Business Crimes Hotline

In announcing the operation, Attorney General Eric Holder stated that “[t]hrough this operation we are aggressively targeting those who are selling counterfeit goods for their own personal gain while costing our economy much-needed revenue and jobs,” adding that “[i]ntellectual property crimes harm businesses and consumers, alike, threatening economic opportunity and financial stability, and today we have sent a clear message that the Department will remain ever vigilant in protecting the public's economic welfare and public safety through robust intellectual property enforcement.”

Further, John Morton, ICE Director remarked that “[f]or most, the holidays represent a season of good will and giving, but for these criminals, it's the season to lure in unsuspecting holiday shoppers,” adding that “[m]ore and more Americans are doing their holiday shopping online, and they may not realize that purchasing counterfeit goods results in American jobs lost, American business profits stolen and American consumers receiving substandard products. And the ramifications can be even greater because the illicit profits made from these types of illegal ventures often fuel other kinds of organized crime.”

NEW YORK

Former Siemens Executives and Agents Charged in Alleged Scheme to Bribe Argentine Government Officials

On Dec. 13, 2011, the DOJ announced charges against eight former executives and agents of Siemens AG and its subsidiaries for their participation in an alleged scheme to bribe Argentine government officials in connection with a $1 billion contract to modernize Argentina's national identity cards. The charges against the individuals include conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and conspiracy to commit money laundering and wire fraud, along with substantive wire fraud charges. These announced charges follow from the December 2008 FCPA guilty pleas entered by Siemens AG and its subsidiaries. The Securities and Exchange Commission (SEC) announced parallel civil proceedings.

In announcing the charges, Assistant Attorney General for the Criminal Division, Lanny A. Breuer, stated that “[the] indictment alleges a shocking level of deception and corruption,” adding that “[t]he indictment charges Siemens executives, along with agents and conduits for the company, with committing to pay more than $100 million in bribes to high-level Argentine officials to win a $1 billion contract. Business should be won or lost on the merits of a company's products and services, not the amount of bribes paid to government officials. This indictment reflects our commitment to holding individuals, as well as companies, accountable for violations of the FCPA.”

Preet Bharara, U.S. Attorney for the Southern District of New York, also noted that “[a]s alleged, the defendants in this case bribed Argentine government officials in two successive administrations and paid off countless others in a successful effort to secure a billion dollar contract,” adding that “[w]hen the project was terminated, they even sought to recover the profits they would have reaped from a contract that was awarded to them illegitimately in the first place. Bribery corrupts economic markets and creates an unfair playing field for law-abiding companies. It is critical that we hold individuals as well as corporations accountable for such corruption as we are doing today.”

DISTRICT OF COLUMBIA

Cyber Monday Crackdown on Counterfeit Goods
Leads to Court-Ordered Shutdown of 150 Websites

On Nov. 28, 2011, the Department of Justice (DOJ) and U.S. Immigrations and Customs Enforcement (ICE) conducted its second Cyber Monday seizure against websites accused of illegally selling and distributing copyrighted works and counterfeit goods. This year's operation, the eighth such action as part of Operation In Our Sites, resulted in seizure orders against 150 domain names. The seizure orders were obtained from federal magistrate judges, after federal law enforcement agents confirmed with trademark holders that items purchased by the agents were counterfeit products or otherwise illegal. The first Cyber Monday operation in November 2010 resulted in the seizure of 82 websites.

In announcing the operation, Attorney General Eric Holder stated that “[t]hrough this operation we are aggressively targeting those who are selling counterfeit goods for their own personal gain while costing our economy much-needed revenue and jobs,” adding that “[i]ntellectual property crimes harm businesses and consumers, alike, threatening economic opportunity and financial stability, and today we have sent a clear message that the Department will remain ever vigilant in protecting the public's economic welfare and public safety through robust intellectual property enforcement.”

Further, John Morton, ICE Director remarked that “[f]or most, the holidays represent a season of good will and giving, but for these criminals, it's the season to lure in unsuspecting holiday shoppers,” adding that “[m]ore and more Americans are doing their holiday shopping online, and they may not realize that purchasing counterfeit goods results in American jobs lost, American business profits stolen and American consumers receiving substandard products. And the ramifications can be even greater because the illicit profits made from these types of illegal ventures often fuel other kinds of organized crime.”

NEW YORK

Former Siemens Executives and Agents Charged in Alleged Scheme to Bribe Argentine Government Officials

On Dec. 13, 2011, the DOJ announced charges against eight former executives and agents of Siemens AG and its subsidiaries for their participation in an alleged scheme to bribe Argentine government officials in connection with a $1 billion contract to modernize Argentina's national identity cards. The charges against the individuals include conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and conspiracy to commit money laundering and wire fraud, along with substantive wire fraud charges. These announced charges follow from the December 2008 FCPA guilty pleas entered by Siemens AG and its subsidiaries. The Securities and Exchange Commission (SEC) announced parallel civil proceedings.

In announcing the charges, Assistant Attorney General for the Criminal Division, Lanny A. Breuer, stated that “[the] indictment alleges a shocking level of deception and corruption,” adding that “[t]he indictment charges Siemens executives, along with agents and conduits for the company, with committing to pay more than $100 million in bribes to high-level Argentine officials to win a $1 billion contract. Business should be won or lost on the merits of a company's products and services, not the amount of bribes paid to government officials. This indictment reflects our commitment to holding individuals, as well as companies, accountable for violations of the FCPA.”

Preet Bharara, U.S. Attorney for the Southern District of New York, also noted that “[a]s alleged, the defendants in this case bribed Argentine government officials in two successive administrations and paid off countless others in a successful effort to secure a billion dollar contract,” adding that “[w]hen the project was terminated, they even sought to recover the profits they would have reaped from a contract that was awarded to them illegitimately in the first place. Bribery corrupts economic markets and creates an unfair playing field for law-abiding companies. It is critical that we hold individuals as well as corporations accountable for such corruption as we are doing today.”