A Pennsylvania federal jury on Wednesday delivered a sweeping guilty verdict in the closely watched Hunter Hobson Coal Exec Bribes lawsuit, convicting former coal executive Charles Hunter Hobson after roughly five hours of deliberations in a high-stakes Foreign Corrupt Practices Act trial.

The decision came despite last year’s temporary pause in enforcement of the FCPA, underscoring that the gears of federal prosecution, once set in motion, can be difficult to stop.

Jury Convicts on Multiple Counts

Hobson was found guilty of two counts of violating the Foreign Corrupt Practices Act, conspiracy to violate the statute, money laundering, conspiracy to commit money laundering and conspiracy to commit wire fraud. He is scheduled to be sentenced June 25.

Prosecutors said Hobson, a former vice president at Corsa Coal, knowingly allowed his agent in Egypt to funnel portions of his commissions as bribes in exchange for lucrative coal contracts worth $143 million. The contracts were awarded between 2016 and 2018 by Al Nasr Co. for Coke and Chemicals, which prosecutors described as a government-affiliated Egyptian company.

According to the government, Hobson pocketed more than $200,000 in kickbacks tied to the arrangement. The alleged proceeds flowed through Western Union transfers, a trip to Dubai where Hobson returned with more than $30,000 in cash, and financial transfers between a Dubai shell company and its U.S. affiliate.

Defense Disputes Knowledge, Government Ties

Hobson’s attorneys argued he neither authorized nor knew of any bribes. They maintained he did not instruct his Egyptian agent to pay off officials and did not understand Al Nasr to be a government-affiliated entity when it purchased coal from Corsa.

The defense also challenged the prosecution’s legal foundation, disputing whether Al Nasr qualified as an “instrumentality” of the Egyptian government under the FCPA — a key requirement of the statute. They further questioned expert testimony asserting that bribery is illegal under Egyptian law.

An essential component of the FCPA is that bribes must be directed to a government official or someone acting on behalf of a state-controlled entity. Prosecutors insisted the state-controlled coal and chemicals company met that definition.

Trial Resumed After Enforcement Pause

Hobson’s trial had initially been delayed after President Donald Trump signed an executive order calling for a review of existing FCPA cases, arguing that overbroad enforcement hindered U.S. companies competing overseas.

The case, however, ultimately proceeded, and trial began Feb. 9.

Without testimony from Hobson’s alleged Egyptian co-conspirators — who were believed to be in custody in Egypt, according to pretrial filings — prosecutors leaned heavily on other evidence. That included testimony from Hobson’s successor at Corsa, who admitted to continuing the scheme and pleaded guilty under a cooperation agreement.

Investigators also presented dozens of messages exchanged between Hobson and his agent, Ahmed Nassar. The communications appeared to intertwine discussions about coal pricing with references to splitting commissions and ensuring payments to members of Nassar’s “team” to maintain contracts shipping coal to Egypt.

Some messages referenced “H.H.” as sharing in the commissions, amounts prosecutors said aligned with the money Hobson allegedly received.

Appeal Under Consideration

“We are very disappointed in the verdict,” said Richard L. Gaines, one of Hobson’s attorneys. “We continue to believe Mr. Hobson is innocent of the charges, and we are considering an appeal to the U.S. Court of Appeals for the Third Circuit.”

The government’s case was led by Natalie Kanerva and Ligia Markman of the U.S. Department of Justice’s Criminal Division, along with Nicole Stockey of the U.S. Attorney’s Office for the Western District of Pennsylvania.

Hobson is represented by James Price of Lacy Price & Wagner PC and Richard L. Gaines.

With sentencing set for June 25, the courtroom drama now shifts to its next act — where the consequences of the jury’s decision will be measured not in contracts or commissions, but in years.