Posts Tagged With Corruption / Bribery

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Philadelphia District Attorney Rufus Seth Williams Pleads Guilty to Federal Bribery Charge

On June 29, 2017, Rufus Seth Williams, the Philadelphia District Attorney, pled guilty to a federal bribery charge for accepting tens of thousands of dollars’ worth of bribes.  According to the allegations in the charging documents and statements made in court proceedings, from July 2010 to May 2015, Williams entered into an agreement with Mohammad N. Ali, a business owner, to perform official acts for Ali, including contacting a Philadelphia police official in order to ... Continue Reading

Middleman Pleads Guilty in Foreign Bribery and Fraud Scheme Involving Potential $800 Million International Real Estate Deal

On June 21, 2017, Malcolm Harris pled guilty to wire fraud and money laundering charges in connection with a corrupt scheme to pay millions of dollars in bribes to a foreign official of a country in the Middle East.  According to the allegations in the charging documents and statements made in court proceedings, from around March 2013 to around May 2015, Harris’s co-defendants Joo Hyun Bahn and his father Ban Ki Sang engaged in a ... Continue Reading

Former U.S. Naval Attaché and Military Advisor to the U.S. Ambassador in the Philippines Sentenced for Taking Bribes in Massive Navy Corruption Scandal

On June 16, 2017, Michael Brooks, a U.S. Navy Captain, was sentenced to forty-one months in prison and ordered to pay a $41,000 fine and $31,000 in restitution for accepting bribes of travel and entertainment, hotel rooms, and the services of prostitutes.  Brooks pled guilty in November to one count of conspiracy to commit bribery and has admitted that, in exchange for the bribes—provided by Singapore-based Glenn Defense Marine Asia (“GDMA”)—Brooks used his influence to ... Continue Reading

Former Managing Director at New York Broker-Dealer Pleads Guilty in “Pay-To-Play” Bribery Scheme Involving Public Pension Fund

On May 30, 2017, Deborah Kelley pled guilty for her involvement in a “pay-to-play” bribery scheme involving the New York State Common Retirement Fund (“NYSCRF”), the third-largest public pension fund in the nation.  Kelley is a former managing director of institutional fixed income sales at a broker-dealer based in New York (“Broker-Dealer”).  According to the allegations in the indictment and statements made during the plea proceeding, Kelley entered into an agreement with Navnoor Kang, Director ... Continue Reading

Acting Principal Deputy Assistant Attorney General Trevor N. McFadden Speaks at American Conference Institute’s 7th Brazil Summit on Anti-Corruption

On May 24, 2017, Acting Principal Deputy Assistant Attorney General Trevor N. McFadden spoke at the American Conference Institute (“ACI”) Brazil Summit on Anti-Corruption.  McFadden’s remarks highlighted recent developments in the Department of Justice’s international cooperation efforts, and provided an update on the Department’s FCPA Pilot Program.  Speaking in São Paulo, McFadden called Brazil one of the United States’ closest allies in fighting corruption, pointing to four global resolutions negotiated by American and Brazilian authorities.  ... Continue Reading

Ramapo Town Supervisor, Christopher St. Lawrence, Found Guilty After Trial of Conspiracy, Securities Fraud, and Wirefraud in Municipal Bond Securities Fraud Case

On May 19, 2017, a federal jury found Christopher St. Lawrence, former Ramapo Town Supervisor, guilty of 20 counts of securities fraud and wire fraud in connection with  municipal bonds issued by the Ramapo Local Development Corporation (“RLDC”) and the Town of Ramapo.  According to the charging documents, in order to cover up the deteriorating state of the Town’s finances and the inability of RLDC to make scheduled interest and principal payments, St. Lawrence lied ... Continue Reading

U.S. Navy Admiral Sentenced to Prison for Lying to Federal Investigators about His Relationship with Foreign Defense Contractor in Massive Navy Bribery and Fraud Investigation

On May 17, 2017, U.S. Navy Rear Admiral Robert Gilbeau was sentenced to 18 months in prison for making false statements with respect to his twenty-year relationship with GDMA owner, Leonard Glenn Francis.  On June 9, 2016, Gilbeau pled guilty to the charge, admitting that he lied to Defense Criminal Investigative Service (DCIS) and Naval Criminal Investigative Service (NCIS) agents by telling them that he had never received any gifts from Francis and that he ... Continue Reading

Former U.S. Congresswoman Corrine Brown Guilty of Fraud Scheme Involving Bogus Non-Profit Scholarship Entity

On May 11, 2017, former U.S. Congresswoman Corrine Brown was convicted of charges related to her participation in a conspiracy and fraud scheme involving the One Door for Education – Amy Anderson Scholarship Fund (“One Door”).  The prosecution argued that Brown and other co-conspirators used Brown’s status as a U.S. Congresswoman to solicit donations to One Door, which they misled donors into believing was a registered 501(c)(3) organization that would be used for college scholarships ... Continue Reading

Philadelphia District Attorney Rufus Seth Williams Indicted on Additional Fraud Charges; Bucks County, Pennsylvania, Businessman Pleads Guilty to Bribing Philadelphia District Attorney and Tax Charge

On May 9, 2017, Philadelphia District Attorney Rufus Seth Williams was indicted in the District of New Jersey with 11 counts of travel and use of interstate facilities to promote and facilitate bribery contrary to Pennsylvania law, two counts of Hobbs Act extortion under color of official right, two counts of honest services wire fraud, 12 counts of wire fraud, and two counts of mail fraud.  The charges arise from Williams’ alleged use of political ... Continue Reading

Two Former Executives of Foreign Defense Contractor Plead Guilty to Fraud in International Navy Corruption Scandal

On May 9, 2017, following their extradition from Singapore on October 28, 2016, Neil Peterson and Linda Raja pled guilty to conspiracy to defraud the United States by submitting false bids, claims, and invoices to the U.S. Navy.  The two admitted that, while employed by Singapore-based Glenn Defense Marine Asia (GDMA), Peterson as Vice President of Global Operations and Raja as General Manager for Singapore, Australia, and the Pacific Isles, they worked with others at ... Continue Reading

Attorney General Jeff Sessions Delivers Remarks at the Ethics and Compliance Initiative Annual Conference

On April 24, 2017, Attorney General Jeff Sessions spoke at the Ethics and Compliance Initiative Annual Conference.  In his remarks, Sessions stated that he wanted to “make clear” that, under his leadership, “the Department of Justice remains committed to enforcing all the laws”  including “laws regarding corporate misconduct, fraud, foreign corruption and other types of white-collar crime.”  Sessions noted that he spent his “first weeks as Attorney General” making sure that the Department “strengthens its ... Continue Reading

Acting Principal Deputy Assistant Attorney General Trevor N. McFadden of the Justice Department’s Criminal Division Speaks at ACI’s 19th Annual Conference on Foreign Corrupt Practices Act

On April 20, 2017, Acting Principal Deputy Assistant Attorney General Trevor N. McFadden spoke at the American Conference Institute (“ACI”) about the Department of Justice’s continued focus on white collar crime.  Affirming the Department’s commitment, McFadden said, “While we are boosting our focus on violent crime prosecutions, the Criminal Division is fully engaged in combating crime in all its forms, and no matter what color collar its perpetrators wear.  McFadden highlighted the work of the ... Continue Reading

Acting Principal Deputy Assistant Attorney General Trevor N. McFadden Speaks at Anti-Corruption, Export Controls & Sanctions 10th Compliance Summit

On April 18, 2017, Acting Principal Deputy Assistant Attorney General Trevor N. McFadden addressed attendees at the Anti-Corruption, Export Controls & Sanctions Compliance Summit in Washington, D.C. about Corporate Social Responsibility.  Referencing his time working in private practice, McFadden expressed his view that “the vast majority of international business and business leaders want to get compliance right.”  He also said that the improvements in corporate compliance were “quite impressive” as compared to before the enactment ... Continue Reading

Philadelphia District Attorney Charged with Bribery and Extortion

On March 21, 2017, Philadelphia District Attorney Rufus Seth Williams was charged in a 23-count indictment with bribery, extortion and honest services wire fraud in connection with receiving bribes from two business owners and with defrauding a nursing home and family friends of money intended for a family member’s nursing home care.  According to the indictment, from July 2010 to July 2015, Williams solicited and received tens of thousands of dollars’ worth of bribes from ... Continue Reading

Former Chairman and CEO of Credit Union and Operator of Unlawful Bitcoin Exchange Convicted at Trial in Connection with Bribery and Fraud Scheme

On March 17, 2017, Trevon Gross, the former Chairman and CEO of HOPE FCU, a federal credit union in New Jersey with primarily low-income members, and Yuri Lebedev, a former employee of Coin.mx, an unlawful internet-based Bitcoin exchange, were found guilty after a four-week jury trial, in connection with a bribery scheme to gain control of HOPE FCU and a fraud scheme to evade detection of Coin.mx.  Between 2013 and July 2015, Lebedev and his ... Continue Reading

Acting Assistant Attorney General Kenneth A. Blanco Speaks at the American Bar Association National Institute on White Collar Crime

On March 10, 2017, Acting Assistant Attorney General Kenneth A. Blanco addressed the 31st annual American Bar Association White Collar Crime conference about the Criminal Division, and in particular its efforts with respect to white collar crime and corruption in the international arena.  Blanco noted the Department’s success in its anti-money laundering and counter-terrorist financing efforts, as well as its continued efforts in preventing the abuse of shell companies.  Blanco then described the customer due ... Continue Reading

Former Chairman of Board of Commissioners of the Port Authority of New York and New Jersey Sentenced to One Year of Home Confinement in Connection with Bribery Scheme

On March 6, 2017, David Samson, the former chairman of the Board of Commissioners of the Port Authority of New York and New Jersey, was sentenced to one year of home confinement for having used his official authority to pressure United Airlines Inc.’s parent company to institute a non-stop flight from Newark, New Jersey to South Carolina for his personal benefit.  Samson had also served as the New Jersey Attorney General from 2002 to 2003.  ... Continue Reading

Former Arkansas State Senator and Two Others Charged with Bribery and Fraud Scheme

On March 2, 2017, three individuals were charged with a fraud scheme involving bribes paid to two public officials in exchange for directing approximately $600,000 in government funds to two non-profit entities.  The individuals charged were Jonathan E. Woods, a former Arkansas state senator who served from 2013 to 2017, Oren Paris III, a college president, and Randell G. Shelton Jr., a consultant.  Each of the individuals was charged with nine counts of honest services ... Continue Reading

Former Registered Broker Pleads Guilty to Securities Fraud Conspiracy for Participating in a $131 Million Market Manipulation Scheme

On March 1, 2017, Christopher F. Castaldo, a former registered broker, pled guilty in the Eastern District of New York to conspiracy to commit securities fraud in connection with the fraudulent market manipulation of ForceField Energy Inc. (ForceField) stock, listed on the NASDAQ under the symbol “FNRG.”  According to court filings, between January 2009 and April 2015, Castaldo, together with co-conspirators, engaged in a scheme to defraud ForceField investors by (1) artificially controlling the price ... Continue Reading

Deputy Assistant Attorney General Trevor McFadden Delivers Remarks at Global Investigations Review Conference in Washington, DC

On February 16, 2017, Deputy Assistant Attorney General Trevor McFadden delivered remarks on FCPA enforcement at the Global Investigations Review Conference in Washington, DC.  McFadden’s remarks, delivered 40 years after the passage of the FCPA, described the history of FCPA enforcement and signaled continuity in DOJ’s approach under the new Administration.  McFadden described the past 15 years of FCPA enforcement as a continuous effort under the Bush and Obama Administrations, and signaled continuity with DOJ’s ... Continue Reading

Rolls-Royce plc Agrees to Pay $170 Million Criminal Penalty to Resolve Foreign Corrupt Practices Act Case

On January 17, 2017, Rolls-Royce plc agreed to pay the United States nearly $170 million as part of an $800 million global resolution with the United States, United Kingdom, and Brazil.  Rolls-Royce entered into a deferred prosecution agreement in connection with charges that the company conspired to violate the anti-bribery provisions of the FCPA.  According to admissions in the agreement, between 2000 and 2013, Rolls-Royce paid more than $35 million in bribes through third parties ... Continue Reading

Chilean Chemicals and Mining Company Agrees to Pay More Than $15 Million to Resolve FCPA Charges

On January 13, 2017, Sociedad Quimica y Minera de Chile (SQM) entered into a DPA and agreed to pay more than $15 million as a criminal penalty for failure to implement internal controls and falsifying its books and records under the FCPA.  The DPA provides that between 2008 and 2015, SQM made donations to foundations tied to Chilean politicians, including approximately $630,000 to foundations controlled by a Chilean official with influence over the Chilean government’s ... Continue Reading

Zimmer Biomet Holdings Inc. Agrees to Pay $17.4 Million to Resolve Foreign Corrupt Practices Act Charges

On January 12, 2017, Zimmer Biomet Holdings, Inc. entered into a three-year deferred prosecution agreement (“DPA”) in connection with charges that the company failed to implement a system of effective internal controls under the FCPA.  The DPA requires Zimmer Biomet to pay a $17.4 million criminal penalty and retain a compliance monitor for three years.  In addition, an indirect subsidiary of Zimmer Biomet, JERDS Luxembourg Holding S.àr.l., agreed to plead guilty to a one-count criminal ... Continue Reading

Two Businessmen Plead Guilty to Foreign Bribery Charges in Connection with Venezuela Bribery Schemes

On January 10, 2017, Juan Jose Hernandez-Comerma and Charles Quintard Beech III pled guilty for their roles in a foreign bribery scheme in connection with contracts from Petróleos de Venezuela S.A. (“PDVSA”), Venezuela’s state-owned and state-controlled energy company.  Hernandez-Comerma pled guilty to one count of conspiracy to violate the FCPA and one count of violating the FCPA.  Hernandez-Comerma conspired with others to pay bribes, including by providing recreational travel and entertainment to PDVSA officials in ... Continue Reading

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