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Jefferson Convicted of Conspiracy to Violate the FCPA

William Jefferson, the former nine-term congressman from Louisiana, was found guilty of 11 of 16 corruption charges on Wednesday by a federal jury, including conspiracy to violate the Foreign Corrupt Practices Act. He was acquitted of a substantive charge of violating the FCPA. He was also found guilty of soliciting and taking bribes, depriving citizens of honest services, money laundering and racketeering, and conspiracy to solicit bribes.

The Times Picayune has a chart showing the charges and the verdict here. A copy of the jury's verdict form can be downloaded here.

Jefferson's case started in 2005 when the FBI raided his congressional office. He then became the first elected U.S. official to be charged under the Foreign Corrupt Practices Act. A 16-count indictment alleged among other things that he conspired to bribe the Nigerian vice president, Atiku Abubakar, and later paid or promised to pay him bribes to steer telecommunications contracts to companies controlled by Jefferson's family.

The jury convicted Jefferson on Count 1 of the indictment that charged him with conspiracy to solicit bribes, deprive citizens of honest services, and violate the FCPA. The jury wasn't required to report a separate conclusion about each aspect of the conspiracy. Presumably, though, the panel believed he conspired to do all of the illegal acts alleged, including violate the FCPA. The jury acquitted Jefferson on Count 11 of the indictment -- the substantive FCPA charge.

Jefferson's case is best known for the FBI's discovery in August 2005 of $90,000 cash in the freezer at his Washington home. The money was given to Jefferson by Lori Mody, the government's cooperating witness who didn't testify at his trial. Prosecutors said Jefferson planned to use the cash to bribe Abubakar; Jefferson's lawyers said the cash in the freezer proved the ex-lawmaker didn't use the money as a bribe.

The jury deliberated five days before reaching a decision. Jefferson is now free pending his October 30 sentencing. Assistant U.S. Attorney Mark Lytle told the AP here that Jefferson could face more than 20 years in prison under federal sentencing guidelines.

His alleged co-conspirators were Vernon L. Jackson, a Louisville, Ky., businessman, and Brett M. Pfeffer, a former Jefferson congressional staff member. Jackson was sentenced to 87 months in prison after pleading guilty to conspiracy to commit bribery and paying bribes to a public official. Pfeffer was sentenced to 96 months in prison after pleading guilty to conspiracy to commit bribery and aiding and abetting the solicitation of bribes by a member of Congress.

Jefferson's lawyers are planning to appeal. Jurors will convene again on Thursday to decide whether he must forfeit more than $450,000 in alleged bribes he received.

Read all our posts about William Jefferson here.
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Full post as published by The FCPA Blog on August 05, 2009 (boomark / email).