar - Agent/Consultant/Broker
Grupo Internacional De Asesores S.A. - Agent/Consultant/Broker
Sorvill International S.A. - Agent/Consultant/Broker

Type of Bribe:   Money

Cash, Wire or Check:    Wire Transfer

Purpose of Bribe:    Obtain/retain business

Misconduct by Subsidiary?  No

M&A Negotiated or Completed During Misconduct, Investigation, or Resolution?     No

Not Applicable

Mitigating Factors Referenced by the Government (Company Defendants):

Defendant Self-Report Cooperation Voluntary Remedial Measures Misconduct Limited to Low Level Individuals Other factors
Lindsey Manufacturing Company          

Mitigating Factors Referenced by the Government (Individual Defendants):

Defendant Cooperation
Angela Maria Gomez Aguilar  
Enrique Faustino Aguilar Noriega  
Keith E. Lindsey  
Steve K. Lee  

Aggravating Factors Referenced by the Government (Company Defendants):

Defendant Insufficient Cooperation Insufficient Remedial Measures
Lindsey Manufacturing Company    

Aggravating Factors Referenced by the Government (Individual Defendants):

Defendant Insufficient Cooperation
Angela Maria Gomez Aguilar  
Enrique Faustino Aguilar Noriega  
Keith E. Lindsey  
Steve K. Lee  

Total Monetary Sanctions for the Action:    $0

Case Status:    Ongoing


Disposition:    Conviction Vacated

Date of Disposition:    12/01/2011

Lindsey Manufacturing Company

—  Total Monetary Sanctions for Defendant:    $0

—  Organizational Probation:    None

—  Compliance Obligation:    No Applicable

—  Reporting Obligation:    N/A


Keith E. Lindsey

—  Total Monetary Sanctions for Defendant:    $0

—  Imprisonment/Incarceration:    None

—  Probation/Supervised Release:    None

—  House Arrest:    None

—  Community Service:    None


Steve K. Lee

—  Total Monetary Sanctions for Defendant:    $0

—  Imprisonment/Incarceration:    None

—  Probation/Supervised Release:    None

—  House Arrest:    None

—  Community Service:    None


Disposition:    Conviction Vacated

Date of Disposition:    06/01/2012

Angela Maria Gomez Aguilar

—  Total Monetary Sanctions for Defendant:    $0

—  Imprisonment/Incarceration:    None

—  Probation/Supervised Release:    None

—  House Arrest:    None

—  Community Service:    None


Disposition:    Fugitive

Date of Disposition:    12/01/2011

Enrique Faustino Aguilar Noriega

—  Total Monetary Sanctions for Defendant:    $0

—  Imprisonment/Incarceration:    None

—  Probation/Supervised Release:    None

—  House Arrest:    None

—  Community Service:    None

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