Case 8:09-cr-00077-JVS Document 358 Filed 05/05/11 Page 1 of 6 Page ID #:6191

1 NICOLA T. HANNA, SBN 130694, nhanna@gibsondunn.com

GIBSON, DUNN & CRUTCHER LLP
2 3161 Michelson Drive, Suite 1200
Irvine, CA 92612
3 Telephone: (949) 451-3800
Facsimile: (949) 451-4220
4 Attorneys for Defendant STUART CARSON
5 KIMBERLY A. DUNNE, SBN 142721, kdunne@sidley.com
SIDLEY AUSTIN LLP
6 555 W. Fifth Street, Suite 4000
Los Angeles, CA 90013-1010
7 Telephone: (213) 896-6000
Facsimile: (213) 896-6600
8 Attorneys for Defendant HONG CARSON
9 THOMAS H. BIENERT, JR., SBN 135311, tbienert@bmkattorneys.com
BIENERT, MILLER & KATZMAN, PLC
10 903 Calle Amanecer, Suite 350
San Clemente, CA 92673
11 Telephone: (949) 369-3700
Facsimile: (949) 369-3701
12 Attorneys for Defendant PAUL COSGROVE
13 DAVID W. WIECHERT, SBN 94607, dwiechert@aol.com
LAW OFFICES OF DAVID W. WIECHERT
14 115 Avenida Miramar
San Clemente, CA 92672
15 Telephone: (949) 361-2822
Facsimile: (949) 496-6753
16 Attorneys for Defendant DAVID EDMONDS
17 UNITED STATES DISTRICT COURT
18 CENTRAL DISTRICT OF CALIFORNIA
19 SOUTHERN DIVISION
20
UNITED STATES OF AMERICA, CASE NO. SA CR 09-00077-JVS
21
Plaintiff, SUPPLEMENT TO DEFENDANTS’
22 REPLY IN SUPPORT OF AMENDED
MOTION TO DISMISS COUNTS
23 v. ONE THROUGH TEN OF THE
INDICTMENT
24 STUART CARSON, et al.,
25 Defendants. Hearing
Date: May 9, 2011
26 Time: 3:00 p.m.
27 Courtroom: 10C
Trial Date: October 4, 2011
28 The Honorable James V. Selna
 Case 8:09-cr-00077-JVS Document 358 Filed 05/05/11 Page 2 of 6 Page ID #:6192

1 On May 2, 2011, Defendants filed their Reply In Support of Amended Motion to

2 Dismiss Counts One Through Ten Of The Indictment. See Docket No. 354. Two days
3 later, on May 4, 2011, an article appeared on the website, www.mainjustice.com,
4 entitled “DOJ Official Warns Against Challenging Foreign Official Definition in
5 FCPA Cases.” The article, a true and correct copy of which is attached hereto as
6 Exhibit A, purports to quote Nathaniel Edmonds, the Assistant Chief of the Fraud
7 Section of the Criminal Division of the Department of Justice, who recently made an
8 appearance in the present case. See Docket No. 331. Defendants understand that Mr.
9 Edmonds will be arguing on the Government’s behalf at the May 9 hearing on
10 Defendants’ Motion to Dismiss.
11 The article describes Mr. Edmonds as having “warned defendants facing charges
12 under the [FCPA] against contesting [the definition of foreign official].” See Exh. A.
13 According to the article, Mr. Edmonds stated that “[i]t’s not necessarily the wisest
14 move for a company” to challenge the definition of “foreign official,” and indicated
15 that “[q]uibbling over the percentage ownership or control of a company is not going
16 to be particularly helpful as a defense.” Id. The article goes on to state that,
17 “[a]ccording to Edmonds, who should be considered a foreign official is a matter of
18 fact that the jury should decide, not a matter of law for the judge to determine.” Id.
19 Defendants respectfully submit that Mr. Edmonds’ comments supplement at
20 least two important points made in Defendants’ Motion and Reply. First, there is a
21 reason the Government’s maximalist position on the definition of “foreign official” has
22 avoided serious judicial scrutiny for so long, and the reason is that individuals and
23 companies are reluctant to challenge the Government’s interpretation for fear of the
24 consequences. Second, the Government does not have a definition of
25 “instrumentality” that can withstand judicial scrutiny because, among other things, it is
26 unable to say what would make one state-owned enterprise, but not another, an
27 “instrumentality” under the FCPA.
28

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 Case 8:09-cr-00077-JVS Document 358 Filed 05/05/11 Page 3 of 6 Page ID #:6193

1 The Government’s position cannot stand, and Defendants respectfully request

2 that their Motion be granted.
3 Dated: May 5, 2011
4 Respectfully submitted,

5 GIBSON, DUNN & CRUTCHER LLP

6 By: s/Nicola T. Hanna
7 Nicola T. Hanna

8 Attorneys for Defendant STUART CARSON

9
SIDLEY AUSTIN LLP
10
By: s/Kimberly A. Dunne
11
Kimberly A. Dunne
12
Attorneys for Defendant HONG CARSON
13
14 BIENERT, MILLER & KATZMAN, PLC
15 By: s/Thomas H. Bienert, Jr.
16 Thomas H. Bienert, Jr.
17 Attorneys for Defendant PAUL COSGROVE
18
LAW OFFICES OF DAVID W. WIECHERT
19
20 By: s/David W. Wiechert
David W. Wiechert
21
Attorneys for Defendant DAVID EDMONDS
22
101071892_1.DOC
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EXHIBIT A
Case 8:09-cr-00077-JVS Document 358 Filed 05/05/11 Page 5 of 6 Page ID #:6195
 Case 8:09-cr-00077-JVS Document 358 Filed 05/05/11 Page 6 of 6 Page ID #:6196

1 CERTIFICATE OF SERVICE
2 I hereby certify that on May 5, 2011, I electronically filed the foregoing
3 SUPPLEMENT TO DEFENDANTS’ REPLY IN SUPPORT OF AMENDED
4 MOTION TO DISMISS COUNTS ONE THROUGH TEN OF THE
INDICTMENT with the Clerk of the Court by using the CM/ECF system, which will
5
send a notice of electronic filing to the following:
6
Andrew Gentin — andrew.gentin@usdoj.gov
7
8 Douglas F. McCormick — USACAC.SACriminal@usdoj.gov,
doug.mccormick@usdoj.gov
9
Hank Bond Walther — hank.walther@usdoj.gov
10
11 Charles G. LaBella — charles.labella@usdoj.gov

12 Nathaniel Edmonds — nathaniel.edmonds@usdoj.gov

13 Kimberly A. Dunne — kdunne@sidley.com
14
David W. Wiechert — dwiechert@aol.com
15
Thomas H. Bienert, Jr. — tbienert@ bmkattorneys.com
16
17 Kenneth M. Miller — kmiller@bmkattorneys.com

18 Teresa C. Alarcon — talarcon@ bmkattorneys.com

19 Marc S. Harris — mharris@scheperkim.com, vkirkland@scheperkim.com
20 Jean M. Nelson — jnelson@scheperkim.com
21
22 /s/Nicola T. Hanna
23 Nicola T. Hanna

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