Photo Courtesy – Oliver Contreras (EFE)
A federal judge in New Jersey has authorized the United States Department of Justice to close the case against Gordon Coburn and Steven Schwartz, two former executives of the tech company Cognizant, who were accused of paying millions in bribes in India. This marks the first foreign corruption case publicly dropped since President Donald Trump halted the enforcement of the Foreign Corrupt Practices Act (FCPA), a key regulation in the fight against transnational bribery. Information sourced from Stabroek News.
The judge, Michael Farbiarz, dismissed the case “with prejudice,” preventing its reopening. The decision followed a request from Alina Habba, acting prosecutor for the district of New Jersey and a former personal lawyer to Trump, who argued a “recent evaluation” based on the presidential executive order that froze the enforcement of the FCPA.
The case dates back to 2019, when Coburn and Schwartz were charged with authorizing a $2 million payment to an Indian official to obtain construction permits. Although Cognizant settled the civil part of the case by paying $25.2 million to the SEC, the two executives always denied guilt and are now celebrating the definitive closure of the case.
For anti-corruption advocates, the decision confirms a concerning shift in foreign and justice policy under the current administration. Trump has criticized the FCPA since his first term, calling it a “horrible law” that, according to him, hindered U.S. businesses abroad.
While other democracies strengthen their legal frameworks to sanction corrupt practices of their companies outside of their borders, the Trump administration appears to be retreating from its commitments. The dismissal of the case not only frees the accused but also raises questions about the Executive’s willingness to pursue large corporations for financial crimes beyond their borders.