Alina Habba, the acting US Attorney for New Jersey, steps into a contentious legal battle over foreign bribery enforcement.
According to New York Post, Habba successfully secured the dismissal of a significant foreign bribery case on Wednesday, following President Trump's executive order that halted Foreign Corrupt Practices Act enforcement.
The dismissal came after Newark US District Judge Michael Farbiarz initially refused to grant a six-month delay requested by Habba's predecessor, John Giordano. Instead of allowing the delay, Farbiarz had presented prosecutors with an ultimatum: either proceed with an April 7 trial date or file a motion to dismiss the case.
President Trump has expressed strong opposition to the Foreign Corrupt Practices Act, viewing it as an impediment to international business dealings. His recent executive order, signed in February, implemented a 180-day freeze on FCPA enforcement.
Trump's perspective on the FCPA was clearly articulated during the executive order signing. He emphasized his concerns about the law's impact on business operations.
Trump stated:
It sounds so good, but it's so bad. It hurts the country, and many, many deals are unable to be made because of it. Nobody wants to do business because they don't want to feel like every time they pick up a phone, they're going to jail. So, we'll sign this, and it takes courage to sign it because you only get bad publicity when you sign it. It sounds so nice.
The case centered on two high-ranking executives from Teaneck, NJ-based technology outsourcing company Cognizant. Gordon Coburn, the company's former president, and Steven Schwartz, its former chief legal officer, faced criminal charges related to alleged bribes in India.
Prosecutors had accused the executives of authorizing $3.6 million in bribes to an Indian official. The alleged payments were meant to facilitate the construction of a large office complex in Chennai.
The case had been ongoing since 2019, when Cognizant agreed to pay $25 million to settle a related Securities and Exchange Commission complaint. The SEC's investigation revealed that the alleged bribery began with an initial $2 million payment in 2014 to a Tamil Nadu state official.
Judge Farbiarz, a Biden nominee, has emerged as a significant figure in various Trump administration legal matters. His involvement extends beyond this bribery case to other controversial issues.
Currently, he oversees the Trump administration's attempt to deport Mahmoud Khalil, a former Columbia University student, for anti-Israel activism. On Tuesday, Farbiarz denied the administration's request to transfer Khalil's case to Louisiana, where the student is currently detained.
The judge's approach to the bribery case differed notably from his handling of other dismissal requests. Unlike the recent corruption case involving New York City Mayor Eric Adams, where additional review was ordered, Farbiarz granted this dismissal with a brief: "The motion is granted."
Acting US Attorney Alina Habba secured the dismissal of a major foreign bribery case targeting two Cognizant executives accused of authorizing $3.6 million in bribes to Indian officials. The dismissal came after President Trump's executive order halted Foreign Corrupt Practices Act enforcement, marking a significant shift in the government's approach to international business practices. The case's resolution reflects the administration's broader efforts to reshape foreign corruption enforcement, with potential implications for similar cases nationwide.
