Assisting in the defense of an AIG fund manager, indicted for FCPA violations in Azerbaijan.
Nardello & Co. was retained to assist in the defense of David Pinkerton, an AIG fund manager who was indicted for alleged FCPA violations relating to the privatization of the national oil company in Azerbaijan [US v. Kozeny, et al.]. The government’s case relied heavily on information provided by a cooperating witness. Our team conducted an investigation of the cooperating witness in various locations including the US, UK, Turkey, Serbia, Cyprus, Russia, Azerbaijan, and Australia. We found that the co-operator had engaged in wrongful activity both historically and during the period of his cooperation with the government.
To establish alternative theories for the cooperating witness’s actions that suggested his role in the scheme was likely much larger than previously known, we reviewed relevant records and conducted a series of interviews. The government’s case as to Mr. Pinkerton also relied on a conscious avoidance theory, i.e., he must have known of illegal payments because objective due diligence would have led him to walk away from the investment. As part of the defense, we conducted historical “snapshot” due diligence to show that, in fact, at the time the investment was made, due diligence would have provided ample reason for the client to proceed with the transaction, because, inter alia, the US government was actively encouraging investment in Azerbaijan in the relevant time period.
Defense counsel used our findings to win a dismissal of the case against its client three years after he was indicted.