Updates to our Terms of Use

We are updating our Terms of Use. Please carefully review the updated Terms before proceeding to our website.

Sunday, June 23, 2024 | Back issues
Courthouse News Service Courthouse News Service

Court Revives Fraud Case Against Ex-FLIR Execs

SAN FRANCISCO (CN) - The 9th Circuit revived the government's fraud case against three former FLIR Systems executives who were indicted on more than 50 counts of securities, mail and wire fraud.

Prosecutors accused J. Kenneth Stringer III, J. Mark Samper and William N. Martin of falsifying the financial records of their company, which sells high-tech infrared and heat-sensing cameras for military and industrial use.

The district court dismissed the criminal indictments based on its conclusion that the government had violated defendants' due-process rights by simultaneously pursuing both criminal and civil investigations of the same allegations.

But the appeals court said the government fully disclosed that it might use information from the civil investigation in criminal proceedings. "There was no deceit," Judge Schroeder wrote, "rather, at most, there was a government decision not to conduct the criminal investigation openly, a decision we hold the government was free to make."

The court also reversed an order suppressing evidence about an accounting entry from a defense attorney. The judges said any potential conflict of interest did not interfere with the attorney-client relationship.

Categories / Uncategorized

Subscribe to Closing Arguments

Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.