Chiquita FARC Accounting Expert Report

Case 0:08-md-01916-KAM Document 1324-1 Entered on FLSD Docket 04/03/2017 Page 1 of
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EXHIBIT A
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UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF FLORIDA
NO. 08-01916-MD-MARRA
IN RE: CHIQUITA BRANDS

INTERNATIONAL, INC. ALIEN
TORT STATUTE AND SHAREHOLDER
DERIVATIVE LITIGATION
This Document Relates To:

ATA ACTIONS
/
NO. 08-20641-CIV-KAM
TANIA JULIN, et al.

Plaintiffs,
vs.
CHIQUITA BRANDS INTERNATIONAL, INC.,
Defendant.
/
OLIVIA PESCATORE, et al.

Plaintiffs,
vs.
Defendant.
/
GREGORY SPARROW, ON BEHALF OF

THE ESTATE OF JANE PESCATORE SPARROW
Plaintiff,
vs.
Defendant.
/
Expert Report
of Antonio L. Argiz, CPA/ABV/CFF/CGMA, ASA, CVA, CFE
August 17, 2016
Morrison, Brown, Argiz & Farra, LLC, Certified Public Accountants and Advisors
1450 Brickell Avenue, 18th Floor
Miami, Florida 33131
Telephone: (305) 373-5500
Fax: (305) 373-0056
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In Re Chiquita
Expert Report of Antonio L. Argiz, CPA/ABV/CFF/CGMA, ASA, CVA, CFE
August 17, 2016
TABLE OF CONTENTS
EXPERTISE AND QUALIFICATIONS .................................................................................................. 3

COMPENSATION ..................................................................................................................................... 4
ASSIGNMENT............................................................................................................................................ 4
EXECUTIVE SUMMARY OF MY OPINIONS...................................................................................... 5
BACKGROUND AND ALLEGATIONS ................................................................................................. 6
BASIS FOR OPINIONS AND METHODOLOGY ................................................................................. 8
MY ANALYSIS AND OPINIONS .......................................................................................................... 13
HISTORY OF CHIQUITA IN COLOMBIA ............................................................................ 13
CHIQUITAS INTERNAL CONTROLS AND ACCOUNTING PRACTICES WITH
REGARD TO TERRORIST PAYMENTS................................................................................ 20
KNOWLEDGE OF CHIQUITAS SENIOR EXECUTIVES REGARDING SENSITIVE
PAYMENTS ................................................................................................................................. 25
NTM DAMAGES ......................................................................................................................... 29
TIMELINE OF WHEN PLAINTIFFS COULD HAVE DISCOVERED PAYMENTS ....... 29
SUMMARY OF OPINIONS .................................................................................................................... 31
2
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EXPERTISE AND QUALIFICATIONS
1. I, Antonio L. Argiz, am the Chief Executive Officer of Morrison, Brown, Argiz & Farra,
LLC, one of the top 40 accounting firms in the nation and the largest Florida-based independent public
accounting firm. MBAF employs over 450 professionals that serve domestic and international clients in a
broad range of industries which operate in 44 countries and all 50 U.S. states. My responsibilities include
the leadership of the firms audit and litigation and valuation practices in MBAFs nine offices, including
quality control procedures and the delivery of professional services. My work includes providing audit,
and litigation support services to South Florida organizations in a variety of industries. As part of my
professional experience, I am familiar with reviewing work papers and financial statements for financial
statement audits of publicly-held companies, and for various litigation claims that have arisen in litigation
or arbitration matters.
2. I received a Bachelor of Business Administration degree from Florida International
University in 1974. I have been a Certified Public Accountant (CPA) in Florida since 1977, in Colorado
since 1987, in Pennsylvania since 1991, in New York since 1997, and in Texas since 2000. I hold the
following accreditations and certifications: Accredited Senior Appraiser (ASA), Accredited in Business
Valuations (ABV), Certified Valuation Analyst (NACVA), Certified Fraud Examiner (CFE), and Certified
in Forensic Financials (CFF). I am a member of the American Institute of Certified Public Accountants
(AICPA) and the Florida Institute of Certified Public Accountants (FICPA), where I have served on its
Council and the Board of Governors, respectively. I chaired the Florida Board of Accountancy in 1989 and
its Probable Cause Panel in 1988. I have previously lectured and written extensively in various areas of the
accounting profession.
3. I have testified as an expert in damages involving a variety of litigation and arbitration
matters. A summary of my expert testimony over the last four years, a list of publications, and my
Curriculum Vitae is included as Composite Exhibit A to this Report.
3
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COMPENSATION
4. MBAFs fees for professional services provided are based on hours actually expended by
each assigned staff member multiplied by the standard hourly billing rate for that individual, plus
administrative and out-of-pocket expenses. MBAFs fee is not contingent on any action or event resulting
from the analyses, opinions, or conclusions within, or the use of the Report.
ASSIGNMENT
5. In the matter of In re: Chiquita, I, Antonio L. Argiz, of Morrison, Brown, Argiz & Farra,
LLC (MBAF), was retained by the law firms of Kohn Swift & Graf P.C.; Preti Flaherty Beliveau &
Pachios LLP; Osen LLC; Hagens Berman Sobol Shapiro LLP; and Podhurst Orseck, P.A., counsel for the
Plaintiffs (Counsel), 1 to provide expert opinions regarding:
a. The total amounts of payments Chiquita made to the Revolutionary Armed Forces of
Colombia (FARC) from 1989 through May 1999, and for other terrorist organizations,
from 1989 to 2003;
b. Chiquitas internal controls and accounting practices, including whether and if so, how
Chiquita concealed its sensitive payments to terrorist organizations;
c. Knowledge of Chiquitas senior executives regarding the sensitive payments to terrorist
organizations;
d. The total amount of economic damages incurred by New Tribes Mission (NTM) from
1993 to 2000 relating to the kidnapping of its missionaries stationed in Colombia and
Panama by the FARC; and
e. The timeline as to when Chiquita publicly disclosed the sensitive payments to terrorist
organizations.
1
Counsel represent all Plaintiffs in the following three actions against Chiquita Julin et al. v. Chiquita
Brands International, Inc. (Chiquita), No. 08-20641-CIV-MARRA; Pescatore et al. v. Chiquita, No.
09-80683-CIV-MARRA and Sparrow v. Chiquita, No. 11-80402-CIV-MARRA.
4
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6. I am not opining on any legal matters related to the claims involved in this litigation. I have
not been asked by Counsel to render any legal opinions and do not do so.
7. MBAF had no prior relationship with and has not previously provided services to or on
behalf of the Plaintiffs or Defendants. We have no present or prospective interest in the any of the parties
that are the subject of these matters. We also do not have any personal interest or bias with respect to the
parties involved.
8. During the course of my work on this matter, I and staff working under my direction and
supervision, have analyzed documents that were produced to me by Counsel or obtained through Internet
research to prepare my Report and additional documents that were produced to us upon our request. A list
of the documents we reviewed is attached as Exhibit B to this Report.
9. My opinions are based upon my skills, knowledge, training, education and experience in
matters of this nature and my analysis of the materials considered in preparing this Report.
EXECUTIVE SUMMARY OF MY OPINIONS
The following paragraphs summarize my opinions based on the discovery I was provided and the
results of my procedures:
10. From 1989 to 1999, based on the three different sources of information I was provided
(testimony, Chiquita Interrogatory responses, and comprehensive document discovery), Chiquita paid left
and right wing terrorist organizations in Colombia between $721,000 and $1,602,233.
11. Of the total terrorist payments paid by Chiquita to left and right wing organizations from
1989 to May, 1999, it is my professional estimate that Chiquita paid the FARC between $279,000 and
$461,939.2
2
Counsel requested that I calculate the effect of inflation on the terrorist payments by Chiquita from 1989 to May
1999. My calculations resulted in an increase in the total terrorist payments of $73,000 or 4.6% to $1,675,000, and
an increase in the payments to the FARC of $22,000 or 4.8% to $483,000, respectively.
5
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12. Chiquita developed and implemented internal controls and financial accounting procedures
designed to conceal the fact Chiquita made payments to terrorists. Chiquitas conduct of fraudulent
concealment related to the Colombian terrorist payments violated the COSO Framework for Internal
Control, the Securities and Exchange Commission (SEC) accounting and recordkeeping requirements,
and generally accepted accounting principles.
13. From the inception of the FARC payments in 1989 through 2004, Senior Chiquita
executives authorized Chiquita to make payments to terrorists.
14. It was not until Chiquita entered its guilty plea on March 14, 2007 that the public became
aware of Chiquitas connection to, and history of making payments to the FARC.
FACTUAL BACKGROUND
15. My opinions are provided on behalf of two groups of plaintiffs, the Julin Plaintiffs and the
Pescatore/Sparrow Plaintiffs. Each group has filed separate actions against Chiquita.
16. The Julin Plaintiffs are the estates and survivors of five U.S. missionaries who were
kidnapped, held hostage and eventually killed by the FARC in the mid-1990s. The names of the five
missionaries were Mark Rich, Charles David Mankins, Jr., Richard Lee Tenenoff, Stephen Welsh, and
Timothy Van Dyke. The Julin Plaintiffs also include NTM, a Florida non-profit corporation that is
headquartered in Sanford, Florida. Since 1942, NTM has provided international Christian missionaries to
more than 18 nations. NTM sends the missionaries to impoverished locations, where they seek to
evangelize the indigenous people with whom they are working by embarking on projects, including the
translation of the Bible into their local language.3
17. As detailed in Paragraph 89 of this Report, NTM incurred significant expenses to attempt
to secure the release of the Julin hostages; however, NTMs efforts were not successful.
3
https://usa.ntm.org/about.
6
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18. The Pescatore/Sparrow Plaintiffs include the estate and family members of Frank
Pescatore, Jr., an American geologist who was kidnapped and murdered by the FARC in 1996/97.
19. The Defendant, Chiquita Brands International, Inc. (Chiquita or the Company), is a
company with global operations that remains one of the worlds largest suppliers of bananas and other fresh
produce. It is the second largest worldwide producer of bananas. Chiquita produces, markets, and
distributes bananas and other fresh produce throughout the world.4 The Company has been involved in
Colombia for over one hundred years and is the successor to various companies, including the Boston Fruit
Company, United Fruit Company, and the United Brands Corporation.5
20. C.I. Bananos de Exportacion, S.A. (Banadex) was Chiquitas wholly-owned subsidiary
that produced bananas in various farms in the Urab and Santa Marta regions of Colombia. In the early
1980s, Chiquita began to purchase farms in Colombia, including the Urab and Santa Marta regions,
because of anticipated future market demand in Europe.6 By 2003, Banadex was Chiquitas most profitable
banana-producing division. In June 2004, Chiquita sold Banadex.7
21. The FARC has been listed by the U.S. Department of State as a terrorist organization since
the 1980s.8
22. From 1989 through 1999, Chiquita made numerous secret payments to the FARC.9
23. Chiquita secretly paid other terrorist organizations through the period from 1989 to 2004.10
24. From 1989 to 2004, Chiquita concealed these payments to the FARC and other terrorist
4
USA v. Chiquita, Information, March 13, 2007, Paragraph 1.
5
Deposition of Charles Dennis Keiser, April 13, 2016, Page 63, Line 3 to 17.
6
Deposition of John Ordman 30(b)(6), April 20, 2016, Page 60, to Page 64.
7
USA v. Chiquita, March 19, 2007 Factual Proffer, Paragraph 2.
8
See United States Department of State, Patterns of Global Terrorism, 1987, Department of State Publication 9661,
Office of the Secretary of State, Ambassador-at-Large for Counter-Terrorism, August 1988. P-ATA-00003231-3308.,
Page 14.
9
Refer to Paragraphs 41 through 62 of this Report.
10
7
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organizations by classifying them on their books and records as security payments and did not identify
them as payments to terrorists.11
BASIS FOR OPINIONS AND METHODOLOGY
Use of Methodology
25. In accordance with American Institute of Certified Public Accountants (AICPA) Code
of Professional Conduct Section 1.295.140, forensic accounting services are defined as nonattest services
that involve the application of (a) special skills in accounting, auditing, finance, quantitative methods or
certain areas of the law, and research and (b) investigative skills to collect, analyze, and evaluate
evidential matter and to interpret and communicate findings.12
26. An expert that applies forensic procedures in computing economic damages goes beyond
a companys books and records to compile their analysis. The forensic expert applies professional
skepticism, judgment and experience in examining evidence when computing economic damages. Experts
evaluate all relevant evidence available including emails, depositions, spreadsheets, and other financial
records, where available, to understand the significance and relationship of financial evidence to their expert
opinion.
27. AICPA Practice Aid, Serving as an Expert Witness or Consultant, provides forensic
accountants with non-authoritative guidance when serving as an expert witness or consultant for litigation.
In Appendix B to AICPA Practice Aid, the AICPA provided a listing of forensic accounting services that
can be employed in a case, including, among others:
(a) Verifying how disputed transactions were recorded through the financial and accounting
processes and systems;
(b) Performing investigative accounting;
(c) Storing, categorizing, or filing financial and accounting information for document
management purposes;
(e) Analyzing or aiding in calculating restitution;
(f) Determining and cataloging asset misappropriation; and
11
12
AICPA Code of Professional Conduct, 1.295.140, Forensic Accounting, defining Forensic Accounting Services for
purposes of evaluating a professionals independence, integrity, and objectivity.
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(g) Evaluating and analyzing spending and expenses.13
28. AICPA Forensic & Valuation Services, Serving as an Expert Witness or Consultant
Practice Aid, states that a practitioner should prepare and maintain documentation, ... Results of research
and working paper documentation ... are the principal records of the procedures applied, information
obtained, and conclusions reached by the practitioner."14
Use of Sufficient Facts or Data
29. The AICPAs Statement on Standards for Consulting Services No.1 includes the following
two requirements:
(a) Due Professional Care. Exercise due professional care in the performance of
professional services; and
(b) Sufficient Relevant Data. Obtain sufficient relevant data to afford a reasonable
basis for conclusions or recommendations in relation to any professional services performed.15
30. AICPA Consulting Services Special Report 03-1, "Litigation Services Applicable
Professional Standards" also has relevant guidance for obtaining and applying sufficient relevant data:
(a) Paragraph 13 states: "The expert's function is to assist the trier of fact in
understanding complex or unfamiliar concepts after having applied reliable principles and
methods to sufficient relevant data."
(b) Paragraph 18 describes due professional care: "Due care requires diligence and
critical analysis of all work performed."
13
AICPA Forensic & Valuation Services, Serving as an Expert Witness or Consultant, Practice Aid, Appendix B;
Examples of Forensic Accounting Services, Page 50 to 57.
14
AICPA Forensic & Valuation Services, Serving as an Expert Witness or Consultant, Practice Aid, Page 15.
15
See AICPA Statement on Standards for Consulting Services No 1.
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(c) Paragraph 23 defines sufficient relevant data: "A practitioner attempts to obtain
relevant data that is sufficient to provide a reasonable basis for conclusions or recommendations
for any professional services performed.
(d) Paragraph 24 further expands on the concept of sufficient relevant data16:
"The expert needs to base his or her conclusions and judgments on sufficient relevant data.
...Experts can base opinion testimony on either facts or assumptions. Experts may base
assumptions on facts, presumptions from facts, or assumptions provided by the client, other
experts or counsel. ...Counsel may provide the expert assumptions that may be proven
from other evidence. In any case, the expert should identify the source of the information.
The practitioner should consider analyzing key assumptions to determine whether they are
reasonable." 17
Tests for Identifying Payments to Terrorist Organizations
31. In my experience as a forensic accountant and an auditor, I have relied on the U.S.
Department of States list of terrorist organizations as provided on its website.18
Internal Control Programs
32. Internal control programs are a generally recognized set of processes implemented by
management involved with a companys governance that provide reasonable assurance of the reliability of
financial reporting. Control activities are defined as the policies and procedures that management uses to
help ensure that its directives are achieved. The Committee of Sponsoring Organizations of the Treadway
Commission (COSO) has established a well-recognized comprehensive framework for internal controls.
This framework of internal controls includes a system for ensuring proper authorization and recording of
financial transactions. A companys financial statement assertions include the account balances, the
transaction class and the disclosure components of the financial statements and are classified in categories,
16
In performing financial statement audits, an auditor collects sufficient competent evidential matter to provide a
reasonable basis for their opinions. Sufficient competent evidential matter can be obtained through tests of controls
and substantive tests. Substantive tests include: inquiring of entity personnel, inspecting documents and records,
studying and comparing relationships among data (analytical tests), recalculating amounts, confirming transactions,
and physically examining assets. Although this Report is not an audit, in preparation of this Report, I applied a
combination of substantive techniques, including analytical tests, inquiry of entity personnel, and inspection of
documents and records. Similar techniques are applied in forensic accounting analysis.
17
See AICPA Consulting Services, Special Report 03-1.
18
http://www.state.gov/j/ct/rls/other/des/123085.htm.
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including presentation and disclosure. The need for appropriate presentation and disclosure provides for:
(a) transactions being recorded in the proper accounts, and (b) appropriate disclosure of particular types of
transactions. Some of the benefits of these controls include: (a) having assets protected from
misappropriation; (b) having payments recorded in the appropriate amount, period, and category; and (c)
maintaining accurate and sufficient detailed business records to justify disbursements made. In order to
maintain effective internal controls in public companies, numerous control considerations are established,
including, among others, a tone at the top of an organization to promote transparency and legal compliance,
and financial accounting policies and procedures that mandate accurate document retention for cash
disbursements and the appropriate transparent recording of transactions.19
33. A companys management, with the oversight of those charged with governance, should
ensure that its operations are complying with applicable laws and regulations, including those that
determine reported amounts and disclosures in an entitys financial statements. Noncompliant transactions
are those that are entered into by, or in the name of, a company which are contrary to prevailing laws or
regulations. Laws and regulations may affect an entitys financial statements in different ways, including
most directly, specific disclosures of the entity in its financial statements. In addition, laws and regulations
may also provide for the imposition of penalties in the case of non-compliance and would require the
potential recording and disclosure of such penalties. Whether an act constitutes noncompliance with laws
and regulations is a matter for legal determination; however, an auditors training, experience and
understanding of an organization provides a basis to recognize that certain actions taken by a company may
constitute noncompliance with laws and regulations. Among other considerations, an independent auditor
will typically consider the qualitative materiality of the effect of noncompliance on the financial statements.
Such considerations involve whether illegal payments that were otherwise considered immaterial could be
material if a reasonable possibility exists that they could lead to a material contingent liability or a material
19
PCAOB Auditing Standard No. 2, An Audit of Internal Control Over Financial Reporting Performed in
Conjunction With an Audit of the Financial Statements. See also COSO requirements.
11
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loss of revenue. Another consideration by an independent auditor with respect to noncompliant payments
is whether the financial consequences of noncompliance require disclosure because noncompliance creates
significant risks associated with material revenue or earnings.20
34. In my experience as an auditor, public companies are required to comply with the
requirements set forth by the SEC, including requirements established pursuant to the U.S. Foreign Corrupt
Practices Act (FCPA). SEC regulations and the FCPA require public companies to maintain books,
records, and accounts in sufficient detail to accurately and fairly present their financial transactions and to
establish and maintain an adequate internal control structure and procedures for financial reporting.21
35. During the course of an independent audit, generally accepted auditing standards require
that a companys management acknowledge its responsibilities for the fair presentation in the financial
statements in conformity with generally accepted accounting principles. Management also must
acknowledge that all financial records and related data are made available to the independent auditor to
complete the audit of the Companys financial statements.22
36. Generally accepted auditing standards also require that independent auditors plan and
perform audit procedures to obtain reasonable assurance about whether the financial statements are free of
material misstatement, whether caused by error or fraud. Under this auditing standard, fraud includes
misstatements arising from fraudulent financial reporting. Misstatements from fraudulent financial
reporting are intentional misstatements or omissions of amounts or disclosures in the financial statements
designed to deceive financial statement users where the effect causes the financial statements not to be
presented in conformity with generally accepted accounting principles. Fraudulent financial reporting can
be accomplished by: (a) the manipulation of accounting records or the supporting documents from which
20
See AU Section 317, Illegal Acts by Clients.
21
See the SEC Rules Related to Recordkeeping, 17 CFR Section 240.13b2-1 and 13b2-2. See also Section 13(b) of
the Securities and Exchange Act of 1934, Section 13(b)(2). See also Final Rule: Management's Report on Internal
Control Over Financial Reporting and Certification of Disclosure in Exchange Act Periodic Report.
22
See AU Section 333, Management Representations.
12
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the financial statements are prepared; (b) misrepresentation in or intentional omission from the financial
statements of events, transactions, or other significant information; and (c) intentional misapplication of
accounting principles relating to amounts, classification, manner of presentation or disclosure.23
MY ANALYSIS AND OPINIONS
HISTORY OF CHIQUITA IN COLOMBIA
37. From 1989 to 2004, Banadex, Chiquitas former wholly-owned subsidiary, produced
bananas in areas south of Turbo, around the Santa Marta area, and in farms farther inland in the province
of Magdalena. Banadex also had offices in Medellin and Santa Marta. 24 Turbo is a town in the Urab
province of Colombia.25
38. As established by Chiquitas own admissions (see Paragraph 47 of this Report), from 1989
through 2003, Chiquita made payments to several terrorist organizations, including the FARC, the National
Liberation Army (ELN), the Peoples Liberation Army (EPL), the Socialist Renovation Current
(CRS), and the United Self-Defense Forces of Colombia (the Autodefensas Unidades to Colombia or
AUC). Chiquita was a publicly-traded company during that period and thus subject to SEC reporting and
disclosure requirements.26
39. Chiquita falsely classified the payments to the terrorist organizations as security
payments.27
40. In March 2007, the U.S. Department of Justice charged Chiquita with violating the Anti-
Terrorism Act. Chiquita pled guilty and paid a $25 million non-tax deductible fine over five years, with
interest. The Company was also sentenced to five years of criminal probation.28
23
See AU 316, Consideration of Fraud in a Financial Statement Audit.
24
Deposition of Charles Dennis Keiser, April 13, 2016, Page 51, Lines 9 to 22, and Page 93, Lines 3 to 7.
25
Deposition of Charles Dennis Keiser, April 13, 2016, Page 51, Lines 9 to 22.
26
Refer to Chiquitas Annual Reports from 1989 to 2008.
27
Refer to Chiquitas Annual Reports from 1989 to 2008.
28
See Chiquitas Indictment. See also DOJ Press Release dated March 19, 2007, Chiquitas Factual Proffer, Paragraph
20, and Chiquitas Plea Agreement. https://www.justice.gov/archive/opa/pr/2007/March/07_nsd_161.html.
13
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Total Amount of Chiquitas Terrorist Payments Made Between 1989 through 2003
41. Counsel requested that I compile the total amount of terrorist payments made by Chiquita
to terrorist organizations in Colombia from 1989 through May 1999. These payments included those made
to the FARC, ELN, EPL, CRS, and the AUC. The FARC, EPL, CRS, and the ELN were left-wing terrorist
organizations. The right-wing/fascist terrorist organization was known as the AUC.
42. The FARC was established in 1966 by the Colombian Communist Party as its military
wing to defend Communist-controlled rural areas in Colombia. It is the largest of the terrorist groups that
I identified in discovery as terrorist groups in Chiquitas payment records. The FARCs goal was to
overthrow the government and acted against the United States through various terrorist means including
attacks, bombings, kidnappings of foreigners for ransom, and assassinations.29 This group was regarded
as a well-organized, nationwide group that divided Colombia into different fronts for its operations. 30
Chiquita has admitted that it made payments to the FARC.31 Payments to the FARC were made until
1999.32 According to Mr. John Ordman, Senior Vice President and Region Manager of Chiquita (Mr.
Ordman), the FARC was driven out of the banana farms by the AUC. 33 According to the Interrogatory
responses provided by Chiquita, the Company began making payments sometime in 1989 and its last
payment to the FARC was on May, 1999.34
43. The AUC was formed in or about April 1997 to organize loosely-affiliated illegal
paramilitary groups that had emerged in Colombia to retaliate against left-wing terrorists fighting the
Colombian government. Chiquita has also admitted that it made payments to the AUC.35 Chiquita was
29
Deposition of Charles Dennis Keiser, April 13, 2016, Page 103, Lines 15-20 and Page 107, Lines 4-22, Page 111,
Lines 11-21, and Page 136, Lines 4 to 10. See also P-ATA-00003291.
30
Deposition of Charles Dennis Keiser, April 13, 2016, Page 102, Lines 15-19.
31
US v. Chiquita, Factual Proffer dated March 19, 2007, Paragraph 20. See also CBI-V1-001-000135 to 150.
32
CBI-ATA-02203022.
33
See Deposition of John Ordman, April 19, 2016, Page 238, Lines 15 to 18.
34
See Defendant Chiquitas Amended Responses and Objections to the ATA Plaintiffs First Set of Interrogatories,
dated April 27, 2016, Pages 2-5.
35
US v. Chiquita, Factual Proffer dated March 19, 2007, Paragraph 19.
14
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also aware of the AUCs designation as a terrorist organization through an Internet subscription service
paid for by the Company.36
44. The ELN was a rural based, pro-Cuban, anti-US, Marxist-Leninist terrorist group formed
in 1963 that extorted and bombed US businesses in Colombia.37 The EPL was formed as a military wing
of the pro-Beijing Colombian Communist Party/Marxist-Leninist that extorted, kidnapped for ransom, and
assassinated individuals. 38 Chiquita has acknowledged that it made payments to other terrorist
organizations operating in Colombia, including ELN and the EPL.39
45. Mr. Charles Keiser, the Former President and General Manager of Banadex (Mr. Keiser),
testified that all of the Banadex operations were viewed in terms of a cost per box of shipped bananas. He
noted that his own operating knowledge and experience was based on how much it cost Chiquita to produce
a box of bananas in Colombia. In short, he saw Banadex as a cost center. 40 Thus, Chiquita regarded the
terrorist payments as a cost of doing business and spread them across the annual boxes of bananas shipped
as a cents per box cost.41
46. Based upon my review of the available discovery and the deposition testimony of Mr.
Ordman and Mr. Jorge Forton, Former Banadex Controller 42 (Mr. Forton), I found that Chiquita
maintained incomplete and inadequate records for the terrorist payments made by Banadex for the period
from 1989 to 2003. Because Chiquita never supplied the complete documentation, I found it appropriate
and necessary to consider several different professionally-utilized methods to derive a reasonable estimate
36
US v. Chiquita, Factual Proffer dated March 19, 2007, Paragraphs 27 and 28.
37
P-ATA-00003290.
38
P-ATA-00003291.
39
US v. Chiquita, Factual Proffer dated March 19, 2007, Paragraph 20. See also CBI-V1-001-000135 to 150. See
also Deposition of John Ordman, April 19, 2016, Page 237, Lines 10 to 21.
40
See Deposition of Charles Dennis Keiser, dated April 13, 2016, Page 312, Lines 4 to 10.
41
See Deposition of Charles Keiser at Pages 175 to 176 (testifying that there was no limit on what we could spend in
payments in terrorists and that any payment impacted my cost per box). See also Deposition of John Ordman, April
19, 2016, Pages 166, Lines 9-12, and Pages 167, Lines 5-6 (confirming his testimony that paying terrorists was a
cost of doing business in Colombia.)
42
See Deposition of Jorge Forton, April 27, 1999, Pages 16-17.
15
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of terrorist payments made by Chiquita to the FARC and other terrorist groups during the period from 1989
to 2003. These three approaches to calculating a reasonable estimate of Colombian terrorist payments
made by Chiquita to the FARC and other terrorist groups during the period from 1989 to 2003 included:
Considering Testimony and an Interview of Chiquita Employees. Using total Colombian
terrorist payments estimates made by Chiquita based on Chiquitas Factual Proffer in the U.S.
criminal case against Chiquita, deposition testimony from Mr. Ordman, and an interview with
Mr. Juan Manuel Alvarado, the former Banadex Director of Security (Mr. Alvarado);
Relying on Chiquitas Interrogatory Responses. Compiling terrorist payment history
information produced by Chiquita in response to interrogatories concerning the terrorist
payments it made to the FARC and other groups in Colombia; and
Compiling Terrorist Payment Documentation Produced by Chiquita. Reading, compiling
and summarizing available payment and disbursement documentation for each terrorist payment
made by Chiquita to compile a history of Chiquitas payments made to the FARC and other
terrorist groups in Colombia.
Considering Testimony and an Interview of Chiquitas Employees
47. According to deposition testimony of Mr. Keiser, Chiquitas Factual Proffer in the U.S.
criminal case against Chiquita, and notes from a Chiquita interview of Mr. Alvarado, 43 I obtained the
average annual payment estimates from Chiquita employees and calculated the payments made from 1989
to 1997. The testimony stated that average annual payments made to terrorists ranged in US dollars between
$100,000 to $200,000 per year. Similarly, Mr. Alvarado stated that payments to terrorists approximated
$200,000 per year. 44 Applying these annual rates to an eight year period, the total amount of terrorist
payments made by Chiquita in the Turbo and Santa Marta regions extrapolates to a range of $800,000 to
43
See Deposition of Charles Keiser, Pages 171-172.
44
See Alvarado Interview Notes, dated June 27, 1999, CBI-ATA00053054.
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$1,600,000.
Relying on Chiquitas Interrogatory Responses
48. I was provided with Chiquitas Interrogatory responses that provided its history of
payments to terrorist organizations. In its own responses to discovery, Chiquita stated that it could not
specifically identify to which organizations all the payments were being made. While some of the
Interrogatory responses from Chiquita specified the terrorist organization, many did not. Therefore,
Chiquita had an Other or Unidentified category for certain payments.
49. Based upon the Interrogatories received from Chiquita, Chiquitas total payments to the
FARC from 1989 through 1999 were in Colombian Pesos (COP$), COP$260,500,000. I converted the
COP$ amount into US dollars using historical exchange rates that results in total payments to the FARC
for the respective period of $279,111. Refer to Exhibit D.
50. Based upon the Interrogatories received from Chiquita, the total payments to the other
or unidentified terrorist organizations from 1982 to 1997 totaled COP$395,450,000. I converted the
COP$ amount into US dollars using historical exchange rates that results in total payments to the other
or unidentified terrorist organizations for the respective period of $442,307. Refer to Exhibit E.
51. Therefore, Chiquitas total terrorist payments from 1989 to 1999 was COP$655,950,000.
I converted the COP$ amount into US dollars using historical exchange rates that results in total terrorist
payments (i.e., to the FARC and other terrorist organizations) for the respective period of $721,418. These
amounts are summarized on Exhibit C.
Compiling Terrorist Payment Documentation Produced by Chiquita
52. I conducted an extensive review of documents, depositions, and supporting payment
documentation provided in discovery, including Form 1016s, general ledger history, bank account
statements, and other documentary information in order to estimate payments made to terrorist
organizations. This is further described below at Paragraph 63 that describes Chiquitas Internal Control
and Accounting Processes for terrorist payments. Our analysis suggests that my estimate is likely
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underestimated the payments because of deposition testimony which indicates that Colombian payments to
terrorists prior to 1995 were not being accurately tracked or recorded.
53. I found that the payments were being made monthly and in some cases, weekly, based on
the historical table of payments I have developed. As Mr. Keiser testified, Chiquitas initial payment to the
FARC was made in 1989 for $10,000.45 A summary of total terrorist payments by year follows:
Total U.S. Dollars

Paid to Terrorist Number of
Year Organizations Payments
1989 $ 10,000 1
1992 136,909 16
1993 75,061 23
1994 210,764 39
1995 167,153 26
1996 105,189 21
1997 294,369 28
1998 229,875 24
1999 3,413 1
Total $ 1,232,733 179
54. I found testimony and substantial documentary evidence of terrorist payment transactions
that were not included in Chiquitas responses to its Interrogatories. The total terrorist payments I
calculated excluded, where possible, the allocated costs of the couriers, security organizations and
consultants to facilitate the payments. Based upon the procedures I have performed, the total terrorist
payments Chiquita made from 1989 through May, 1999 amounted to COP$1,258,692,217. I converted the
COP$ amount into US dollars using historical exchange rates that results in total payments for the respective
period of $1,232,733.
55. I also estimated that the total FARC payments Chiquita made from the total terrorist
payments in the previous paragraph from 1989 through May 1999 amounted to COP$329,378,333. I
45
Deposition of Charles Dennis Keiser, April 13, 2016, Page 137, Lines 8-22 and Page 140, Lines 15-21.
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converted the COP$ amount into US dollars using historical exchange rates that results in total FARC
payments to for the respective period of $355,223.
56. During the course of my review, I compiled a list of unidentified terrorist payments which
could not be specifically identified to a particular terrorist group because of the ambiguous description. The
total amount of these unidentified terrorist payments between 1989 and May 1999 and that were in excess
of COP$400,000 amounted to total terrorist payments of COP$382,272,984 and in US dollars at their
historical exchange rates, $369,500. See Exhibit F-1.
57. I have allocated these total unidentified payments to the FARC payments based on the
weighted average of the FARC payments to the total identified terrorist payments (i.e. 28.8% of the total
identified terrorist payments multiplied by the unidentified terrorist payments). Therefore, I estimate that
Chiquita made additional payments to the FARC between 1989 and May 1999 of COP$110,946,619 and
in US dollars at their historical exchange rates, $106,416. See Exhibit F-1.
58. Based on the detailed review of Chiquitas payment documentation that was made
available in discovery, I have estimated Chiquitas total terrorist payments from 1989 through May 1999
to be $1,602,233, with the FARC payments comprising $461,639 of the total terrorist payments. These
amounts are included in Exhibit F.
59. Chiquitas FARC payments ceased after May 1999 following the arrival of the AUC. In
Mr. Keisers Affidavit dated February 18, 2009, payments to the AUC or convivires thereafter were made
generally on a monthly basis and were based on the number of boxes of bananas shipped from the
Companys farms.46 From 1999 to 2003, AUCs per box payment arrangement with Banadex ranged from
one cent to three cents per box of bananas shipped from the Urab and Santa Marta farms. 47 I compiled
46
See Affidavit of Charles Kaiser, dated February 18, 2009, Paragraphs 11, 13, and 15.
47
See CBI-V1-003-000014 and CBI-V1-003-00016. From handwritten notes in Chiquitas files dated March 6, 2000,
the per box payments began in October 1999 and the payments were based on three cents per shipped box of bananas.
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the total payments to AUC under the per box arrangements from 1999 to 2003 that amounted to $1.26
million and is shown on Exhibit G.48
60. A summary of terrorist payments made by Chiquita based on the various methods I used
to estimate the amounts is shown below:
Summary of Chiquita's Payments to Terrorist Organizations

Total FARC
Time Period Method of Calculation Payments Payments
1989-1997 1 Testimony $ 800,000-1,600,000 Not Available
1989-1999 2 Chiquita Interrogatory Responses 721,000 $ 279,000
1989- May 1999 3 Chiquita Document Compilation 1,602,233 461,639
1999-2003 3 AUC Only Payments from Documents 1,260,000 -
61. It is my professional opinion that between 1989 to May 1999, Chiquita paid left and right
wing terrorist organizations in Colombia between $721,000 and $1,602,233.49
62. Of the total terrorist payments paid by Chiquita to terrorist organizations from 1989 to
May 1999, it is my estimate that Chiquita paid the FARC between $279,000 and $461,639.
CHIQUITAS INTERNAL CONTROLS AND ACCOUNTING PRACTICES WITH REGARD TO

TERRORIST PAYMENTS
63. In 1990, Mr. Wilfred White, the former Vice President of Chiquitas Internal Audit
I noted that someone reported that among the payments that were described as those which disguise the real purpose
of providing security, were payments being made to Inversiones Manglar SA, Asociacin Para La Paz Del Magdalena
and to a payee identified as Tagua del Darien.
48
Chiquita also acknowledged to the federal court that from 1997 to February 2004, it made over 100 payments to the
AUC totaling over $1.7 million. See US v. Chiquita, Factual Proffer dated March 19, 2007, Paragraph 19. The
remaining $0.5 million in payments are part of the amounts paid to other terrorist groups as compiled under Paragraph
53 of this Report.
49
From 1999 to 2003, Chiquita made payments to the AUC that totaled $1,260,000. Counsel requested that I calculate
the effect of inflation from the year of payment through 2016 on the terrorist payments made by Chiquita from 1989
to May 1999. To perform this calculation, I applied the respective years inflation rates (calculated as the average
annual inflation rates using the Consumer Price Index published by the Bureau of Labor Statistics) beginning the year
after the terrorist payments were made through 2016. My calculations resulted in an increase in the total terrorist
payments of $73,000 or 4.6% to $1,675,000, and an increase in the payments to the FARC of $22,000 or 4.8% to
$483,000, respectively.
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Department (Mr. White), established an accounting policy at Chiquita, Accounting For Sensitive
Payments, that allowed divisions to allocate sensitive payments that required confidentiality to be
identified and classified as Managers Expenses.50 This policy remained in effect over the years, was
updated over time, and included a requirement that the Vice President of Internal Audit was to review the
Managers Expenses submitted to the Law Department every six months.51
64. Under the policies and procedures for recording sensitive payments, including cash and
check payments for General Managers expenses, Chiquita stated that descriptions were only needed if a
description was recorded on Form 1016 or in the accounting records, and generally such detailed
explanations were not required.52
65. Prior to 1994, Banadex was reported to have a weak financial organization in Medellin,
Colombia. 53 Banadex did not have strong accounting practices for tracking its payments to terrorist
organizations from 1989 to 1991.54
66. In 1993 or 1994, Chiquita formalized accounting procedures to track the payments being
made to terrorist organizations. Mr. Forton implemented certain operating and accounting procedures to
strengthen the documentation concerning the terrorist payments. These procedures involved developing a
matrix of approval authorizations (i.e., knowing which individual is able to approve certain payments and
the payment limits) and implementing Form 1016s to record and log sensitive payments being made to
terrorist organizations.55 A description of the process is as follows:
a. Mr. Alvarado completed and coded the Form 1016s;

b. Explanatory notes or other documents would be attached for the Form 1016, if any, and
retained in Colombia;
c. Only Mr. Keiser could approve the Form 1016 before Mr. Forton did;
50
CBI-VI-001-003855.
51
CBI-VI-001-003941.
52
See Memorandum from Wilfred White dated January 30, 1996, CBI-ATA-00001641.
53
CBI-S4-009-047386. See also Deposition of Jorge Forton, 1999 deposition, Pages 40-41.
54
See Deposition of Jorge Forton, April 27, 1999, Pages 40-41. See missing documents as listed on General Managers
Fund Back-Up Documentation, Status as of October 21, 1992, CBI-V1-001-003872.
55
See Deposition of Jorge Forton, April 27, 1999, Pages 34, and 36-38.
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d. Mr. Forton was required to sign the Form 1016 before a check would be issued; 56 and
e. A check was issued by Banadex under a separate set of approval limits for check signers
based on the check amount being issued.57
No exceptions were permitted by Mr. Forton relating to these procedures for security payments.58
67. Mr. Forton prepared reports regarding the terrorist payments that were forwarded to
Chiquita world headquarters in Cincinnati. 59 Mr. Forton also reported that he was completing forms
relating to FCPA compliance each quarter that were sent to Cincinnati and which listed payments made to
terrorist organizations. These reports were being completed by Banadex as early as the first quarter of 1992
through the first quarter of 2003.60 Mr. Forton testified that all terrorist organization payments through the
first or second quarter of 1996 were reported on Banadexs FCPA reports submitted to Chiquita in
Cincinnati.61
68. Mr. Ordman testified that the spreadsheets that compiled the terrorist payments used
merely generic descriptions to document the payments. The only means to determine the actual justification
for the terrorist payments was by access to records that were contained in a safe in Mr. Alvarados office
in Colombia.62
69. Mr. Ordman testified that documents that moved through Banadexs accounting system
could not say payment to FARC on them. 63 Apart from Form 1016s, the Companys officers used code
terms involving colors and words to conceal payments being made to the FARC and other terrorist
organizations. Such disguised terms64 included:
56
See Deposition of Jorge Forton, April 27, 1999, Pages 63-65, 107, and 113-118.
57
See Deposition of Jorge Forton, April 27, 1999, Page 69, Lines 14-23.
58
See Deposition of Jorge Forton, April 27, 1999, Page 80, Lines 10 to 17.
59
See Deposition of Jorge Forton, April 27, 1999, Page 87-88, and 92-95.
60
See various FCPA compliance reports completed by Banadex and in discovery during the period from the first
quarter of 1992 through the first quarter of 2003. See also Deposition of Jorge Forton, April 27, 1999, Page 75 Line
18 to Page 76 Line 12, Pages 82-83.
61
See Deposition of Jorge Forton, April 27, 1999, Page 163.
62
See Deposition of John Ordman, Page 144, Lines 10-22, and Page 145, Lines 1-2, 10-14.
63
See Deposition of John Ordman, 2016, Pages 91, and 98-100.
64
Payments were recorded using terms like buying fence posts or moving rocks or marine transportation or some
kind of generic work order or material.[1] The wide variety of terminology was intentional because, Keiser testified,
they didnt want to have one word which always meant something, because that would arouse suspicions of people
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Code
Terms As Identified by
Operations Mr. White65
Cristobal Mr. Ordman
Luis Alberto Agudelo Mr. Ordman/Mr. Alvarado 66
Rojo (FARC) Mr. Ordman/Mr. Alvarado
Azul (ELN) Mr. Ordman/Mr. Alvarado
Brown (CRS) Mr. Ordman/Mr. Alvarado
Gris (EPL) Mr. Ordman /Mr. Alvarado 67
security payments Chiquita
security services Chiquita68
Donacin Martima Mr. Alvarado69
70. Chiquita did not establish defined corporate requirements for the disbursement
documentation. Mr. Alvarado maintained his own private notes that described that certain disbursements
were for the FARC. Receipts and memos were attached to the Form 1016s at all times. As testified to by
Mr. Forton, memos from Mr. Alvarado did not describe what the payments were being made for and he
would code the payments to conceal their true objective.70 Terrorist payments were recorded for accounting
purposes in the operations account, while payments to the government were recorded in the logistics
account.71 Banadex made payments to both terrorist groups and anti-terrorist groups that could retaliate
against the Company for supporting both sides of the terrorist activity.72
71. Chiquitas internal auditors were required to tick and tie to make certain that each
in accounting or other employees that we had.[2] As he noted, we purposely tried locally to disguise these
payments.[3]. See Deposition of Charles Keiser, dated March 31, 2009, Page 263, Line 22 to Page 264, Line 2. See
also Testimony of Charles Keiser, Vol. 33, November 3, 2010, Page 3141, Lines 17-20. See also Testimony of
Charles Keiser, Vol. 33, November 3, 2010, Page 3140, Line 24 to Page 3141, Line 1.
65
Chiquita Interviews of Wilfred W. White, November 12, 1998, CBI-ATA-00053225.
66
See Deposition of John Ordman, 2016, Pages 258-259. See also Deposition of John Olivo, dated December 15,
1999, Page 63.
67
See Deposition of John Ordman, April 19, 2016, Pages 148-152, and Page 129, Line 16 to Page 130, Line 7. See
also CBI-ATA-00053057.
68
US v. Chiquita, Factual Proffer dated March 19, 2007, Paragraph 23. See Juan Manuel Alvarado, Interview Notes,
June 27, 1999, Page 4.
69
See Juan Manuel Alvarado, Interview Notes, June 27, 1999, Page 7.
70
See Deposition of Jorge Forton, April 27, 1999, Page 107. See also Juan Manuel Alvarado, Interview Notes, June
27, 1999, Page 4. See also Deposition of John Ordman, April 20, 2016, Page 178, 11-21.
71
Deposition of Jorge Forton, April 27, 1999, Page 84, Lines 7-9.
72
See Presentation on Warehouse Permit Renewal Payments, September 18, 1998, CBI-ATA-00076443. See also
Deposition of Jorge Forton, April 27, 1999, Page 79, Lines 10 to 15.
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payment was recorded in a manner that was comfortable to the Company.73
72. Although Chiquita stopped paying the FARC in 1999, Chiquita continued to make
payments to other terrorist organizations through increasingly sophisticated methods. For AUC payments,
Chiquita accounted for these payments in its corporate books and records as security payments or
payments for security services. Banadex never received any security services in exchange for these
payments.74
73. Mr. White testified that Ernst & Young, Chiquitas independent public accountants, had
knowledge of the terrorist payments since they were discussed at Chiquitas Audit Committee Meetings.75
Ernst & Young repeatedly gave Chiquita unqualified audit opinions from 1999 to 2007.76
74. Based on the review of the discovery identified in this Report, it is my opinion that Chiquita
developed and implemented internal controls and financial accounting procedures designed to conceal
financial information about payments being made to terrorists from 1989 through 2004. The Companys
actions failed to establish effective internal accounting and financial reporting controls. Moreover,
Chiquitas intentional masking of terrorist payments by using code words and maintaining inaccurate and
minimally detailed business records did not permit the payments to be appropriately identified and
evaluated for financial reporting and disclosure purposes. Chiquitas conduct of concealment related to
73
See Deposition of John Ordman, November 23, 1999, Page 43, 67-70.
74
US v. Chiquita, Factual Proffer dated March 19, 2007, Paragraphs 23 and 25.
In or about March 2002, Chiquita established new procedures for direct cash payments to the AUC. In or about June
2002, Chiquita began paying the AUC in the Santa Marta region of Colombia directly and in cash according to the
new procedures established by Chiquita. Banadex made out checks to personal individuals and drawn from one of its
Colombian bank accounts. The payee of the check would cash the check personally and hand deliver the cash to AUC
personnel in Santa Marta. Banadex would treat these direct cash payments to the individuals as compensation to the
individual and record the withholding of the corresponding Colombian tax liability. Banadex reported the payments
to the Colombian tax authorities and paid the corresponding individuals tax liability. This treatment of the cash
payments to the AUC made it appear that the individuals acting as couriers of improper cash payments were being
paid more money, and increased the risk that these individuals would be targets for kidnapping or other physical harm
by the terrorist organizations. The payee of these checks kept a private ledger that did not reflect the ultimate intended
recipient of the payments.
75
See September 10, 1997 Audit Committee Meeting Minutes and Chiquita Interviews of Wilfred W. White,
November 12, 1998, CBI-ATA-0053225.
76
See the 1999 to 2007 Annual Reports of Chiquita.
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the Colombian terrorist payments violated the COSO Framework for Internal Control, the Securities and
Exchange Commission (SEC) accounting and recordkeeping requirements, and generally accepted
accounting principles.
75. Based on my review of the public filings for Chiquita, a reader of its financial statements
was not able to determine that Chiquita made payments to the FARC until Chiquita admitted doing so in
2007.
KNOWLEDGE OF CHIQUITAS SENIOR EXECUTIVES REGARDING SENSITIVE

PAYMENTS
76. Mr. Keiser regarded himself as employed by Chiquita during the period when Chiquita
paid the FARC and other terrorist groups in Colombia.77 Mr. Keisers immediate supervisor was Mr.
Ordman for the entire time he was in Colombia from 1987 to 2000.78
77. Chiquitas senior executive team authorized the payments to the FARC starting with the
first payment in 1989. Initially, Chiquita made cash payments to the FARC at the FARCs request.79 In
his April 13, 2016 deposition, Mr. Keiser testified that he agreed to facilitate the payments to the FARC.
Upon receiving the FARCs payment demand of $10,000, Mr. Keiser contacted Mr. Ordman to alert him
and determine the course of Chiquitas response. Mr. Keiser was instructed to come to Chiquitas
headquarters and attend a meeting with other executives, including Mr. Ordman, Mr. Charles Morgan (the
head of Chiquitas legal department), Mr. Bob Kistinger (Mr. Ordmans boss), and Mr. Dennis Doyle,
(Chiquitas Chief Operating Officer). This group of Chiquita executives agreed to make the requested
payment to the FARC.80 The initial $10,000 payment was facilitated by Mr. Ordman in cash through a
Honduran managers fund. When Mr. Keiser and Mr. Ordman arrived in Colombia, they exchanged the
dollars for Colombian pesos. Then, the Colombian pesos were hidden in a tire on the back of a jeep driven
77
See Deposition of Charles Dennis Keiser, April 13, 2016, Page 49, Lines 13 to Page 50, Line 3.
78
See Deposition of Charles Dennis Keiser, April 13, 2016, Page 61, Lines 15 to 21.
79
See CBI-ATA-02203022.
80
See Deposition of Charles Dennis Keiser, April 13, 2016, Pages 138-140.
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to Medellin, and the money was delivered to the FARC by a farm employee.81
78. On January 4, 1994, Mark Blackham, a senior internal auditor for Chiquita who reported
to Mr. White, wrote a memo to Robert Thomas, senior counsel for Chiquita, because he had traveled to
Colombia in November and December 1993 to audit Banadex and had discovered, and was very concerned
by, the payments to FARC and other organizations.82
79. In his deposition, Mr. Forton testified that in 1996, he met with Mr. Robert Kistinger,
Executive Vice President of Chiquita Tropical Products Group, Mr. White, Mr. Bob Thomas as the Legal
Department representative, and Mr. William Tsacalis, the Vice President and Controller of Chiquita,
regarding the compilation of documents and support for the sensitive payments made by Chiquita in
Colombia. Mr. Forton testified that Mr. Kistinger stated that these sensitive payments could not be audited.
80. During a 1998 interview, Mr. White stated that he knew about terrorist payments before
his September 13, 1996 meeting with Mr. Alejandro Bakoczy. Chiquitas Security Chief.83
81. In his 1999 deposition, Mr. John Olivo, Banadexs Controller following Mr. Forton,
testified that in 1994, he was told that the terrorist payments made in Colombia were approved by Chiquitas
management.84
82. In July 1996, Mr. White conducted a review of the Colombia General Managers Expenses
from 1993 and 1996. These records were those held by the Law Department and Internal Audit to verify
that all reports and supporting documentation records for General Managers expenses were provided. The
81
82
Deposition of Mark Blackham, May 13, 2016, Page 29, Line 18 through Page 32, Line 20; see also id., Page 18,
Line 8 to 12 (knowing whats going on in the country, I found that hard to believe, that, you know, a company with
the reputation as Chiquita would do something like that.); see also id. Page 24, Line 5 to Line 11 (I called Bud White
and the manager that I was working with, Carlos Huertas del Pino, and told them that there was something very serious
that I had found and I really couldnt talk to them over the phone about it. Particularly since it was of such sensitive
nature).
83
See Chiquita Interview of Wilfred White dated December 29, 1998.
84
See Deposition of John Olivo, December 15, 1999, Pages 60-61.
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schedules of payments included certain payments to terrorists.85
83. In April 1997, an audit of Banadexs FCPA Report submission was conducted by
Chiquitas Internal Audit Department, which found that 18 percent of the payments were missing from the
FCPA Report that should have been disclosed.86
84. In his 1999 deposition, Mr. Kistinger, testified that after Chiquita decided to make
payments to the FARC, a system was established to track and control the payments labeled as security
payments in Colombia. The payments were maintained through confidential terms and coding in order to
limit the information to a few individuals.87
85. According to Mr. Keiser, Mr. John Ordman periodically reviewed the payments when he
visited Colombia.88
86. After ceasing payments to the FARC in 1999, Chiquita continued to make payments to the
AUC. In 2007, Chiquita pled guilty to violating U.S. anti-terrorism laws by funding the AUC. In deposition
testimony and thorough its Proffer to the Court, Chiquita admitted that:
a. In or about September 2000, an in-house attorney reported on the results of an internal
investigation on the terrorist payments made in Colombia at a meeting of the then Audit
Committee of the Board of Directors in Chiquitas Cincinnati headquarters.89
b. On or about February 20, 2003, a Chiquita Executive Officer was advised by outside
counsel of a national law firm in Washington, D.C. that the payments to the AUC were
illegal under United States law and that the Company should immediately stop paying the
85
CBI-V1-001-003907 to 39.
86
CBI-V1-001-001656.
87
See Deposition of Robert Kistinger, 1999 deposition, Pages 38-39.
88
89
US v. Chiquita, Factual Proffer dated March 19, 2007, Paragraph 22.
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AUCs directly or indirectly. However, Chiquita continued making payments to the AUC.90
c. On or about April 3, 2003, a Chiquita Board Member and a high-ranking officer reported
to the full Board of Directors that Chiquita had been making payments to a terrorist
organization. The Board agreed to disclose to the Department of Justice that Chiquita had
been making payments to a terrorist organization.91
d. On or about April 8, 2003, high-ranking officers and employees of Chiquita met and agreed
to continue making payments to the AUC.92
e. On or about April 24, 2003, two high ranking officers from Chiquita and their outside
counsel met with officials of the Department of Justice and disclosed that they had been
making payments to the AUC for years. The Department of Justice informed Chiquita that
its payments were illegal and could not continue.93
f. On or about May 5, 2003, Chiquita employees instructed other employees to continue
making payments to the AUC. 94
g. On or about September 8, 2003, outside counsel advised Chiquita that the Department of
Justice officials had not given assurances or guarantees of non-prosecution and view the
AUC payments as violations of the law, and could not endorse any future payments.95
87. Based on my review of the discovery, it is my professional opinion that Chiquitas Senior
Executives authorizesd Chiquita personnel to make payments to left wing and right wing terrorists
beginning with the FARC payment in 1989 until they finally stopped paying the AUC in 2003. Chiquita
continued making terrorist payments even after it was told by the Companys external counsel and the
90
US v. Chiquita, Factual Proffer dated March 19, 2007, Paragraphs 55 to 58.
91
US v. Chiquita, Factual Proffer dated March 19, 2007, Paragraphs 59 to 82
92
93
94
See Deposition of John Ordman, April 19, 2016, Pages 277-280.
95
US v. Chiquita, Factual Proffer dated March 19, 2007, Paragraphs 59 to 82.
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Department of Justice that such payments were illegal and should not be continued.
NTM DAMAGES
88. As defined by the civil remedies provisions of the American Terrorist Act as provided by
Counsel, any US national who has been injured by international terrorism, or their estate or heirs may sue
in federal court to recover damages.96
89. I also reviewed the deposition testimony of Mr. Tim Meisel, NTMs Controller, and Mr.
Guy Sier, NTMs International Contingency Coordinator, and available financial records, including NTMs
Treasurer Reports and general ledger that detail the costs incurred by NTM related to the kidnappings and
deaths of NTMs missionaries. NTMs expenses were incurred in its efforts to rescue and recover the five
kidnapped missionaries from the FARC in Colombia. The type of costs that I regard as reasonable for
rescue and recovery of kidnapped individuals are similar to what a kidnap and ransom policy would
consider as covered costs associated for a kidnapping incident, including among others, fees for negotiators,
other professionals, including legal or public relations; costs for security consultants, reward money;
medical costs; travel expenses related to the incident; and other costs.97 In my opinion, NTMs claimed
costs are appropriate damages. NTM paid the expenses from its own funds. NTMs costs from 1993 to
2003 which were related to the kidnappings and deaths of their missionaries amounted to $838,179 as
shown on Exhibit H.
TIMELINE OF WHEN PLAINTIFFS COULD HAVE DISCOVERED PAYMENTS
90. I was asked to review what documents were in the public record, including those
documents that were released by Chiquita that first acknowledged the specific terrorist payments made in
Colombia, and in particular, disclosed that payments were made by the FARC.
96
18 U.S.C. Code Section 2333 civil remedies, subsection (a).
97
http://www.iii.org/article/insuring-against-employee-kidnapping-and-ransom.
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91. In 1999, the SEC began an investigation of Chiquita to determine if Chiquita bribed
Colombian governmental officials, including customs officials, and tried to conceal the bribes. The
investigation was unrelated to the payments made by Chiquita to the FARC, and was private and
confidential. The witness interviews and examination of accounting records were private and
confidential.98
92. The investigation remained private until October 3, 2001, when the SEC released its
findings with respect to SEC v. Chiquita, Civ. Action No. 1:01CV02079.99 The Commission concluded
that Chiquita violated provisions of the SEC Act of 1934 in connection with payments to foreign customs
officials. The Commission filed a complaint in federal court seeking entry of a consent order requiring
Chiquita to pay a $100,000 civil penalty. Chiquita settled the action without admitting or denying the
Commissions allegations. The Litigation Release does not reference any payments made by Chiquita to
terrorist groups and therefore made no mention of the FARC.100
93. I have reviewed Chiquita press releases in the first two quarters of 2004 relating to the
restatement of financial results and Chiquitas 2004 Annual Report, issued in the spring of 2005. In neither
the press releases nor the Annual Report did Chiquita disclose that it made payments to the FARC.101
94. On March 19, 2007, Chiquita pled guilty to violating U.S. anti-terrorism laws by funding
the AUC. In doing so, Chiquita admitted that it had also made payments to FARC for years. Chiquita
admitted using similar tactics to conceal payments to both FARC and AUC in order to disguise and hide
the payments. Chiquita identified tactics, including making false and misleading entries on its books and
records; filing false and/or misleading documents with the Colombian and U.S. governments; and advising,
aiding, assisting and/or conspiring with the FARC to set up phony front entities for the purpose of further
98
See Investor Bulletin: SEC Investigations, U.S. Investor Alerts and General Overview of Investigatory Procedures.
99
See Litigation Release No. 17169, U.S. SEC, October 3, 2001.
100
See Litigation Release No. 17169, U.S. SEC, October 3, 2001.
101
Chiquita Brands International, Inc., Press Release dated May 10, 2004. See also 2004 Annual Report with Chiquita.
30
68
In Re Chiquita
August 17, 2016
disguising and concealing Chiquitas payments. 102
95. After reviewing the public disclosures and the claim by Chiquita that it had disclosed its
payments to the FARC in 2004, it is my professional opinion that it was not until Chiquita entered its guilty
plea on March 14, 2007, that any member of the public could have known of Chiquitas connection to the
FARC and the history of Chiquitas payments made to the FARC.
SUMMARY OF OPINIONS
The following paragraphs summarize my opinions based on the discovery I was provided and the
results of my procedures:
96. From 1989 to May 1999, Chiquita paid left and right wing terrorist organizations in
Colombia between $721,000 and $1,602,233. Of the total terrorist payments paid by Chiquita to terrorist
organizations from 1989 to 1999, it is my estimate that Chiquita paid the FARC between $279,000 and
$461,639.103
97. Chiquita developed and implemented internal controls and financial accounting procedures
designed to conceal the fact that Chiquita made payments to terrorists from 1989 through 2004. The
Company failed to establish and maintain effective internal accounting and financial reporting controls.
Chiquitas conduct of fraudulent concealment related to the Colombian terrorist payments violated the
COSO Framework for Internal Control, the Securities and Exchange Commission (SEC) accounting and
recordkeeping requirements, and generally accepted accounting principles.
98. Chiquitas Senior executives ordered Chiquita personnel to make payments to terrorists
from the inception of the FARC payments in 1989 through 2004. Chiquita continued to conceal these
102
Chiquita Plea Agreement dated March 19, 2007.
103
From 1999 to 2003, Chiquita made payments to the AUC that totaled $1,260,000. Counsel requested that I
calculate the effect of inflation from the year of payment through 2016 on the terrorist payments made by Chiquita
from 1989 to May 1999. My calculations resulted in an increase in the total terrorist payments of $73,000 or 4.6% to
$1,675,000, and an increase in the payments to the FARC of $22,000 or 4.8% to $483,000, respectively.
31
68
In Re Chiquita
August 17, 2016
payments even after they were told by the Companys outside counsel and the Department of Justice that
such payments were illegal and should not be continued.
99. Not until Chiquita entered its guilty plea on March 14, 2007, could any member of the
public have known of Chiquitas connection to the FARC and the history of Chiquitas payments made to
the FARC.
100. Based on the procedures performed above, my expert opinion is that under the Amended
Complaint, NTM has estimated economic damages amounting to $838,000.
101. Additional information may come to my attention after the date of this Expert Report that
could affect the opinions herein. I reserve the right to supplement and/or amend my opinions and report as
appropriate in light of such additional information.
Respectfully submitted,
Antonio L. Argiz, CPA/ABV/CFF, ASA, CVA, CFE, CGMA
32
68
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68
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CERTIREQ PUBLlC ACCOUNTANTS AND ADYISQRS
"i Jason N. 2akia, Esq.

Seaway Biltmore, Inc. Court of Chancery of the State White &Case
11192-CB Consulting/Valuation
(Respondent) (2016) of Delaware
' Miami FL
Sanchez Arango Construction Circuit Court of the 11th '~ Joseph A. DeMaria, Esq.
Co. J udicial Circuit in and for 15-011236-CA-01 Stockholders Litigation Fox Rothschild LLP
(Plaintiff) (2016) Miami-Dade County, Florida 1 Miami FL
Jim Robinson, Esq. &

Robin Forbes v. Akerman Cheryl Tedeschi Sloane, ~
Circuit Court of the 11th
Senterfitt LLP and Greenberg Forensic Accounting Esq.
J udicial Circuit in and for 03-2561-CP-02
Traurig, LLC W hite &Case
Miami-Dade County, Florida
(Defendant-2015) Miami, FL
-_~ __._-- _._.~_ ____ __ _e.,..~_ _.,.~... _-__...,
Francisco Mayorga Garcia and Joseph DeMaria, Esq.
Circuit Court of the 11th
Solange del Castillo v. Inn on Personal Injury Fox Rothchild LLP
judicial District for Miami- 2013-26568-CA
North Bay, Ltd. and 1819, Inc Miami, FL '
Dade County, Florida 9
(Defendant - 2015)
Michael H. Nullman,
Jonathan E. Mitchell v. The Kegel Esq./Dominick R. Lioce,
Company, Inc. and Jonathan Esq.
' Florida Arbitration N/A Business Damages
Davis Mason, Yeager, Gerson,
(Respondent -2015) White & Lioce, P.A.
West Palm Beach, FL
Dori Foster-Morales, Esq

David F. Alfonso v. Linda B Circuit Court of the Eleventh
Foster-Morales Sockel
Alfonso J udicial Circuit in and for 2014-011722-FC-04 Divorce
Stone
(Petitioner - 2015) Miami-Dade County, Florida
Miami, FL
---- - i
Trevor Sorbie International PLC
v.Sorbie Acquisition Co., Trevor Circuit Court of the 17th ? John F. Mariani, Esq.
Sorbie of America Inc., and The ~ Judicial Circuit in and for 05-14908-07 Economic Damages Shutts &Bowen LLP
Stephan Co. Broward County, Florida West Palm Beach, FL
(Defendant-2014)
~_..__~a..__. ____ __ __~ -- .__ .~r.s--~ ___...____
Henry M. Lloyd, Esq.
I Zupnik Haverland LLC v. Stearns ~ Circuit Court of the 17th
Cadeaux, Taglieri &
& Roberts et. al. ! Judicial Circuit in and for CACE10018770 Malpractice
Notarious, PC
(Plaintiff- 2014) ', Broward County, Florida
i Washington, DC
Michael J. Schlesinger,
940 Lincoln Road Enterprises, ' Esq.
Circuit Court of the 11th j
Inc. & 947 Lincoln Road Business Damages Schlesinger &Associates,
J udicial Circuit in and for 13-4200 CA (31) ~,
Investments, Inc. [ P.A.
Miami-Dade County, Florida
(Defendant -2014) ', Miami, FL
68
_ 3 ,.
n-rc>~rusc ~x~~~~~n .~tc~u ~~ Far~x.~, L.i.c~ ~+r~/e ~e-~~f~gi~~a~~r

CEFtTIFIEL? PU&LIC ACCOUNTAtJTS AND ADVISOR4
Barry L. Wachholder, P.A. v. Clifford A. Wolff, Esq.

Streimer & Flusberg, P.A., Laura % Florida Arbitration N/A I RS Tax Codification The Wolff Law Firm
Streimerand Richard Flusberg Fort Lauderdale, FL
(Plaintiff - 2014)
USA and The State of Florida, et ` United States District Court for J ustin C. Sorel, Esq.
the Southern District of
al v. Keiser University N/A Business Damages ! Cole, Scott & Kissane, P.A.
;' Florida, Fort Lauderdale
(Defendant -2014) West Palm Beach, FL
s Division i
Irene K. Korge v. Christopher G. ?~ Circuit Court of the Eleventh '; Raymond J. Rafool, Esq.
Korge ' Judicial Circuit for Miami-Dade 12-009064 FC 26 Divorce Raymond J. Rafool, LLC
(Petitioner - 2014) County, FL ~ Coral Gables, FL
BRE Cocoa Beach Owner, L.L.C., "' United States District Court Stephen Stukey, Esq.
V. Rolyn Companies, Inc Middle District of Florida N/A Business Damages ' Cole, Scott & Kissane, P.A.
(Defendant-2014) 'Orlando Division Miami, FL
American Bridge Bahamas, Ltd., ` Circuit Court of the 11th E. Colin Thompson, Esq.
V. The Ritz-Carlton Hotel Business Damages DLA Piper, LLP
judicial District for Miami- 11-34830 CA 05
Company, L.L.C., et al Tampa, FL
Dade County, Florida
(Defendant - 2014)
UGO Colombo/CMC Group, Inc. ! Circuit Court of the 11th ! James N. Robinson, Esq.
v. Dacra Development Corp Judicial Circuit for Miami-Dade 10-47486 CA 22 Business Damages White &Case, LLP
(Plaintiff - 2014) County, Florida is Miami, FL
__._~ ---__ _.,., - ----. z_ _ a ___ ------_._.__
s
Arthur Falcone et al v. Edie ;Circuit Court of the 11th Mitchell W. Berger, Esq.
Lacquer et al ; Judicial Circuit for Miami-Dade 08-11213 CA 20 Business Damages Berger Singerman, LLP
(Plaintiff- 2014) County, Florida Miami, FL
Faust Harrison Pianos Corp v. Jonathan B. Nelson, Esq.

United States District Court,
Allegro Pianos 09 Civ. 6707(KMKj Business Damages ' The Dorf Law Firm, LLP
Southern District of New York Mamaroneck, NY
(Defendant - 2013)
_ _ _ _ _. __r._.__ _ ____.,. m__.__ - -- I--- w.__._~__~ _~.~ _
Laboratories Haymann, SA v. k Angelika Hunnefeld,Esq.
international Court of
TEVA Pharmaceuticals, USA, Inc. N/A Business Damages ~ GreenbergTraurig, PA
;Arbitration international
& IVAX Pharmaceuticals, Inc. ' Chamber of Commerce Miami, FL
(Respondent-2013)
Taylor Bean Whitaker et al v. ' Circuit Court of the 11th Chris D. Landgraff, Esq.
Deloitte Touche, LLP 'i Judicial Circuit for Miami-Dade 11-30967 CA r Accounting Malpractice Bartlit Beck, et al
(Defendant - 2013) County, Florida a Chicago, IL
DEI Holdings Inc. v. David A. Circuit Court of the 11th 1 L Anthony 5. Fiotto, Esq.T
Shareholder Rights
Morre, et al ', Judicial Circuit for Miami-Dade 11-31778CA Goodwin Procter, LLP
Dispute ? Boston, MA
(Plaintiff-2013) ' County, FL
68
~toiai~so~ s~c~ti-~.~~~ ~t ra~a~Z~. Lt.c~

CERTIFIED PUBLIC ACCQIJNTANTS AND ADVISORS
F._
_.T..,
. ..._. ,__._.___.____.._ .__. ~ _._ .... _'___.. .. ~_..___ .... _...... . _ ___._.__ _._.._ . ____ ... .. ..._..__r.._ _ _. __
I
Scott M. Zaslav, Esq.

Circuit Court of the 11th ~
Boaziz v. Toledano ~ judicial Circuit for Miami-Dade 08-75374 CA 40 Business Damages ' Moskowitz, Mandell,
(Plaintiff - 2013) Salim & Simonwitz, P.A.
County, FL Fort Lauderdale, FL
Philips Lake Worth, LP v. Circuit Court of the 15th ' Kevin Kaplan
BankAtlantic ' Judicial Circuit in and for Palm N/A Business Damages '+ Coffey Burlington
(Plaintiff- 2013) ! Beach County, FL I Miami, FL
MYD Marine Distributor, Inc., et Circuit Court of the 17th Lindsey Blenkhorn, Esq.
al. v. International Paint LTD, et ; Judicial Circuit in and for Gibson, Dunn & Crutcher,
N/A Commercial Damages
aL Broward County, Florida LLP
(Defendant - 2013) ; Complex San Francisco, CA
Adam Hall, Esq.

Etkin &Company, Inc. v. SBD LLC United States District Court Business Damages Hall, Lamb, &Hall PA
11-CV-21321
(Defendant - 2013) ' Southern Court of Florida Miami, FL
Leor Exploration &Production, US District Court Southern ` David Zack, Esq.

LLC et al v. Guma Aguiar District of FL, Miami Dade N/A Business Damages Coffey Burlington, PL
(Defendant- 2012) Division Miami, FL
Johnson, et al v, Mastec, Inc., et Circuit Court 11th Judicial 'Victor M. Diaz, Jr., Esq.
al Circuit, Miami-Dade County, 10-62153(CA 40) Shareholder Dispute VM Diaz &Partners, LLC
(Defendant - 2012) FL i~ Miami Beach, FL
Woodbridge Holdings v. William ' lames T. Sandnes, Esq.

J. Maeck, Ravenswood Circuit Court 17th Judicial Shareholder Rights Boundas, Skarzynksi,
09-64811-CC-25
Investments, III, LP, et al Circuit, Broward County, FL Dispute +Wash &Black, LLC
(Defendant - 2012) ' New York, NY
~_~ _~_ ~_ _--- __.__.~._,~. ~ .~ .__~ ~ ,_ _Q _ __:_______.~__.__w._. __. __ -,___ __.__._ _.__.__;
Autumn Partnership, LLP f/k/a '~ Luis A. Espino Esq.
REWJB Investments, d/b/a Farm Circuit Court 11th Judicial
Business Damages " Fowler Rodriguez Valdes- '
Stores u. HT Hackney Co. Circuit, Miami-Dade County, FL 02-00311 CA 09 Pauli
(Plaintiff- 2012) Coral Gables, FL
First Citizens Bank &Trust et al ~ Diana L. Fitzgerald, Esq. i

v. Cypress Springs Florida ~ Circuit Court, 18th Judicial Forensic Accounting,
2009-CA-009600 ~ Fitzgerald &Isaacson, LLP
Apartment, LLC et al , Circuit, Seminole County, FL ~ Application-US GAAP
Miami, FL
(Defendant-2012)
USA v. Century Homebuilders, ~ i Mitchell E. Widom, Esq.

LLC et al ~ US District Court, Southern 1:09-CV-22258 King-McAliley Breach of Contract Bilzin Sumberg, et al
(Defendant - 2012) ;District, FL ~ ~ Miami, FL
__ n ~ ~...._ ~._ _ . _ u __. _ ~__ ___ .. _,... ___ _ _ ~_ _ ._ ~ _ .. ~ ~ ~, __ a__ ~
_ ..__._ _ .__ __ _ . ~ ..
68
~::. g
~
117(?RI2ISC)\ BIZ~~~\'N :~RGIZ ~\. I:3RI2~, I.I.C'

CEftTIP1ED PUSLIG ACCOt1NTANTS AND ADViSQRS
St. Jude Medical S.C., Inc. v. 1 Private Florida Arbitration

Medtronic USA, Inc. ' Court: 11th Judicial Circuit,
'; (Defendant -2012) ~ Miami-Dade, FL
68
Exhibit B
68
Exhibit B
List of documents reviewed:
1. Julin et al. v. Chiquita Brands International, Inc. (Chiquita), No. 08-20641-CIV-MARRA.

2. Pescatore et al. v. Chiquita, No. 09-80683-CIV-MARRA.
3. Sparrow v. Chiquita, No. 11-80402-CIV-MARRA.
4. NTMs website (https://usa.ntm.org/about).
5. USA v. Chiquita, Information, March 13, 2007.
6. Depositions of Charles Keiser, dated April 13, 2016 and March 31, 2009.
7. Testimony of Charles Keiser, Vol 33, dated November 3, 2010.
8. Deposition of John Ordman 30(b)(6), April19 and April 20, 2016.
9. USA v. Chiquita, March 19, 2007 Factual Proffer.
10. AICPA Code of Professional Conduct, 1.295.140.
11. AICPA Forensic & Valuation Services, Serving as an Expert Witness or Consultant, Practice Aid,
Page 15.
12. AICPA Statement on Standards for Consulting Services No 1.
13. AICPA Consulting Services, Special Report 03-1.
14. 18 U.S. Code 2339A - Providing material support to terrorists.
15. Refer to Chiquitas Annual Reports from 1989 to 2008.
16. Selected Chiquita bank statements from 1989 to May 1999.
17. DOJ Press Release dated March 19, 2007
https://www.justice.gov/archive/opa/pr/2007/March/07_nsd_161.html.
18. Affidavit of John Ordman, dated February 22, 2009.
19. Document CBI-V1-001-000135 to 150.
20. Document CBI-ATA-02203022.
21. Juan Manuel Alvarado - Interview Notes, dated June 27, 1999.
22. Document CBI-ATA00053054.
23. Affidavit of Charles Kaiser, dated February 18, 2009.
24. Document CBI-V1-003-000014.
25. Document CBI-V1-003-00016.
26. Document CBI-VI-001-003855.
27. Document CBI-VI-001-003941.
28. Memorandum from Wilfred White dated January 30, 1996.
30. Document CBI-S4-009-047386.
31. General Managers Fund Back-Up Documentation, Status as of October 21, 1992.
32. Document CBI-V1-001-003872.
33. Chiquita Interviews of Wilfred W. White, November 12, 1998, Document CBI-ATA-00053225.
34. Deposition of John Olivo, dated December 15, 1999.
35. John Olivo Interview Notes, dated March 14, 1999.
38. Presentation on Warehouse Permit Renewal Payments, September 18, 1998, Document CBI-ATA-00076443.
39. Chiquita Audit Committee Meeting Minutes.
40. CBI-V1-603-000281-3.
41. Chiquita Interview of Wilfred White dated December 29, 1998.
42. CBI-V1-001-003907 to 39.
43. CBI-V1-001-001656.
44. Deposition of Robert Kistinger, 1999.
45. Deposition of Mark Blackham, dated May 13, 2016.
46. Memo of Mark Blackham, dated January 4, 1994.
47. 18 U.S.C. Code Section 2333 civil remedies, subsection (a).
68
48. Investor Bulletin: SEC Investigations, U.S. Investor Alerts and General Overview of Investigatory Procedures.
49. Litigation Release No. 17169, U.S. SEC, October 3, 2001.
50. Deposition of Jorge Forton, dated April 17, 1999.
51. Banadex FCPA Compliance Reports.
52. Chiquitas correspondence/memos with payment requests.
53. Memos and correspondences accounting for history of payments made.
54. Banadex Voucher payments (Form 1016).
55. Defendant Chiquitas Amended and Supplemental Responses and Objections to The ATA Plaintiffs First Set
of Interrogatories dated April 13, 2016.
56. Defendant Chiquitas Amended Responses and Objections to The ATA Plaintiffs First Set of Interrogatories
dated April 27, 2016.
57. National Unions Summary of Chiquitas Summary of Colombian Payments. CBI-ATA-02204674-4729.
58. Schedules of security payments for Santa Marta and Uraba 1997 through 2003, CBI-V1-001-001064-1076.
59. NTMs Daily General Ledgers Details of the accounts 1.324 and 1.325.
60. NTMs Summary Treasury Reports.
61. Summary Schedule Hostage Crisis Fund for accounts 1.324 and 1.325
62. Exchange rates from Colombians Central Bank (http://www.banrep.gov.co).
63. www.state.gov/j/ct/rls/other/des/123085.htm
64. PCAOB Auditing Standards No. 2 An Audit of Internal Control Over Financial Reporting Performed in
Conjunction with an Audit of the Financial Statements.
65. COSO Standards.
66. Auditing Standards AU Section 317, Illegal Acts by Clients.
67. http://www.iii.org/article/insuring-against-employee-kidnapping-and-ransom.
68. Recordkeeping and Internal Controls Provisions Section 13(b) of the Securities Exchange Act of 1934.
69. AU Section 316 Consideration of Fraud in Financial Statement Audit.
70. Au Section 333 Management Representations.
68
Exhibit C
68
Chiquita's Payments to Guerilla Organizations per Chiquita's Responses to First Set of Interrogatories EXHIBIT C
IN RE CHIQUITA
Total in
Total in US
Entity Colombian
Dollars
Pesos
FARC 260,500,000 $ 279,111
CRS 25,950,000 34,814
ELN 185,500,000 221,986
EPL (Caraballo) 27,500,000 38,826
Unidentified 156,500,000 146,681
655,950,000 $ 721,418
68
Exhibit D
68
Chiquita's Payments to FARC per Chiquita's Responses to First Set of Interrogatories EXHIBIT D
IN RE CHIQUITA
Amount in
Exchange Amount in
Date Colombian
rate US Dollars
Pesos
1989 N/A $ 10,000
10/2/1992 1,000,000 703.08 1,422
10/20/1992 1,000,000 707.35 1,414
11/1992 500,000 707.80 706
1992 1,500,000 680.83 2,203
5/15/1993 2,000,000 780.79 2,562
6/15/1993 2,000,000 784.80 2,548
7/13/1993 2,000,000 794.67 2,517
8/30/1993 2,000,000 807.53 2,477
11/3/1993 3,000,000 816.70 3,673
12/9/1993 2,000,000 800.60 2,498
1/20/1994 2,000,000 814.56 2,455
3/4/1994 6,000,000 818.70 7,329
3/28/1994 3,000,000 821.14 3,653
4/7/1994 5,000,000 822.57 6,079
5/11/1994 5,000,000 841.33 5,943
6/20/1994 5,000,000 826.61 6,049
7/11/1994 5,000,000 822.34 6,080
8/22/1994 5,000,000 813.76 6,144
10/4/1994 4,000,000 843.65 4,741
11/1/1994 8,000,000 837.62 9,551
2/17/1995 4,000,000 848.90 4,712
3/21/1995 5,000,000 863.77 5,789
4/4/1995 4,000,000 876.00 4,566
4/10/1995 5,000,000 869.15 5,753
5/23/1995 5,000,000 871.11 5,740
5/31/1995 5,000,000 876.36 5,705
6/18/1995 5,000,000 873.91 5,721
7/14/1995 4,000,000 892.82 4,480
9/5/1995 1,000,000 957.54 1,044
10/12/1995 7,000,000 981.26 7,134
11/13/1995 10,000,000 999.77 10,002
12/18/1995 15,000,000 988.94 15,168
1/27/1996 1,000,000 1,026.89 974
1/27/1996 1,000,000 1,026.89 974
1/27/1996 1,000,000 1,026.89 974
1/27/1996 1,000,000 1,026.89 974
1/27/1996 1,000,000 1,026.89 974
2/2/1996 5,000,000 1,024.89 4,879
3/13/1996 10,000,000 1,044.07 9,578
4/7/1996 10,000,000 1,046.92 9,552
5/14/1996 7,000,000 1,065.78 6,568
7/22/1996 1,000,000 1,061.02 942
8/12/1996 3,000,000 1,040.68 2,883
10/9/1996 5,000,000 1,010.32 4,949
10/19/1996 6,000,000 1,016.87 5,900
1/23/1997 5,000,000 1,031.02 4,850
4/15/1997 10,000,000 1,058.73 9,445
6/2/1997 10,000,000 1,077.09 9,284
7/21/1997 2,000,000 1,105.33 1,809
8/1/1997 10,000,000 1,112.53 8,989
8/1/1997 5,000,000 1,112.53 4,494
9/1/1997 10,000,000 1,172.28 8,530
10/20/1997 10,000,000 1,264.70 7,907
3/9/1998 2,000,000 1,353.71 1,477
5/3/1998 4,000,000 1,364.07 2,932
5/3/1999 5,500,000 1,611.48 3,413
260,500,000 $ 279,111
68
Exhibit E
68
Chiquita's Payments to Other Guerilla Organizations per Chiquita's Responses to First Set of Interrogatories EXHIBIT E
IN RE CHIQUITA
Amount in
Exchange Amount in US
Date Colombian Entity
rate Dollars
Pesos
6/1992 150,000 677.17 $ 222 CRS
7/1992 300,000 704.77 426 CRS
9/1992 500,000 697.50 717 CRS
12/1992 20,000,000 733.83 27,254 CRS
7/29/1993 2,000,000 800.42 2,499 CRS
10/13/1993 3,000,000 811.47 3,697 CRS
25,950,000 $ 34,814
1/1992 20,000,000 644.06 $ 31,053 ELN

12/1992 22,500,000 733.83 30,661 ELN
4/5/1993 4,000,000 768.46 5,205 ELN
6/15/1993 4,000,000 784.80 5,097 ELN
7/13/1993 5,000,000 794.67 6,292 ELN
8/30/1993 3,000,000 807.53 3,715 ELN
5/30/1994 10,000,000 840.93 11,892 ELN
8/8/1994 10,000,000 811.91 12,317 ELN
9/14/1994 10,000,000 824.34 12,131 ELN
11/4/1994 10,000,000 833.19 12,002 ELN
3/3/1995 10,000,000 861.33 11,610 ELN
4/5/1995 7,000,000 874.30 8,006 ELN
5/3/1995 5,000,000 880.63 5,678 ELN
5/16/1995 5,000,000 877.45 5,698 ELN
5/31/1995 10,000,000 876.36 11,411 ELN
10/23/1995 1,000,000 988.96 1,011 ELN
11/13/1995 1,000,000 999.77 1,000 ELN
2/18/1996 5,000,000 1,029.50 4,857 ELN
2/18/1996 5,000,000 1,029.50 4,857 ELN
3/13/1996 2,000,000 1,044.07 1,916 ELN
3/13/1996 10,000,000 1,044.07 9,578 ELN
11/18/1996 6,000,000 999.68 6,002 ELN
12/3/1996 20,000,000 1,000.09 19,998 ELN
185,500,000 $ 221,986
2/1992 5,000,000 635.67 $ 7,866 EPL (Caraballo)

5/1992 2,000,000 659.77 3,031 EPL (Caraballo)
8/1992 10,000,000 694.17 14,406 EPL (Caraballo)
10/1992 1,500,000 707.80 2,119 EPL (Caraballo)
12/1992 3,000,000 707.80 4,238 EPL (Caraballo)
2/14/1994 500,000 817.78 611 EPL (Caraballo)
5/6/1994 1,500,000 841.25 1,783 EPL (Caraballo)
8/1/1994 2,000,000 815.62 2,452 EPL (Caraballo)
3/9/1995 2,000,000 862.41 2,319 EPL (Caraballo)
27,500,000 $ 38,826
11/29/1993 5,000,000 812.11 $ 6,157 Unidentified

12/9/1993 2,000,000 800.60 2,498 Unidentified
6/21/1995 5,000,000 875.59 5,710 Unidentified
8/18/1995 5,000,000 947.22 5,279 Unidentified
2/20/1996 5,000,000 1,033.41 4,838 Unidentified
3/29/1996 5,000,000 1,048.42 4,769 Unidentified
5/3/1996 6,000,000 1,062.56 5,647 Unidentified
6/18/1996 5,000,000 1,071.35 4,667 Unidentified
7/2/1996 8,000,000 1,069.11 7,483 Unidentified
7/15/1996 6,000,000 1,061.99 5,650 Unidentified
7/30/1996 4,000,000 1,059.18 3,777 Unidentified
9/1/1996 5,000,000 1,042.32 4,797 Unidentified
9/1/1996 3,000,000 1,042.32 2,878 Unidentified
12/5/1996 5,000,000 997.40 5,013 Unidentified
12/16/1996 9,000,000 1,002.95 8,974 Unidentified
2/13/1997 30,000,000 1,075.51 27,894 Unidentified
3/6/1997 3,000,000 1,063.44 2,821 Unidentified
4/1/1997 3,000,000 1,060.93 2,828 Unidentified
5/5/1997 3,000,000 1,068.53 2,808 Unidentified
5/13/1997 3,000,000 1,076.93 2,786 Unidentified
7/4/1997 4,000,000 1,102.84 3,627 Unidentified
7/4/1997 3,000,000 1,102.84 2,720 Unidentified
9/22/1997 4,000,000 1,238.29 3,230 Unidentified
10/8/1997 3,000,000 1,247.51 2,405 Unidentified
11/4/1997 2,500,000 1,284.65 1,946 Unidentified
11/24/1997 10,000,000 1,296.30 7,714 Unidentified
12/22/1997 10,000,000 1,287.51 7,767 Unidentified
156,500,000 $ 146,681
Total 395,450,000 $ 442,307

68
Exhibit F
68
SCHEDULE OF QUESTIONABLE PAYMENTS TO TERRORISTS EXHIBIT F
IN RE: CHIQUITA LITIGATION
CRS
Total Total Total Terrorist [Corriente
Total EPL / Hope
Date Disbursement Terrorist Payments FARC ELN de AUC Santa
Year Requester Payable to Disbursement Caraballo [Esperanza] Convivir
(MM/DD/YY) (Colombian Payments (Colombian (ROJO) (BLUE) Revovacion /Autodefensas Marta
(US Dollar) (GREY) (GREEN)
pesos) (US Dollar) Pesos) Socialista]
(BROWN)
1989 1989 Charles Kaiser/John Ordman 10,000 10,000 N/A 10,000
1/1992 1992 Unidentified 20,000,000 31,053 31,053 20,000,000 31,053
2/1992 1992 Unidentified 5,000,000 7,866 7,866 5,000,000 7,866
5/1992 1992 Unidentified 2,000,000 3,031 3,031 2,000,000 3,031
6/1992 1992 Unidentified 150,000 222 222 150,000 222
7/1992 1992 Unidentified 300,000 426 426 300,000 426
7/2/1992 1992 Unidentified Lloyd Berg 2,000,000 2,880 2,880 2,000,000 2,880
9/1992 1992 Unidentified 500,000 717 717 500,000 717
9/11/1992 1992 Juan Manuel Alvarado 25,250,000 36,303 35,943 25,000,000 21,566 14,377
10/1992 1992 Unidentified 1,500,000 2,119 2,119 1,500,000 2,119
10/20/1992 1992 Juan Manuel Alvarado 1,250,000 1,767 1,414 1,000,000 1,414
11/5/1992 1992 Juan Manuel Alvarado 750,000 1,043 695 500,000 695
12/1992 1992 Unidentified 20,000,000 27,254 27,254 20,000,000 27,254
12/3/1992 1992 Juan Manuel Alvarado Fernando Rios 3,000,000 4,111 4,111 3,000,000 4,111
12/22/1992 1992 Juan Manuel Alvarado Luis Alberto Agudelo 10,000,000 13,572 13,572 10,000,000 13,572
1/27/1993 1993 Josefina de la Rosa Lloyd Berg 150,000 201 201 150,000 201
2/15/1993 1993 Unidentified Lloyd Berg 921,793 1,231 1,231 921,793 1,231
2/17/1993 1993 Juan Manuel Alvarado Juan Manuel Alvarado 2,250,000 3,001 2,668 2,000,000 2,668
3/19/1993 1993 Juan Manuel Alvarado 100,000 130 87 66,667 43 43
4/19/1993 1993 Juan Manuel Alvarado 1,115,000 1,442 888 687,000 162 404 323
5/25/1993 1993 Juan Manuel Alvarado 250,000 320 320 250,000 320
6/15/1993 1993 Juan Manuel Alvarado 8,392,000 10,693 10,194 8,000,000 2,548 5,097 2,548
6/28/1993 1993 Unidentified Lloyd Berg 2,000,000 2,541 2,541 2,000,000 2,541
7/13/1993 1993 Unidentified Juan Manuel Alvarado 9,592,000 12,070 11,325 9,000,000 2,517 6,292 2,517
8/10/1993 1993 Unidentified Lloyd Berg 84,000 105 105 84,000 105
9/15/1993 1993 Unidentified Juan Manuel Alvarado 5,250,000 6,475 2,467 2,000,000 2,467
11/16/1993 1993 Juan Manuel Alvarado Juan Manuel Alvarado 5,450,000 6,729 3,704 3,000,000 3,704
68
CRS
Total EPL / Hope
(BROWN)
3/14/1994 1994 Unidentified 360,000 440 440 360,000 440
3/28/1994 1994 Juan Manuel Alvarado Wagon-lits Turismo 521,309 635 635 521,309 635
6/27/1994 1994 Juan Manuel Alvarado, 10,000,000 12,180 12,180 10,000,000 12,180
Virginia Bonnett
10/4/1994 1994 Juan Manuel Alvarado Juan Manuel Alvarado 6,500,000 7,705 7,112 6,000,000 4,741 2,371
11/16/1994 1994 Juan Manuel Alvarado 1,500,000 1,815 1,815 1,500,000 1,210 605
12/13/1994 1994 Unidentified 5,500,000 6,611 1,202 1,000,000 1,202
2/17/1995 1995 Unidentified Wilson Castano 4,000,000 4,712 4,712 4,000,000 4,712
3/3/1995 1995 Unidentified 10,000,000 11,610 11,610 10,000,000 11,610
3/21/1995 1995 Juan Manuel Alvarado Alberto Rojas 5,500,000 6,367 5,789 5,000,000 5,789
68
CRS
Total EPL / Hope
(BROWN)
3/21/1995 1995 Unidentified 4,500,000 5,210 2,894 2,500,000 2,894
3/22/1995 1995 Unidentified Alberto Rojas 3,125,000 3,609 3,609 3,125,000 3,609
3/22/1995 1995 Unidentified Alberto Rojas 2,604,168 3,008 3,008 2,604,168 3,008
4/4/1995 1995 Unidentified 7,000,000 7,991 7,991 7,000,000 7,991
4/4/1995 1995 Juan Manuel Alvarado Wilson Castano 4,681,000 5,344 4,566 4,000,000 4,566
5/3/1995 1995 Juan Manuel Alvarado, Wilson Castano 6,000,000 6,813 5,678 5,000,000 5,678
Michael Utley
6/18/1995 1995 Juan Manuel Alvarado, Luis Alberto Agudelo 15,400,000 17,622 17,622 15,400,000 17,622
Douglas Walker
12/18/1995 1995 Juan Manuel Alvarado Luis Alberto Agudelo/Wilson 18,000,000 18,201 16,179 16,000,000 15,168 1,011
1/2/1996 1996 Unidentified C
Samuel Diaz 150,000 152 152 150,000 152
1/27/1996 1996 Unidentified Nestor Cardona 1,000,000 974 974 1,000,000 974
1/27/1996 1996 Unidentified Wilson Castano 1,000,000 974 974 1,000,000 974
1/27/1996 1996 Unidentified Wilson Castano 1,000,000 974 974 1,000,000 974
2/2/1996 1996 Unidentified Wilson Castano 5,000,000 4,879 4,879 5,000,000 4,879
3/13/1996 1996 Juan Manuel Alvarado Wilson Castano 3,000,000 2,873 2,873 3,000,000 2,873
4/7/1996 1996 Juan Manuel Alvarado Rene Osorio 12,800,000 12,226 9,552 10,000,000 9,552
7/22/1996 1996 Juan Manuel Alvarado Luis Alberto Agudelo 1,600,000 1,508 942 1,000,000 942
1/23/1997 1997 Unidentified Luis Alberto Agudelo 5,000,000 4,850 4,850 5,000,000 4,850
68
CRS
Total EPL / Hope
(BROWN)
3/6/1997 1997 Juan Manuel Alvarado Carlos Alberto Loaiza 9,000,000 8,463 5,642 6,000,000 5,642
4/5/1997 1997 Michael Utley Wilson Castano 7,000,000 6,588 6,588 7,000,000 6,588
6/23/1997 1997 Unidentified Punta de Piedra 34,956,012 32,177 32,177 34,956,012 32,177
8/1/1997 1997 Juan Manuel Alvarado Luis Alberto Aguedo 8,500,000 7,640 7,191 8,000,000 7,191
9/1/1997 1997 Juan Manuel Alvarado Luis Alberto Aguedo 14,000,000 11,943 11,090 13,000,000 11,090
10/20/1997 1997 Unidentified Luis Alberto Agudelo 10,000,000 7,907 7,907 10,000,000 7,907
1/26/1998 1998 Juan Manuel Alvarado Dario Laino 10,000,000 7,503 7,503 10,000,000 7,503
2/9/1998 1998 Juan Manuel Alvarado Punta de Piedra 33,307,300 24,738 24,738 33,307,300 24,738
2/16/1998 1998 Juan Manuel Alvarado Dario Laino 10,000,000 7,410 7,410 10,000,000 7,410
3/9/1998 1998 Juan Manuel Alvarado Luis Alberto Agudelo 15,000,000 11,081 10,342 14,000,000 1,477 8,865
5/26/1998 1998 Juan Manuel Alvarado Rene Osorio 1,000,000 717 717 1,000,000 717
8/1/1998 1998 Juan Manuel Alvarado Hermes Hernandez 2,000,000 1,458 1,458 2,000,000 1,458
8/10/1998 1998 Juan Manuel Alvarado Argellimo Alvarez 10,000,000 7,327 7,327 10,000,000 7,327
8/28/1998 1998 Unidentified Hermes Hernandez 1,000,000 695 695 1,000,000 695
68
CRS
Total EPL / Hope
(BROWN)
9/21/1998 1998 Juan Manuel Alvarado La Tagua del Darien 18,854,462 12,291 12,291 18,854,462 12,291
9/21/1998 1998 Juan Manuel Alvarado Alonso Mejia 4,936,441 3,218 3,218 4,936,441 3,218
5/3/1999 1999 Juan Manuel Alvarado Gustavo Gabriel 5,500,000 3,413 3,413 5,500,000 3,413
1,374,148,275 1,355,952 1,232,733 1,258,692,217 355,223 46,550 193,003 27,107 46,766 24,473 227,643 311,969
68
Exhibit F-1
68
SCHEDULE OF OTHER UNIDENTIFIED TERRORIST PAYMENTS EXHIBIT F-1
Amount Paid
Amount Paid
Date (MM/DD/YY) Requester Payable to (Colombian Per-Diem (USD) Other
(US Dollar)
pesos)
9/14/1992 Unidentified Juan Manuel Alvarado 4,000,000 5,744 - 5,744

12/14/1992 Rene Osorio 1,000,000 1,370 - 1,370
5/11/1993 Juan Manuel Alvarado 3,000,000 3,857 - 3,857
7/30/1993 Juan Manuel Alvarado Rene Osorio 6,000,000 7,490 - 7,490
0/0/1994 Unidentified Carlos Jimenez 515,460 632 - 632
3/29/1994 Unidentified 575,100 701 - 701
4/5/1994 Unidentified Wilson Castano 7,000,000 8,534 - 8,534
8/8/1994 Unidentified 10,000,000 12,317 - 12,317
3/22/1995 Unidentified Rene Osorio 10,300,000 11,895 - 11,895
4/26/1995 Juan Manuel Alvarado 800,000 913 - 913
4/28/1995 Juan Manuel Alvarado Juan Manuel Alvarado 700,000 799 - 799
5/22/1995 Unidentified Jesus Alberto Rojas 833,334 954 - 954
5/22/1995 Unidentified Jesus Alberto Rojas 1,250,000 1,431 - 1,431
6/14/1995 Juan Manuel Alvarado Juan Manuel Alvarado 3,500,000 3,999 - 3,999
6/21/1995 Unidentified Nestor Cardona 5,000,000 5,710 - 5,710
9/5/1995 Juan Manuel Alvarado Luis Alberto Agudelo 500,000 522 - 522
10/1/1995 Unidentified Luis Alberto Agudelo 2,500,000 2,586 - 2,586
10/4/1995 Juan Manuel Alvarado 4,799,800 [2] 4,914 1,169.17 2,836
1/17/1996 Unidentified Humberto Munoz 1,000,000 988 - 988
2/26/1996 Juan Manuel Alvarado Hermes Hernandez 1,750,000 1,688 - 1,688
3/28/1996 Juan Manuel Alvarado Wilson Castano 5,000,000 4,765 - 4,765
7/2/1996 Juan Manuel Alvarado Wilson Castano 10,000,000 [1] 9,354 935.36 8,418
7/15/1996 Juan Manuel Alvarado Luis Alberto Agudelo 9,150,000 [3] 8,616 612.06 5,650
9/1/1996 Juan Manuel Alvarado Luis Alberto Agudelo Rene 14,000,000 [4] 13,432 479.70 8,635
10/4/1996 Juan Manuel Alvarado Juan Manuel Alvarado 1,000,000 985 - 985
11/5/1996 Juan Manuel Alvarado Carlos Alberto Loaiza 3,500,000 3,502 3,502
11/5/1996 Juan Manuel Alvarado Luis Alberto Agudelo 5,000,000 5,003 - 5,003
11/5/1996 Juan Manuel Alvarado Maria Eugenia Correa 5,300,000 5,303 - 5,303
12/5/1996 Juan Manuel Alvarado Luis Alberto Agudelo - J. Manuel 7,500,000 7,520 - 7,520
1/23/1997 Unidentified N/A 3,000,000 2,910 - 2,910
2/1/1997 Unidentified Carlos Alberto Loaiza 3,000,000 2,820 - 2,820
2/13/1997 Juan Manuel Alvarado Luis Alberto Agudelo 10,000,000 9,298 - 9,298
68
SCHEDULE OF OTHER UNIDENTIFIED TERRORIST PAYMENTS EXHIBIT F-1
Amount Paid
Amount Paid
Date (MM/DD/YY) Requester Payable to (Colombian Per-Diem (USD) Other
(US Dollar)
pesos)

10/11/1997 Unidentified Carlos Alberto Loaiza 2,800,000 2,213 - 2,213
12/22/1997 Unidentified N/A 10,000,000 7,767 - 7,767
5/5/1998 Juan Manuel Alvarado Carlos Loaiza 3,400,000 2,483 - 2,483
7/13/1998 Juan Manuel Alvarado Carlos Alberto Loaiza 5,000,000 3,638 - 3,638
10/9/1998 Juan Manuel Alvarado Alonso Mejia 10,000,000 6,299 - 6,299
12/31/1998 Unidentified Alvaro Acevedo Gonzalez 23,353,456 15,144 - 15,144
382,272,984 380,276 3,196 369,500
[1]Outoftheoriginal10millionColombianPesos,1millionwasexcludedfromtheothercategoryasitwascategorizedasnonextortionpayment.
[2]Outoftheoriginal4.8millionColombianPesos,2.3millionwasexcludedfromtheothercategoryasitwascategorizedasnonextortionpayment.
[3]Outoftheoriginal9.1millionColombianPesos,3.15millionwasexcludedfromtheothercategoryasitwascategorizedasnonextortionpayment.
[4]Outoftheoriginal14millionColombianPesos,5millionwasexcludedfromtheothercategoryasitwascategorizedasnonextortionpayment.
OtherpaymentsUSD
TotalOtherPayments 369,500
FARCAllocation% 28.8%
FARCAllocation 106,416
OtherpaymentsCOP
TotalOtherPayments 382,272,984
FARCAllocation% 28.8%
FARCAllocation 110,094,619
68
EXHIBIT F-2
68
SCHEDULE OF QUESTIONABLE PAYMENTS TO TERRORISTS
IN RE: CHIQUITA LITIGATION EXHIBIT F-2
ALL AMOUNTS IN COLOMBIAN PESOS
Total Total Terrorist CRS [Corriente de

EPL / Hope
Date Disbursement Payments FARC Revovacion
Year Requester Payable to Caraballo ELN (BLUE) [Esperanza] Subtotal AUC /Autodefensas Santa Marta Convivir
(MM/DD/YY) (Colombian (Colombian (ROJO) Socialista]
(GREY) (GREEN)
pesos) Pesos) (BROWN)
1989 1989 Charles Kaiser/John Ordman N/A 10,000 10,000

1/1992 1992 Unidentified 20,000,000 20,000,000 20,000,000 20,000,000
2/1992 1992 Unidentified 5,000,000 5,000,000 5,000,000 5,000,000
5/1992 1992 Unidentified 2,000,000 2,000,000 2,000,000 2,000,000
6/1992 1992 Unidentified 150,000 150,000 150,000 150,000
7/1992 1992 Unidentified 300,000 300,000 300,000 300,000
7/2/1992 1992 Unidentified Lloyd Berg 2,000,000 2,000,000 - 2,000,000
9/1992 1992 Unidentified 500,000 500,000 500,000 500,000
9/11/1992 1992 Juan Manuel Alvarado 25,250,000 25,000,000 15,000,000 10,000,000 25,000,000
10/1992 1992 Unidentified 1,500,000 1,500,000 1,500,000 1,500,000
10/20/1992 1992 Juan Manuel Alvarado 1,250,000 1,000,000 1,000,000 1,000,000
11/5/1992 1992 Juan Manuel Alvarado 750,000 500,000 500,000 500,000
12/1992 1992 Unidentified 20,000,000 20,000,000 20,000,000 20,000,000
12/3/1992 1992 Juan Manuel Alvarado Fernando Rios 3,000,000 3,000,000 3,000,000 3,000,000
12/22/1992 1992 Juan Manuel Alvarado Luis Alberto Agudelo 10,000,000 10,000,000 - 10,000,000
1/27/1993 1993 Josefina de la Rosa Lloyd Berg 150,000 150,000 - 150,000
2/15/1993 1993 Unidentified Lloyd Berg 921,793 921,793 - 921,793
2/17/1993 1993 Juan Manuel Alvarado Juan Manuel Alvarado 2,250,000 2,000,000 2,000,000 2,000,000
3/19/1993 1993 Juan Manuel Alvarado 100,000 66,667 33,333 33,333 66,667
4/19/1993 1993 Juan Manuel Alvarado 1,115,000 687,000 125,000 312,000 250,000 687,000
6/15/1993 1993 Juan Manuel Alvarado 8,392,000 8,000,000 2,000,000 4,000,000 2,000,000 8,000,000
6/28/1993 1993 Unidentified Lloyd Berg 2,000,000 2,000,000 - 2,000,000
7/13/1993 1993 Unidentified Juan Manuel Alvarado 9,592,000 9,000,000 2,000,000 5,000,000 2,000,000 9,000,000
8/10/1993 1993 Unidentified Lloyd Berg 84,000 84,000 - 84,000
9/15/1993 1993 Unidentified Juan Manuel Alvarado 5,250,000 2,000,000 2,000,000 2,000,000
11/16/1993 1993 Juan Manuel Alvarado Juan Manuel Alvarado 5,450,000 3,000,000 3,000,000 3,000,000
2/21/1994 1994 Juan Manuel Alvarado 278,718 278,716 - 278,716
68
EPL / Hope
(GREY) (GREEN)

3/14/1994 1994 Unidentified 360,000 360,000 360,000 360,000
3/28/1994 1994 Juan Manuel Alvarado Wagon-lits Turismo 521,309 521,309 - 521,309
4/4/1994 1994 Juan Manuel Alvarado 2,932,728 2,932,728 - 2,932,728
6/27/1994 1994 Juan Manuel Alvarado, 10,000,000 10,000,000 - 10,000,000
Virginia Bonnett
10/4/1994 1994 Juan Manuel Alvarado Juan Manuel Alvarado 6,500,000 6,000,000 4,000,000 2,000,000 6,000,000
11/16/1994 1994 Juan Manuel Alvarado 1,500,000 1,500,000 1,000,000 1,000,000 500,000
12/13/1994 1994 Unidentified 5,500,000 1,000,000 1,000,000 1,000,000
2/17/1995 1995 Unidentified Wilson Castano 4,000,000 4,000,000 4,000,000 4,000,000
3/3/1995 1995 Unidentified 10,000,000 10,000,000 10,000,000 10,000,000
3/21/1995 1995 Juan Manuel Alvarado Alberto Rojas 5,500,000 5,000,000 5,000,000 5,000,000
3/21/1995 1995 Unidentified 4,500,000 2,500,000 2,500,000 2,500,000
3/22/1995 1995 Unidentified Alberto Rojas 3,125,000 3,125,000 0 3,125,000
3/22/1995 1995 Unidentified Alberto Rojas 2,604,168 2,604,168 - 2,604,168
4/4/1995 1995 Unidentified 7,000,000 7,000,000 7,000,000 7,000,000
4/4/1995 1995 Juan Manuel Alvarado Wilson Castano 4,681,000 4,000,000 4,000,000 4,000,000
5/3/1995 1995 Juan Manuel Alvarado, Wilson Castano 6,000,000 5,000,000 5,000,000 5,000,000
Michael Utley
68
EPL / Hope
(GREY) (GREEN)

6/18/1995 1995 Juan Manuel Alvarado, Luis Alberto Agudelo 15,400,000 15,400,000 - 15,400,000
Douglas Walker
12/18/1995 1995 Juan Manuel Alvarado Luis Alberto Agudelo/Wilson 18,000,000 16,000,000 15,000,000 15,000,000 1,000,000
1/2/1996 1996 Unidentified C
Samuel Diaz 150,000 150,000 - 150,000
1/27/1996 1996 Unidentified Nestor Cardona 1,000,000 1,000,000 1,000,000 1,000,000
3/13/1996 1996 Juan Manuel Alvarado Luis Alberto Agudelo 10,000,000 10,000,000 10,000,000 10,000,000
3/13/1996 1996 Juan Manuel Alvarado Wilson Castano 3,000,000 3,000,000 3,000,000 3,000,000
4/7/1996 1996 Juan Manuel Alvarado Rene Osorio 12,800,000 10,000,000 10,000,000 10,000,000
1/23/1997 1997 Unidentified Luis Alberto Agudelo 5,000,000 5,000,000 5,000,000 5,000,000
3/6/1997 1997 Juan Manuel Alvarado Carlos Alberto Loaiza 9,000,000 6,000,000 - 6,000,000
4/5/1997 1997 Michael Utley Wilson Castano 7,000,000 7,000,000 - 7,000,000
6/23/1997 1997 Unidentified Punta de Piedra 34,956,012 34,956,012 - 34,956,012
68
EPL / Hope
(GREY) (GREEN)

8/1/1997 1997 Juan Manuel Alvarado Luis Alberto Aguedo 8,500,000 8,000,000 8,000,000 8,000,000
9/1/1997 1997 Juan Manuel Alvarado Luis Alberto Aguedo 14,000,000 13,000,000 13,000,000 13,000,000
10/20/1997 1997 Unidentified Luis Alberto Agudelo 10,000,000 10,000,000 - 10,000,000
1/26/1998 1998 Juan Manuel Alvarado Dario Laino 10,000,000 10,000,000 - 10,000,000
2/9/1998 1998 Juan Manuel Alvarado Punta de Piedra 33,307,300 33,307,300 - 33,307,300
2/16/1998 1998 Juan Manuel Alvarado Dario Laino 10,000,000 10,000,000 - 10,000,000
3/9/1998 1998 Juan Manuel Alvarado Luis Alberto Agudelo 15,000,000 14,000,000 2,000,000 2,000,000 12,000,000
5/26/1998 1998 Juan Manuel Alvarado Rene Osorio 1,000,000 1,000,000 - 1,000,000
8/1/1998 1998 Juan Manuel Alvarado Hermes Hernandez 2,000,000 2,000,000 - 2,000,000
8/10/1998 1998 Juan Manuel Alvarado Argellimo Alvarez 10,000,000 10,000,000 - 10,000,000
8/28/1998 1998 Unidentified Hermes Hernandez 1,000,000 1,000,000 - 1,000,000
9/21/1998 1998 Juan Manuel Alvarado La Tagua del Darien 18,854,462 18,854,462 - 18,854,462
9/21/1998 1998 Juan Manuel Alvarado Alonso Mejia 4,936,441 4,936,441 - 4,936,441
5/3/1999 1999 Juan Manuel Alvarado Gustavo Gabriel 5,500,000 5,500,000 5,500,000 5,500,000
1,374,148,275 1,258,692,217 329,378,333 34,000,000 164,473,333 22,372,000 35,700,000 585,923,667 21,322,638 242,794,145 408,661,767
68
Exhibit G
68
Calculation of Chiquita's Payments Made Related to Banadex Banana Shipments EXHIBIT G

Payments to AUC Based on Banana Boxes Shipped : 1999 to 2003
IN RE CHIQUITA
Uraba
1999 2000 2001 2002 2002 Additional 2003
Month Boxes Rate US$ Boxes Rate US$ Boxes Rate US$ Boxes Rate US$ Boxes Rate US$ Boxes Rate US$
January 811,900 0.020 $ 16,238 591,229 0.020 $ 11,825 571,830 0.025 $ 14,296 114,500 0.025 $ 2,863 634,472 0.03 $ 17,448
February 732,602 0.020 14,652 627,950 0.020 12,559 602,673 0.025 15,067 - - 706,647 0.03 19,433
March 2,228,817 0.010 $ 22,288 1,059,273 0.020 21,185 907,533 0.020 18,151 827,877 0.025 20,697 - - 1,023,775 0.03 28,154
April 693,822 0.010 6,938 711,531 0.020 14,231 631,912 0.020 12,638 677,412 0.025 16,935 436,174 0.025 10,904 737,835 0.03 20,290
May 810,063 0.010 8,101 696,883 0.020 13,938 607,255 0.020 12,145 590,131 0.025 14,753 479,590 0.025 11,990 682,736 0.03 18,775
June 820,188 0.010 8,205 815,979 0.020 16,320 639,344 0.020 12,787 664,398 0.025 16,610 - - 611,540 0.03 16,817
July 596,573 0.015 8,949 696,147 0.020 13,923 467,189 0.020 9,344 454,030 0.025 11,351 - -
August 694,900 0.015 10,424 731,184 0.020 14,624 576,309 0.020 11,526 596,658 0.025 14,916 - -
September 1,026,100 0.015 15,392 904,144 0.020 18,083 844,512 0.025 21,113 1,007,230 0.025 25,181 - -
October 929,900 0.015 13,949 740,267 0.020 14,805 852,506 0.025 21,313 1,019,048 0.025 25,476 - -
November 811,555 0.015 12,173 791,267 0.020 15,825 824,173 0.025 20,604 933,418 0.025 23,335 - -
December 925,268 0.015 13,879 800,000 0.020 16,000 894,239 0.025 22,356 929,647 0.025 23,241 - -
Total $ 120,297 $ 189,824 $ 186,360 $ 221,859 $ 25,757 $ 120,918
Santa Marta
1999 2000 2001 2002 2003
Month US$ Boxes Rate US$ Boxes Rate US$ Boxes Rate US$ Boxes Rate US$
January 6,620.76 204,178 0.030 $ 6,125 205,141 0.030 $ 6,154 277,539 0.03 $ 8,326 245,875 0.03 $ 7,376
February 14,568.63 189,159 0.030 5,675 218,338 0.030 6,550 277,080 0.03 8,312 196,146 0.03 5,884
March 244,543 0.030 7,336 270,351 0.030 8,111 360,458 0.03 10,814 251,751 0.03 7,553
April 3,427.99 238,251 0.030 7,148 245,022 0.030 7,351 223,142 0.03 6,694 204,643 0.03 6,139
May 228,857 0.030 6,866 204,847 0.030 6,145 209,752 0.03 6,293 189,358 0.03 5,681
June 8,993.46 347,000 0.030 10,410 217,385 0.030 6,522 199,997 0.03 6,000 242,574 0.03 7,277
July 8,383.54 250,900 0.030 7,527 193,254 0.030 5,798 159,129 0.03 4,774 192,984 0.03 5,790
August 1,349.31 291,200 0.030 8,736 182,440 0.030 5,473 151,723 0.03 4,552 231,266 0.03 6,938
September 15,923.61 293,200 0.030 8,796 243,743 0.030 7,312 265,975 0.03 7,979 313,265 0.03 9,398
October 242,100 0.030 7,263 218,519 0.030 6,556 202,757 0.03 6,083
November 20,160.36 215,200 0.030 6,456 199,317 0.030 5,980 197,111 0.03 5,913
December 234,000 0.030 7,020 267,645 0.030 8,029 271,820 0.03 8,155
Total $ 79,428 $ 89,358 $ 79,980 $ 83,894 $ 62,036
Year Count Total US $

1999 18 $ 199,724
2000 24 279,181
2001 24 266,340
2002 27 331,510
2003 15 182,953
108 $ 1,259,709
68
Exhibit H
NTM EXPENSES RELATED TO COLOMBIA & PANAMA HOSTAGES
68 EXHIBIT H
IN RE CHIQUITA
Account No. 1.325 1.324 1.324 1.324 1.324 1.324 1.324 1.324 1.324 1.324 1.324
Panama & Panama & Panama & Panama & Panama & Panama & Panama & Panama & Panama & Panama &
Country: Panama Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia
3/93-4/94 2/94-12/94 1995 1996 1997 1998 1999 2000 2001 2002 2003 TOTAL
EXPENSES
From Summary Treasurers Report $ 144,861 $ 13,155 $ 158,016

Equipment and Other Expenses 393 $ - $ - $ 2,183 $ 2,532 $ 454 $ 2,673 $ 249 $ 23,380 $ - 31,865
Brown Gold Magazine / Conf 401 654 458 1,326 1,089 722 540 324 245 39 5,798
Food 5,732 (1,497) 626 275 813 963 396 2,511 - 9,818
Cleaning 529 - - - - - - - - 529
Postage 735 809 440 1,964 1,179 1,274 262 70 2,060 1 8,794
Express Mail 88 - 364 272 231 161 76 - 1,192
Lodging, Elec,Water / Sewer Exp. 4,193 5,238 4,614 6,404 4,197 3,851 2,763 3,809 35,070
Supplies 343 63 40 155 176 181 18 141 1,116
Office Supplies, Books, Magazines 3,840 840 331 655 396 1,520 37 (120) 7,498
Phone 24,261 16,284 11,672 4,683 9,187 13,197 4,393 3,184 2,505 1,353 90,718
Fax, Modem, E-Mail 1,256 1,295 954 345 - 259 12 70 4,191
Us Travel Exp 3,856 8,394 (9) 21,148 40,402 21,162 7,554 11,044 23,410 136,961
Overseas Travel Exp 35,559 19,925 26,320 44,887 30,429 26,957 20,062 28,515 232,652
General Exp., Fees 1,429 15,692 1,683 711 1,901 652 5,275 5,056 2,399 1,148 35,946
Intrabranch Phone Exp 46 224 - - - - - - 270
Intrabranch Equipt, Software - 355 251 1,701 103 286 - 2,695
Conf & Challenge - 7 16 63 443 155 7 40 731
Intrabranch Printing Exp 2,672 5,583 3,537 12,061 5,927 10,037 14,356 6,699 15 176 61,063
Intrabranch Postage & E-Mail Exp 197 854 789 2,020 3,223 2,958 2,174 448 538 54 13,255
$ 144,861 $ 98,684 $ 74,720 $ 52,086 $ 100,852 $ 102,226 $ 84,787 $ 60,599 $ 62,040 $ 54,553 $ 2,772 $ 838,179

Chiquita FARC Accounting Expert Report

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Case 0:08-md-01916-KAM Document 1324-1 Entered on FLSD Docket 04/03/2017 Page 1 of

UNITED STATES DISTRICT COURT

IN RE: CHIQUITA BRANDS

This Document Relates To:

TANIA JULIN, et al.

CHIQUITA BRANDS INTERNATIONAL, INC.,

OLIVIA PESCATORE, et al.

CHIQUITA BRANDS INTERNATIONAL, INC.,

GREGORY SPARROW, ON BEHALF OF

CHIQUITA BRANDS INTERNATIONAL, INC.,

EXPERTISE AND QUALIFICATIONS .................................................................................................. 3

EXPERTISE AND QUALIFICATIONS

2. I received a Bachelor of Business Administration degree from Florida International

3. I have testified as an expert in damages involving a variety of litigation and arbitration

Curriculum Vitae is included as Composite Exhibit A to this Report.

Plaintiffs (Counsel), 1 to provide expert opinions regarding:

from 1989 to 2003;

Chiquita concealed its sensitive payments to terrorist organizations;

c. Knowledge of Chiquitas senior executives regarding the sensitive payments to terrorist

Panama by the FARC; and

of the documents we reviewed is attached as Exhibit B to this Report.

EXECUTIVE SUMMARY OF MY OPINIONS

and generally accepted accounting principles.

executives authorized Chiquita to make payments to terrorists.

translation of the Bible into their local language.3

Company, United Fruit Company, and the United Brands Corporation.5

banana-producing division. In June 2004, Chiquita sold Banadex.7

them as payments to terrorists.11

BASIS FOR OPINIONS AND METHODOLOGY

evidential matter and to interpret and communicate findings.12

can be employed in a case, including, among others:

(g) Evaluating and analyzing spending and expenses.13

obtained, and conclusions reached by the practitioner."14

Use of Sufficient Facts or Data

professional services; and

basis for conclusions or recommendations in relation to any professional services performed.15

methods to sufficient relevant data."

critical analysis of all work performed."

for any professional services performed.

(d) Paragraph 24 further expands on the concept of sufficient relevant data16:

Tests for Identifying Payments to Terrorist Organizations

Department of States list of terrorist organizations as provided on its website.18

Internal Control Programs

disbursements and the appropriate transparent recording of transactions.19

significant risks associated with material revenue or earnings.20

complete the audit of the Companys financial statements.22

accounting principles relating to amounts, classification, manner of presentation or disclosure.23

MY ANALYSIS AND OPINIONS

HISTORY OF CHIQUITA IN COLOMBIA

organizations. The right-wing/fascist terrorist organization was known as the AUC.

payment to the FARC was on May, 1999.34

paid for by the Company.36

organizations operating in Colombia, including ELN and the EPL.39

as a cents per box cost.41

Considering Testimony and an Interview of Chiquita Employees. Using total Colombian

Relying on Chiquitas Interrogatory Responses. Compiling terrorist payment history

information produced by Chiquita in response to interrogatories concerning the terrorist

payments it made to the FARC and other groups in Colombia; and

Compiling Terrorist Payment Documentation Produced by Chiquita. Reading, compiling

terrorist groups in Colombia.

Considering Testimony and an Interview of Chiquitas Employees

Relying on Chiquitas Interrogatory Responses

Chiquita had an Other or Unidentified category for certain payments.

for the respective period of $279,111. Refer to Exhibit D.

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