Seventh Circuit Orders New Trial In Non-FCPA, FCPA Enforcement Action And Orders That Individuals Be Released From Prison

The Seventh Circuit’s recent opinion overturns the district court’s conviction of Anne Promajuri and co‑defendants, ordering a new trial and directing that they be released from prison pending retrial. The panel focused on the Supreme Court’s Snyder decision, which eliminated the § 666 conspiracy theory that underpinned the original verdict. By striking the 666 counts, the court found the remaining evidence insufficient to sustain the conspiracy and books‑and‑records convictions, especially where the jury relied on a Pinkerton instruction that the government now cannot justify as harmless error. This reversal underscores the shifting legal landscape for non‑FCPA and FCPA enforcement.

Counsel highlighted the distinction between legal and evidentiary errors, noting that Yates‑type legal errors are not harmless if the jury’s verdict hinges on a flawed instruction. The Pinkerton instruction, which allowed the jury to infer liability for each conspiratorial act, became the linchpin of the government’s case but now appears irredeemable after Snyder and the Thompson ruling on falsity. Thompson clarified that “falsify” requires more than mere omission; the record must be misleading in context. The Seventh Circuit concluded that the omission‑based false‑records theory lacked the materiality needed to survive the new standard, rendering the conviction unsafe.

For businesses, the decision signals heightened scrutiny of how corporations draft and disclose subcontractor information under the FCPA and related securities statutes. Prosecutors must now base false‑records charges on clear, material misrepresentations rather than peripheral omissions. The ruling also offers a roadmap for defendants seeking relief: challenge Pinkerton instructions and leverage recent Supreme Court guidance to argue for new trials and immediate release.