Posts Tagged With Corruption / Bribery

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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 ... Continue Reading

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 ... Continue Reading

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 ... Continue Reading

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 ... Continue Reading

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 ... Continue Reading

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 ... Continue Reading

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 ... Continue Reading

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 ... Continue Reading

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 ... Continue Reading

High-Ranking Soccer Officials Convicted in Multimillion-Dollar Bribery Schemes

On December 22, 2017, after a six-week trial before U.S. District Judge Pamela K. Chen of the Eastern District of New York, a federal jury convicted Juan Angel Napout and Jose Maria Marin, former high-ranking soccer officials, of racketeering conspiracy and related offenses.  As proved at trial, the defendants and their co-conspirators accepted or agreed to accept tens of millions of dollars in bribe payments in exchange for media and marketing rights to various soccer ... Continue Reading

Keppel Offshore & Marine Ltd. and U.S.-Based Subsidiary Agree to Pay $422 Million in Global Penalties to Resolve Foreign Bribery Case

On December 22, 2017, Keppel Offshore & Marine Ltd. (“KOM”) and its wholly owned U.S. subsidiary, Keppel Offshore & Marine U.S.A. Inc. (“KOM USA”), agreed to pay a combined total penalty of more than $422 million to resolve charges with authorities in the United States, Brazil, and Singapore arising out of a scheme to pay bribes to Brazilian officials.  In addition, on the same day, KOM USA pled guilty in the Eastern District of New ... Continue Reading

Former Embraer Sales Executive Pleads Guilty to Foreign Bribery and Fraud Charges

On December 21, 2017, a former sales executive of Brazilian aircraft manufacturer Embraer S.A. (“Embraer”) pled guilty to Foreign Corrupt Practices Act (“FCPA”), wire fraud, money laundering, and false-statements charges in connection with his role in an alleged bribery scheme involving Saudi Arabia’s state-controlled oil company.  According to the criminal information filed in U.S. District Court for the Southern District of New York and statements made during court proceedings, British national Colin Steven orchestrated payments ... Continue Reading

Head of Organization Backed by Chinese Energy Conglomerate, and Former Foreign Minister of Senegal, Charged with Bribing High-Level African Officials

On November 20, 2017, federal officials announced the unsealing of a criminal complaint filed in the Southern District of New York against the head of a Hong Kong-based non-governmental organization (“NGO”) and the former Foreign Minister of Senegal in connection with an alleged multiyear foreign bribery scheme.  According to the complaint, Hong Kong resident Chi Ping Patrick Ho, head of an NGO funded by a Chinese conglomerate (the “Energy Company”), conspired with then–Senegalese Foreign Minister ... Continue Reading

Two Executives Plead Guilty to Role in Foreign Bribery Scheme

On November 9, 2017, authorities announced two former executives of a Dutch oil and gas services company (the “Company”) pled guilty to conspiracy to violate the FCPA before the Honorable David Hittner of the Southern District of Texas.  According to documents filed with the court, former Company CEO Anthony “Tony” Mace and Robert Zubiate, a former sales and marketing executive at a Houston-based subsidiary of the Company, participated in a scheme to bribe officials of ... Continue Reading

Acting Assistant Attorney General Kenneth A. Blanco Delivers Remarks at Foreign Corrupt Practices Act / Organisation for Economic Cooperation and Development Anniversary Conference at the NYU School of Law

On November 9, 2017, then–Acting Assistant Attorney General for the DOJ’s Criminal Division Kenneth A. Blanco delivered remarks at the NYU School of Law’s Foreign Corrupt Practices Act / Organisation for Economic Cooperation and Development (“FCPA/OECD”) Anniversary Conference in New York, held this year to mark the 40th anniversary of the FCPA and the 20th anniversary of the OECD’s Anti-Bribery Convention (the “Convention”).  Blanco, who has since left the DOJ and will now serve as ... Continue Reading

Five Individuals Charged in Foreign Bribery Scheme Involving Rolls-Royce Plc and Its U.S. Subsidiary

On November 7, 2017, federal authorities announced criminal charges against five individuals in connection with an alleged foreign bribery scheme involving Rolls-Royce Plc. (“Rolls-Royce”) and its U.S.-based subsidiary.  According to the DOJ’s press release and related court filings, Petros Contoguris, the founder and CEO of Gravitas & Cie. International Ltd. (“Gravitas”), former Rolls-Royce employees James Finley, Keith Barnett, and Aloysius Zuurhout, and international engineering consulting firm executive Andreas Kohler conspired to bribe foreign officials in ... Continue Reading

Deputy Assistant Attorney General Roger Alford Gives Address at International Conference on the Rule of Law and Anti-Corruption Challenges

On October 3, 2017, Roger Alford, Deputy Assistant Attorney General for International Affairs at the DOJ Antitrust Division, delivered an address at the International Conference on the Rule of Law and Anti-Corruption Challenges in São Paulo, Brazil.  Mr. Alford noted that corruption hurts countries’ economies by impeding competition, which in turn “creates a high risk that prices will be distorted and products and services will be substandard” and “disadvantages honest businesses that do not pay ... Continue Reading

Former Broker-Dealer Managing Director Sentenced for Public Pension Fund Bribery Scheme

On September 29, 2017, the Honorable J. Paul Oetken of the Southern District of New York sentenced a New York broker-dealer’s former managing director of institutional fixed income sales Deborah Kelley to three years’ probation, including six months of home confinement. Kelley was also ordered to pay a $50,000 fine, $187,900 in forfeiture, and complete 1000 hours of community service; restitution will be determined within 90 days.  Kelley pled guilty to conspiracy to commit securities ... Continue Reading

Federal Grand Jury Indicts Former Head of SoCal Software Company and IT Executive of Australian Bank for Bribery Scheme Relating to Purchase of Company

On September 27, 2017, a Los Angeles grand jury returned a 15-count indictment for Eric Pulier, the founder, CEO and largest shareholder of software company ServiceMesh, Inc., and Jon Waldron, a former IT manager at the Commonwealth Bank of Australia (“CBA”), relating to charges that ServiceMesh paid bribes to CBA executives to approve contracts that inflated the company’s revenues, which in turn caused Computer Sciences Corporation (“CSC”) to pay a $98 million incentive bonus as ... Continue Reading

Former Executive of a Tenet Hospital and Health Clinic Owner and Operator Charged for $400 Million Fraud and Bribery Scheme

On September 26, 2017, a former Tenet Healthcare Corporation Hospital CEO, Bill Moore, along with an owner and operator of an Atlanta-based chain of pre-natal clinics, Edmundo Cota, were charged for orchestrating a fraud and bribery scheme that caused Tenet to bill Georgia and South Carolina Medicaid Programs for over $400 million.  Moore was charged with one count of conspiracy to defraud the United States and pay and receive health care bribes, two counts of ... Continue Reading

Sweden-Based Telia Company AB Enters Global Resolution of Over $965 Million for Foreign Bribery Allegations

On September 21, 2017, Telia Company AB entered into a global settlement under which is agreed to pay a combined total penalty of $965 million for a scheme to bribe a government official in Uzbekistan.  According to court documents, Telia and its Uzbek subsidiary, Coscom, paid approximately $331 million in bribes to an Uzbek government official, who was closely related to another high-ranking official, in exchange for access to the Uzbek telecom market.  Payments were ... Continue Reading

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

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