Posts Tagged With Corruption / Bribery

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Fresenius Medical Care Agrees to Pay $231 Million in Criminal Penalties and Disgorgement to Resolve Foreign Corrupt Practices Act Charges

On March 29, 2019, DOJ officials announced a non-prosecution agreement (“NPA”) with Germany-based Fresenius Medical Care AG & Co. KGaA (“Fresenius”) to resolve a seven-year DOJ and SEC investigation into FCPA violations.  Fresenius admitted to paying bribes to public officials to obtain or retain business, failing to implement reasonable internal accounting controls, and failing to maintain accurate books and records in connection with its activities in several countries in Africa and the Middle East between
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Patrick Ho, Former Head of Organization Backed by Chinese Energy Conglomerate, Sentenced to Three Years in Prison for International Bribery and Money Laundering Offenses

On March 25, 2019, Patrick Ho was sentenced to three years in prison for his role in a scheme to bribe officials of Chad and Uganda.  Ho, the former head of a non governmental organization, admitted to paying the bribes to obtain business advantages for CEFC China Energy Company Limited (“CEFC China”), an international energy and banking conglomerate.  The schemes involved a $2 million bribe to the then-president of Chad to obtain oil rights, as
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Mozambique’s Former Finance Minister Indicted Alongside Other Former Mozambican Officials, Business Executives, and Investment Bankers in Alleged $2 Billion Fraud and Money Laundering Scheme that Victimized U.S. Investors

On March 7, 2019, a four-count indictment was unsealed charging three former senior Mozambican government officials, investment bankers, and business executives in connection with a $2 billion fraud and money laundering scheme.  According to the indictment, between 2013 and 2016 the defendants organized loans made to entities controlled by the Mozambican government.  The defendants allegedly defrauded U.S. investors by misrepresenting the purpose of the loans and the ability of Mozambique and its state-owned entities to
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Mobile TeleSystems PJSC and Its Uzbek Subsidiary Enter into Resolutions of $850 Million with the Department of Justice for Paying Bribes in Uzbekistan

On February 22, 2019, Mobile TeleSystems PJSC (“MTS”), the largest mobile telecommunications company in Russia and an issuer of publicly traded securities in the United States, and its wholly owned Uzbek subsidiary, Kolorit Dizayn Ink LLC (“Kolorit”), entered a deferred prosecution agreement and guilty plea, respectively, to resolve charges based on their roles in a scheme to pay bribes in Uzbekistan.  In total, the entities agreed to pay a penalty of $850 million.

The entities
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Former President and Former Chief Legal Officer of Publicly Traded Fortune 200 Technology Services Company Indicted in Connection with Alleged Multimillion Dollar Foreign Bribery Scheme

On February 14, 2019, a federal grand jury returned an indictment charging two former officers of Cognizant Technology Solutions Corporation (“Cognizant”), a publicly traded Fortune 200 technology services company, in connection with a foreign bribery scheme.  The indictment alleged that, in April 2014, the two officers—the company’s former president and chief legal officer—authorized a $2 million payment to government officials in India to obtain the permit necessary to open a new office campus.  The individuals,
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Former Head of Organization Backed by Chinese Energy Conglomerate Convicted of International Bribery, Money Laundering Offenses

On December 5, 2018, a federal jury in New York convicted the head of a Hong Kong- and Virginia-based nongovernmental organization on seven criminal counts for his participation in a multi-year, multimillion-dollar scheme to bribe top officials of Chad and Uganda to secure business advantages for a Chinese oil and gas conglomerate.  According to trial evidence and court documents, the defendant, Chi Ping Patrick Ho, was involved in two schemes: offering a $2 million bribe
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Venezuelan Billionaire News Network Owner, Former Venezuelan National Treasurer, and Former Owner of Dominican Republic Bank Charged in Money-Laundering Conspiracy Involving over $1 Billion in Bribes

On November 20, 2018, a Venezuelan billionaire who owns the Globovision news network was charged for his alleged role in a billion-dollar currency exchange and money-laundering scheme.  On the same day, a former Venezuelan national treasurer and former owner of Dominican Republic-based Banco Peravia pleaded guilty to charges for their roles in the scheme.  The charges involve a scheme to pay and receive bribes in exchange for the right to conduct foreign exchange transactions on
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Malaysian Financier and Former Banker Indicted for Conspiring to Launder Billions of Dollars in Illegal Proceeds and to Pay Hundreds of Millions of Dollars in Bribes

On November 1, 2018, an indictment was unsealed charging two individuals with conspiring to violate the FCPA and to launder billions of dollars embezzled from Malaysia’s investment development fund, 1Malaysia Development Berhad (“1MDB”), between approximately 2009 and 2014.  The first individual, known as “Jho Low,” is a Malaysian financier, while the other, known as “Roger Ng,” is a former managing director at a New York-based financial institution (the “Financial Institution”).  On the same day that
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Former Executive Director at Venezuelan State-Owned Oil Company, Petroleos De Venezuela, S.A., Pleads Guilty to Role in Billion-Dollar Money Laundering Conspiracy

On October 31, 2018, a former executive director at the Venezuelan state-owned oil company, Petróleos de Venezuela, S.A. (“PDVSA”), pleaded guilty to one count of conspiracy to commit money laundering for his role in a billion-dollar international scheme to launder funds embezzled from PDVSA.  Abraham Edgardo Ortega, who was PDVSA’s Executive Director of Financial Planning, admitted as part of his plea that in his position with PDVSA, he accepted $5 million in bribes to give
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Oil Services CEO and Executive Sentenced to Prison for Roles in Foreign Bribery Scheme

On September 28, 2018, Anthony Mace, a former CEO of SBM Offshore, N.V. (“SBM”), a Dutch oil services company, was sentenced to 36 months in prison and a fine of $150,000.  Robert Zubiate, a former sales and marketing executive for SBM Offshore USA Inc. (“SBM USA”), a U.S.-based subsidiary, was also sentenced to 30 months in prison and a fine of $50,000.  Both Mace and Zubiate pleaded guilty to one count of conspiracy to violate
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Petróleo Brasileiro S.A. – Petrobras Agrees to Pay More Than $850 Million for FCPA Violations

On September 27, 2018, Petróleo Brasileiro S.A. – Petrobras (“Petrobras”), a Brazilian state-owned energy company, entered into a non-prosecution agreement and agreed to pay $853 million to U.S. and Brazilian authorities to resolve an investigation into FCPA violations.  As part of the agreement, Petrobras acknowledged that while its American Depository Shares traded on the New York Stock Exchange, members of the company’s Executive Board (its high-level managers) facilitated millions of dollars in improper payments to
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Financial Advisor Pleads Guilty to Money Laundering Charge in Connection with Bribery Scheme Involving Ecuadorian Officials

On September 11, 2018, Jose Larrea, a Miami-based financial advisor, pleaded guilty to a money laundering conspiracy charge for his involvement in a scheme to bribe officials at Ecuador’s state-owned oil company, PetroEcuador.  Larrea admitted to wiring more than $1 million in funds to conceal the bribes, which an oil services contractor paid to PetroEcuador officials to secure business.  Larrea is the fourth individual to plead guilty in this case.

United States v. Larrea,
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Former FIFA Executive, President of CONMEBOL, and Paraguayan Soccer Official Sentenced to Nine Years in Prison for Racketeering and Corruption Offenses

On August 29, 2018, Juan Ángel Napout—a former FIFA Vice President and president of CONMEBOL, the confederation responsible for soccer in South America—was sentenced to nine years’ imprisonment and ordered to pay a fine of $1 million and forfeit over $3.3 million.   A jury convicted Napout in December 2017 of charges arising from his acceptance of millions of dollars in bribes in exchange for media rights to soccer tournaments.  The tournaments included two cycles of
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Former Swiss Bank Executive Pleads Guilty to Role in Billion-Dollar International Money Laundering Scheme Involving Funds Embezzled from Venezuelan State-Owned Oil Company

On August 22, 2018, the former vice chairman of a Swiss bank pleaded guilty to a money-laundering conspiracy charge in connection with an alleged scheme to launder $1.2 billion that had been embezzled from Venezuelan state-owned oil company PDVSA.  According to his plea agreement, starting in 2016, Matthias Krull assisted several Venezuelan clients in laundering embezzled PDVSA funds through fictitious investment schemes and real estate transactions.  Krull, who was arrested on several additional charges in
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Business Executive Arrested on Foreign Bribery Charges in Connection with Venezuela Bribery Scheme

On July 31, 2018, Jose Manuel Gonzalez Testino (“Gonzalez”) was arrested on foreign bribery charges related to payments he allegedly made to an official at Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (“PDVSA”).  According to the criminal complaint, Gonzalez and a co-conspirator paid at least $629,000 in bribes to a former PDVSA official to secure contracts.  With the arrest of Gonzalez, DOJ has announced charges against 17 individuals, 12 of whom have
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Former Brooklyn Assemblywoman Pleads Guilty to Multiple Fraud Schemes and Witness Tampering

On June 12, 2018, former New York State Assemblywoman Pamela Harris pleaded guilty to two counts of wire fraud, one count of making false statements to the Federal Emergency Management Administration (FEMA), and one count of witness tampering.  DOJ alleged that from 2012 to 2014 Harris defrauded FEMA of nearly $25,000 by submitting falsified lease agreements that allegedly showed she was forced out of her residence by Hurricane Sandy.  In reality, Harris continued to live
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Legg Mason, Inc. Agrees to Pay $64 Million in Criminal Penalties and Disgorgement to Resolve FCPA Charges Related to Bribery of Gaddafi-Era Libyan Officials

On June 4, 2018, DOJ officials announced a non-prosecution agreement with investment management firm Legg Mason, Inc., which agreed to pay $64 million in penalties and disgorgement to resolve FCPA liability related to bribery of officials of Libyan state-owned financial institutions.  According to the agreed-upon statement of facts in the resolution, Legg Mason subsidiary Permal Group Ltd. (“Permal”) partnered with Paris-based multinational bank Société Générale S.A. (“SocGen”) to solicit investment management business from Libyan state-owned
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Société Générale S.A. Agrees to Pay $860 Million in Criminal Penalties for Bribing Gaddafi-Era Libyan Officials and Manipulating LIBOR Rate

On June 4, 2018, U.S. officials announced agreements with Paris-based multinational bank Société Générale S.A. (“SocGen”) and one of its subsidiaries to resolve charges related to a multi-year scheme to bribe Libyan government officials and separate charges related to manipulation of the London Interbank Offered Rate (“LIBOR”).  SocGen and subsidiary SGA Société Générale Acceptance N.V. (“SGA”) agreed to pay more than $1 billion in penalties and disgorgement in connection with the resolutions, and SGA agreed
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Former Venezuelan Official Pleads Guilty to Money Laundering Charge in Connection with Bribery Scheme

On April 19, 2018, Cesar David Rincon Godoy, a former general manager of the procurement subsidiary of Venezuelan state-owned energy company Petroleos de Venezuela S.A. (“PDVSA”), pleaded guilty to one count of conspiracy to commit money laundering.  The charge stemmed from an alleged scheme involving the payment of bribes by the owners of U.S.-based companies to Venezuelan government officials to secure contracts with PDVSA and payment priority on outstanding invoices.  According to admissions made in
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Former Siemens Executive Pleads Guilty to Involvement in $100 Million Bribery of Argentine Government Officials

On March 15, 2018, Eberhard Reichart, the former Technical Manager of Siemens Business Services’ Major Projects division, pleaded guilty to one count of conspiracy to bribe Argentine government officials.  According to court documents, Reichert was involved in a decades-long scheme to pay tens of millions of dollars in bribes to the Argentine officials in order to secure a contract to create national identity cards.  To effectuate payment of the bribes, Reichert and his co-conspirators created
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Transport Logistics International Inc. Agrees to Pay $2 Million Penalty to Resolve Foreign Bribery Case

On March 13, 2018, federal officials announced that they had resolved FCPA charges through a deferred-prosecution agreement (“DPA”) against a Maryland-based nuclear material transportation company.  According to court documents, Transport Logistics International, Inc. (“TLI”) conspired with others to pay more than $1.7 million in bribes to an official of Russian state-owned JSC Techsnabexport to secure improper business advantages and obtain or retain business.  TLI executives reportedly caused fake invoices to be prepared to create the
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Five Former Venezuelan Government Officials Charged in Money Laundering Scheme Involving Foreign Bribery

On February 12, 2018, five former officials of Venezuela’s state-owned energy company were charged with laundering the proceeds of bribes.  According to the indictment, the defendants—all of whom were at the time officials of state-owned Petroleos de Venezuela S.A. (“PDVSA”) or other Venezuelan government instrumentalities—conspired to launder the proceeds of bribes that several of them had solicited from vendors in exchange for offering the vendors preferential treatment in dealings with PDVSA.  The five individuals allegedly
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Former CEO of Detroit Information Technology Company Indicted for Bribery of City Official

On January 30, 2018, John P. Cronan, the Acting Assistant Attorney General of the Criminal Division announced that the former CEO of a Detroit information technology company had been indicted for his role in bribing a public official.  Parimal Mehta, the former CEO, is alleged to have made payments to the former Director of Detroit’s Office of Departmental Technology Services Charles Dodd.  In exchange, he is alleged to have secured favorable treatment for his company—adding
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Former President of Maryland-Based Transportation Company Indicted on 11 Counts Related to Foreign Bribery, Fraud, and Money Laundering Scheme

On January 12, 2018, federal officials announced an 11-count grand jury indictment that was filed against the former co-president of a Maryland-based transportation company specializing in the transportation of nuclear materials in connection with an alleged foreign bribery scheme.  According to the indictment, Maryland resident Mark Lambert conspired with others at the transportation company (“Transportation Company A”) between at least 2009 and October 2014 to bribe an official at JSC Techsnabexport (“TENEX”), a subsidiary of
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