Lower Court Holding
Decision of the D.C. Circuit Court of Appeals
Sun-Diamond is a large agricultural cooperative owned by individual member cooperatives, including Diamond Walnut Growers, Sun-Maid Growers of California, Sunsweet Growers, Valley Fig Growers, and Hazelnut Growers of Oregon. It came within the sights of an independent counsel, Donald C. Smaltz, who was responsible for investigating allegations of unlawful activity by former Secretary of Agriculture Mike Espy. The Independent Counsel charged Sun-Diamond with making illegal gifts to Espy, committing wire fraud, and making illegal campaign contributions. Linking Sun-Diamond and Espy was the figure of Richard Douglas. As Sun-Diamond’s vice president for corporate affairs, Douglas was responsible for (among other things)…
