Bloomberg News

Lindsey Manufacturing Case Appeal Dropped by U.S.

May 25, 2012

Federal prosecutors dropped their appeal of the dismissal of the Foreign Corrupt Practices Act indictment of Lindsey Manufacturing Co., which a judge had found to be be marred by prosecutorial misconduct.

Lawyers for the Justice Department asked in a filing today with the U.S. Court of Appeals in San Francisco for voluntary dismissal of the appeal.

In December, U.S. District Judge Howard Matz in Los Angeles threw out the trial convictions of Azusa, California-based Lindsey Manufacturing, a maker of emergency electricity towers, and two of its executives, who the government had accused of paying bribes to officials at a state-owned Mexican utility so that they would receive contracts.

“By filing today’s dismissal motion, the government has dropped its prosecution of the company and its officers, and will also end its efforts to forfeit about $24 million,” Jan Handzlik, a lawyer for Lindsey Manufacturing, said in an e- mailed statement. “By deciding not to pursue its appeal of Judge Matz’s dismissal order, the government has ended the case.”

The judge had said the government engaged in “flagrant” misconduct, including allowing false testimony before a grand jury, inserting falsehoods in search warrants, improperly reviewing e-mails between a defendant and her lawyer, and making misrepresentations to the court.

Thom Mrozek, a spokesman for the U.S. attorney’s office in Los Angeles, said the government had no comment at this time.

The case is U.S. v. Enrique Faustino Aguilar Noriega, 11-50507, U.S. Court of Appeals for the Ninth Circuit (San Francisco.)

To contact the reporter on this story: Edvard Pettersson in Los Angeles at epettersson@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net


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