Posts Tagged With Corruption / Bribery

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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

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

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