Citing a serious government prosecutorial misstep, a judge indicated his intention to order a new trial for Robert E Quinn, a former executive of Clark Material Handling Co. The ruling prompted an exchange between Quinn's attorney and the company.
Judge John D Bates decided that the prosecution improperly withheld critical information "unfairly prejudicing Quinn in the presentation of his defence." Bates, who serves in Washington on the federal court for the District of Columbia, filed a 36-page opinion on 29 February.
With the verdict overturned and their case impugned, prosecutors in the US Department of Justice national security section must decide whether to retry Quinn or drop the litigation.
Quinn's attorney blamed Clark of Lexington, Kentucky, for his client's woes, and, in turn, the Clark chief executive officer defended the company's actions.
"Basically, Clark sent Bob Quinn out there unprepared," Aitan Dror Goelman tells
Forkliftaction.com News. "The legal department at Clark should have made sure people were educated" about what is, and is not, permissible under US export control laws.
A district court jury heard evidence during an eight-day trial and convicted Quinn in December 2005 of conspiracy and five counts of violating the US trade embargo with Iran (
Forkliftaction.com News #239). Quinn was sentenced to 39 months in prison and fined USD6,600, but he has remained free pending a resolution of his appeal.
Clark forklift parts, worth about USD32,000, were shipped through a trading firm in the United Arab Emirates and then illegally forwarded to a forklift truck manufacturing and distribution firm in Iran. Iranian seizure of the US embassy in Tehran in November 1979 led the US to impose the embargo.
Bates said the government withheld the fact that Quinn's boss had lied to agents and prosecutors in saying he warned Quinn not to make indirect shipments to Iran.
The supervisor, David S C Tatum, pleaded guilty to one count of making a false statement to federal agents and was fined USD5,000 and sentenced to one year of probation and 50 hours of community service (
Forkliftaction.com News #272).
US Department of Commerce agents searched the Clark facility in December 2004 and confiscated evidence including emails and other records. After the raid, Clark management had "no choice but to co-operate with the government," says Goelman, a partner with the Washington-based law firm of Zuckerman Spaeder LLP.
"The expendable guy was Bob Quinn," says Goelman. "Mr. Tatum told Bob Quinn that it was a way to conduct business, but it is clear from the documents that the government was relying on something that was not true."
As the case developed, there was "a confluence of interests between the government (prosecutors) and the powers at Clark," Goelman says. "Judge Bates' decision shows that individuals are not powerless."
Dennis Lawrence, Clark Material Handling president and CEO, has responded to Goelman's comments, saying "Clark was not on trial in the government's successful case against Mr. Quinn for violating the U.S. trade embargo with Iran". Clark does not in any way condone or tolerate violations of the law and is committed to rigorous standards of compliance and training as well, he says.
Clark has had a long-standing mandatory compliance program that "it expected and required all employees at every level, wherever located, to adhere to", he adds.
"While Clark supported Mr. Quinn and others throughout the government's investigation and prosecution of this case, it co-operated fully with the United States in this matter. Clark understands that this has been a difficult and trying period for Mr. Quinn and his family; however, Clark is committed to observing all laws and expects that all of its employees will uphold this commitment."