By Joel Schectman
A federal judge in U.S. District Court in Camden, N.J., on
Tuesday sentenced former PetroTiger Chief Executive Joseph Sigelman
to probation with no jail time, after the defense accepted an
unexpected midtrial plea deal.
The surprise plea agreement, negotiated over the weekend,
represented a surprising turn of events in the closely watched
trial that was just entering its third week. On Monday, Mr.
Sigelman admitted to authorizing payments to a Colombian employee
of state-owned Ecopetrol SA in an effort to secure an oil-services
contract worth more than $39 million.
Mr. Sigelman pleaded guilty to conspiring to violate the Foreign
Corrupt Practices Act, which makes it a crime to bribe overseas
officials to win business. The government dropped its other charges
including money laundering and kickback violations.
U.S. District Judge Joseph Irenas sentenced Mr. Sigelman to
three years' probation and to pay $339,000 in fines and restitution
to PetroTiger.
The felony conviction without jail time represented a lukewarm
victory for the U.S. Justice Department. Prosecutors faced an
unexpected setback at the start of the trial after a key witness,
former PetroTiger General Counsel Gregory Weisman admitted on the
stand that he gave false testimony. Federal prosecutors charged Mr.
Sigelman with FCPA violations, money laundering, and wire
fraud--charges that could have resulted in more than a
20-year-sentence.
In recent years, the government has racked up a series of record
out-of-court settlements with companies accused of foreign bribery.
But the Sigelman case was seen as a test of the government's
ability to win overseas bribery cases before a jury. The trial was
the first time in years the Justice Department had brought FCPA
charges to trial, after a series of setbacks in earlier overseas
bribery cases.
Write to Joel Schectman at joel.schectman@dowjones.com
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