Lights, Camera ... Kickback: First FCPA Case Brought Against Film Producers

In the first Foreign Corrupt Practices Act (FCPA) case to be brought by the US Department of Justice (DoJ) against film producers, a jury has convicted two Hollywood producers, Gerald and Patricia Green, for paying, between 2002 and 2007, more than $1.8 million in bribes to the then Tourism Authority of Thailand, Governor Juthamas Siriwan, so they could manage the Bangkok Film Festival and secure two other contracts related to tourism valued at more than $13.5 million.

The Greens, a married couple, were convicted of conspiracy to violate the FCPA, eight counts of violating the FCPA and seven counts of money laundering. Patricia Green was found guilty on two counts of falsifying US tax returns related to the bribes. They could both face imprisonment of more than ten years when sentenced in December 2009.

As with any first conviction in a particular industry, where the enforcement authorities learn the ins and outs of the industry and know where the FCPA risks are, it is likely this case will lead to further investigations and government scrutiny of business conducted by the film industry overseas. While this case involved the conviction of two individuals, the DoJ is just as likely to investigate parent and subsidiary companies that may be involved with bribery in the film industry.

Read the US Department of Justice press release: http://www.usdoj.gov/criminal/pr/press_releases/2009/09/09-14-09green-guily.pdf 

Sam Eastwood is a litigation partner and Head of the Business Ethics and Anti-Corruption Group and Chris Campbell-Holt is a researcher at Norton Rose LLP, http://www.nortonrose.com/ . Chris was a member of the Secretariat of the Woolf Committee that was appointed by BAE Systems’ Board to report on BAE’s ethical policies and processes. Sam can be contacted on +44(0)20 7283 6000 or by email: sam.eastwood@nortonrose.com .

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