The DOJ doubles down on individual accountability: What the guilty verdict in U.S. v. Hobson means for the future of FCPA enforcement

Background

Hobson served as Vice President of Sales at Corsa Coal Company (Corsa or Company), which operated domestic mines and conducted business in foreign markets, including Egypt. On March 31, 2022, Hobson was arrested on charges of violating the FCPA, conspiracy to violate the FCPA, money laundering, conspiracy to launder money, and conspiracy to commit wire fraud. According to the indictment, Hobson allegedly bribed officials at Egyptian state-owned entity Al Nasr Co. to secure US$143 million in contracts for Corsa. The DOJ also alleged that Hobson conspired to secretly receive over US$200,000 of the commissions paid through a sales intermediary as kickbacks. Hobson pleaded not guilty to the charges in April 2022.

Hobson's trial began on February 9, 2026. At trial, Hobson's defense counsel argued that he did not have knowledge of and did not direct the alleged bribes. Counsel also asserted that Hobson did not know that Al Nasr was a government-affiliated company at the time payments were made. The prosecution countered with testimony from Frederick Cushmore Jr., the executive who took over the Al Nasr relationship after Hobson's departure from Corsa in 2018. Cushmore agreed to cooperate with the prosecution after pleading guilty to similar charges in November 2021. Cushmore alleged payments made to Corsa's agent in Egypt were bribes to Egyptian officials to buy coal from the Company.

Hobson is scheduled to be sentenced on June 25, 2026.

Significance of the Hobson trial

In the past, FCPA trials have been rare, generally – and even rarer for individuals. When President Trump issued Executive Order 14209 in early February 2025 instructing the DOJ to temporarily pause enforcement of the FCPA, Hobson was one of five FCPA cases that had already been set for trial. Ten days after the Executive Order was issued, Hobson asked the court for a 180-day continuance of his trial to allow “sufficient time for the [DOJ] to evaluate the prosecution of this case in light of” the Executive Order.

Following a review, the DOJ elected to proceed with the prosecution – a decision that reinforces its shift in FCPA enforcement priorities, announced last summer. As discussed in a prior client alert, Deputy Attorney General (DAG) Todd Blanche's June 2025 memorandum established guidelines and priorities for resumed enforcement of the FCPA. Blanche directed DOJ officials to limit undue burdens on American companies and to target enforcement actions against conduct that directly undermines U.S. national interests. In addition to directing prosecutors to initiate and proceed with enforcement actions aimed at countering narcotics trafficking cartels, Transnational Criminal Organizations (TCOs), and Foreign Terrorist Organizations (FTOs), the guidance also instructs prosecutors to consider (1) protecting the competitiveness of U.S. companies operating abroad; (2) focusing on urgent threats to U.S. national security; and (3) prioritizing cases involving substantial bribe payments and fraudulent conduct in furtherance of the bribery scheme. Notably, all three of these latter factors were present in the Hobson case. The prosecution involved the U.S. mining sector, identified as a national security interest for the Administration. The case also involved alleged money laundering and wire fraud aimed at securing a large sum just shy of US$150 million in contracts for Corsa.

The prosecution also highlights another key element of the Administration's FCPA enforcement priorities: individual accountability. DAG Blanche emphasized in his June memorandum that prosecutors should focus on cases where individuals engaged in misconduct and “not attribute nonspecific malfeasance to corporate structure.” A shift from prioritizing corporate enforcement trends, the DOJ declined to prosecute Corsa itself – a fact which Hobson's defense counsel attacked in pretrial motions by arguing that the Company and its Board of Directors “bought their way out of prosecution” by settling with the government. This was undoubtedly a reference to Corsa's decision to disgorge US$1.2 million after authorities agreed not to prosecute.

Following Hobson, it is increasingly likely that individual prosecutions will comprise a growing segment of FCPA enforcement actions under the Trump Administration. This is further buttressed by DAG Blanche's directive to prosecutors to consider “collateral consequences” (such as disrupting “lawful business” and impacting “a company's employees”) when exercising discretion in bringing FCPA charges.

Recommendations moving forward

While Hobson had already been set for trial when President Trump issued Executive Order 14209, the fact that the DOJ proceeded with the prosecution and successfully secured a guilty verdict serves as a cautionary tale for American individuals and companies operating abroad. The case highlights that while enforcement priorities may have changed, the Administration will still use its FCPA enforcement authorities to keep bribery of foreign entities in check.

While incentives for voluntary cooperation remain, individuals whose conduct is determined to be violative of the FCPA or other criminal statutes will face significant legal risks. Accordingly, companies are advised to ensure that existing compliance programs are sufficiently robust to satisfy the requirements outlined by the FCPA, as well as the DOJ's Evaluation of Corporate Compliance Programs guidance. Moreover, executives, senior officials, and those engaging with high-risk third parties must be appropriately trained and act in accordance with the law – including avoiding the appearance of impropriety – especially when engaging in foreign business transactions.

The Hogan Lovells Investigations, White Collar, and Fraud team is prepared to help global companies navigate FCPA compliance amid these emerging developments. Please reach out to our team to discuss a risk-based approach tailored to the needs of your organization.

Authored by Lillian S. Hardy, Gejaa Gobena, Carina Tenaglia, and Elizabeth Spaeth.