Skip to main content
Menu Icon Menu Icon
Close

FCPA Scorecard Blog

Foreign Corrupt Practices Act & Anti-Corruption
Section Content

Upcoming Events

Filter

Subscribe to our FinCrimes Update for news about the Foreign Corrupt Practices Act and related prosecutions and enforcement actions.

  • Former Malaysia Prime Minister charged with money laundering

    On August 8, Malaysia’s former Prime Minister Najib Razak pleaded not guilty to money laundering charges filed against him in Malaysia in connection with the ongoing investigation of state fund 1MDB. Razak had previously pleaded not guilty to three charges of criminal breach of trust and one charge of abuse of power. The money laundering charges relate to approximately $10 million that was allegedly deposited into the former Prime Minister’s personal bank account. That is a small portion of the total funds under investigation as misappropriated from the state fund.

    The day before, a $250 million super yacht was returned to Malaysia after it was previously seized in Indonesia following claims by the U.S. Department of Justice that is was purchased with funds misappropriated from 1MDB. Back in July 2016, DOJ filed civil forfeiture complaints seeking recovery of more than $1 billion in assets associated with the alleged “international conspiracy to launder funds misappropriated from [1MDB].” In June 2017, DOJ filed additional civil forfeiture complaints to recover another $540 million in assets. The investigation into assets linked to the state fund 1MDB continues with DOJ alleging that more than $3.5 billion in total funds were misappropriated from 1MDB from 2009 through 2015.

    DOJ Anti-Money Laundering

    Share page with AddThis
  • Former Barbados Minister of Industry charged with money laundering

    On August 6, the Department of Justice announced the arrest and first court appearance of Donville Inniss, former Minister of Industry of Barbados, who DOJ has charged with “laundering bribes that he allegedly received from a Barbadian insurance company in exchange for official actions he took to secure government contracts for the insurance company.” The indictment, which was initially issued under seal on March 15, charges Inniss with one count of conspiracy to launder money and two counts of money laundering. It also seeks forfeiture of the funds he received as alleged bribes. The indictment alleges that as Minister of Industry, Inniss caused the Barbados Investment & Development Corporation, an agency of the Barbados Government, to renew two contracts with the Barbadian insurance company. In return, the insurance company purportedly paid him approximately $36,000, routing the payments through a dental company and its bank account located in New York. The indictment also references as co-conspirator, but does not name, the CEO of the dental company, a United States citizen and resident of Tampa, Florida. Inniss is also a lawful permanent resident of Tampa, Florida.

    DOJ Anti-Money Laundering

    Share page with AddThis
  • Latest conviction in PDVSA bribery case

    On July 16, 2018, Luis Carlos De Leon-Perez, a dual U.S.-Venezuelan citizen, pleaded guilty to one count of conspiracy to violate the FCPA and one count of conspiracy to commit money laundering. De Leon’s convictions relate to allegations that he bribed officials at Venezuela’s state-owned oil company, Petroleos de Venezuela S.A. (PDVSA), and laundered money for bribes to other company employees. FCPA Scorecard provided earlier coverage of this case here.

    De Leon admitted to soliciting and directing bribes from two U.S. citizens, including Cesar David Rincon Godoy, in exchange for securing payment priority for their companies from PDVSA and for awards of PDVSA contracts. De Leon also admitted to conspiring with these individuals to launder and conceal the proceeds of the scheme through a series of financial transactions, including wire transfers to offshore accounts. Sentencing is scheduled for September 24, 2018.

    De Leon’s conviction underscores how wide investigations can become as the DOJ continues pulling threads and obtaining guilty pleas. The DOJ has charged 15 defendants in the PDVSA cases, 12 of whom have pleaded guilty to date, including De Leon. DOJ also credited the assistance of the Swiss Federal Office of Justice and the Spanish Guardia Civil.

    DOJ FCPA Anti-Money Laundering Bribery Petroleos de Venezuela

    Share page with AddThis
  • Aruban telecom official sentenced for money laundering conspiracy involving FCPA violations

    On June 27, Judge Frederico Moreno of the United States District Court of the Southern District of Florida sentenced Egbert Yvan Ferdinand Koolman, an official of Servicio di Telecommunicacion di Aruba N.V. (Setar), to 36 months in prison following his guilty plea for money laundering charges in connection with a scheme to arrange and receive corrupt payments to influence the awarding of contracts in Aruba. According to the DOJ’s press release, Koolman, between 2005 and 2016, used his position as Setar’s product manager to influence the awarding of lucrative mobile phone and accessory contracts with the Aruban state-owned telecommunications company. Koolman also admitted to providing favored vendors with confidential Setar information in exchange for more than $1.3 million in corrupt payments. Koolman was ordered to pay over $1.3 million in restitution and to serve three years of supervised release following his prison term.

    Previous Scorecard coverage of this matter can be found here.

    DOJ Anti-Money Laundering FCPA

    Share page with AddThis
  • Guilty plea from former Venezuelan official in bribery scheme

    The DOJ announced on Thursday, April 19, that a former Venezuelan official had pleaded guilty to one count of conspiracy to commit money laundering. The charge arose from Cesar David Rincon Godoy’s role in a bribery scheme involving bribes paid by the owners of U.S. companies to Venezuelan government officials to secure energy contracts and payments on outstanding invoices. As the former general manager of the procurement subsidiary of the Venezuelan state-owned energy company, Petroleos de Venezuela S.A. (PDVSA), Rincon had solicited and accepted bribes. The judge entered a personal money judgment of $7,033,504.71. As a government official receiving the bribes, Rincon could not be charged himself with FCPA offenses (which are targeted at those paying the bribes). Related charges against four other individuals remain pending, including charges of conspiracy to violate the FCPA; 11 individuals have already pleaded guilty in the PDVSA cases.  

    For prior coverage of the PDVSA enforcement actions, please see here.

    DOJ Petroleos de Venezuela Venezuela Bribery FCPA Anti-Money Laundering

    Share page with AddThis
  • Aruban telecom official pleads guilty to money laundering conspiracy involving FCPA violations

    Egbert Yvan Ferdinand Koolman, an official of Servicio di Telecommunicacion di Aruba N.V. (Setar), pleaded guilty to money laundering charges in connection with a scheme to arrange and receive corrupt payments to influence the awarding of contracts in Aruba.  The DOJ’s press release describes Setar as an Aruban state-owned company.  According to his plea agreement, Koolman, a Dutch citizen living in Florida, operated a money laundering conspiracy between 2005 and 2016 in his position as Setar’s product manager.   Lawrence W. Parker, Jr., who owned several Florida-based telecommunications companies, previously pleaded guilty to paying bribes to Koolman and Koolman’s wife.

    Koolman admitted that he conspired with Parker and others to transmit funds from Florida and elsewhere in the United States to Aruba and Panama with the intent to promote a wire fraud scheme and a corrupt scheme that violated the FCPA.  Koolman was promised and received bribes from individuals and companies located in the United States and abroad in exchange for using his position at Setar to award lucrative mobile phone and accessory contracts.  Koolman also admitted to providing favored vendors with confidential Setar information in exchange for the more than $1.3 million in corrupt payments.

    Setar filed a civil complaint against Koolman and other parties on March 3 in U.S. District Court for the Southern District of Florida, which contains a few points of note.  First, Setar describes itself in the complaint as a privatized company, whereas the DOJ’s press release called it an instrumentality of the Aruban government.  Second, the complaint states that Setar became aware of some of Koolman’s alleged activities via the Panama Papers, the 2016 leak of over 11 million documents from Panamanian law firm and financial services provider Mossack Fonseca.

    DOJ FCPA Anti-Money Laundering

    Share page with AddThis
  • DOJ unseals charges against former Venezuelan government officials for money laundering and FCPA violations in Petroleos scheme

    On February 12, the DOJ unsealed charges against five former Venezuelan government officials for their involvement in a money laundering scheme at Venezuela’s state-owned energy company Petroleos de Venezuela (Petroleos). The five defendants—Luis Carlos De Leon Perez (De Leon), Nervis Gerardo Villalobos Cardenas (Villalobos), Cesar David Rincon Godoy (Cesar Rincon), Alejandro Isturiz-Chiesa, and Rafael Ernesto Reiter Munozare (Reiter)—are each charged with conspiracy to commit money laundering. De Leon and Villalobos are also charged with conspiracy to violate the FCPA. 

    De Leon, Villalobos, Cesar Rincon, and Reiter were arrested in Spain in October 2017 on arrest warrants based on an indictment filed in the Southern District of Texas last August. Cesar Rincon has been extradited from Spain, while the others are pending extradition. 

    The indictment alleges that the five defendants possessed significant influence within Petroleos, which permitted them to solicit PDVSA vendors for “bribes and kickbacks in exchange for providing assistance to those vendors in connection with their PDVSA business.” The Petroleos vendors included residents of the U.S. and vendors who owned U.S.-based businesses. According to the indictment, two Petroleos vendors, Roberto Enrique Rincon Fernandez and Jose Shiera-Bastidas, transferred more than $27 million to accounts in Switzerland that were connected to De Leon and Villalobos. Rincon and Shiera previously pleaded guilty in the Southern District of Texas to FCPA charges related to the bribery of Petroleos officials. 

    The charges are part of an ongoing investigation by the DOJ and ICE-HSI into bribery at Petroleos, which has resulted in charges against fifteen individuals, ten of whom have pleaded guilty. Previous FCPA Scorecard coverage of the Petroleos investigation can be found here.

    Score Card Bribery FCPA Petroleos de Venezuela DOJ Anti-Money Laundering Financial Crimes

    Share page with AddThis
  • SFO confirms opening of criminal investigation into aerospace and defense group

    On January 18, the Serious Fraud Office (“SFO”) confirmed the opening of an investigation of Chemring Group PLC (“Chemring”) and its subsidiary, Chemring Technology Solutions Limited (“CTSL”) into alleged bribery, corruption, and money laundering. Chemring, a UK-based company that designs and makes products in the aerospace and defense industries, stated that the investigation followed a voluntary report from CTSL relating to “two specific historic contracts.” According to Chemring, the first of these contracts was awarded before the company took over the business group being investigated, while the second contract occurred after the acquisition. Chemring stated that the company will fully cooperate with the SFO’s investigation and provide further updates.

    UK Serious Fraud Office Fraud Bribery Anti-Corruption Anti-Money Laundering Chemring

    Share page with AddThis
  • Judge denies bail to former Hong Kong official, who pleads not guilty to alleged African bribery

    Patrick Ho, a former Hong Kong official, reportedly entered a not guilty plea and was denied bail in federal district court in New York related to a number of FCPA, conspiracy, and money laundering counts. Ho was charged in late 2017, along with his co-defendant Cheikh Gadio, the former Foreign Minister of Senegal, with offering $2 million in bribes to the President of Chad. Ho is also alleged to have paid a half-million dollar bribe to the foreign affairs minister of Uganda. The DOJ alleges that Ho sought to direct bribe money through an NGO that he ran, which is funded by a Chinese-based oil and gas company.

    FCPA Anti-Money Laundering

    Share page with AddThis
  • Former Embraer Executive Pleads Guilty to Saudi Arabian Bribery

    A former sales executive of Brazilian-based aircraft manufacturer Embraer S.A. pleaded guilty on December 21 in connection with a scheme to pay bribes to a Saudi Arabian government official. Colin Steven, a U.K. resident living in the United Arab Emirates, pleaded guilty to a count each of violating the FCPA, conspiracy to violate the FCPA, wire fraud, conspiracy to commit wire fraud, money laundering, conspiracy to launder money, and making a false statement. As part of his plea, he admitted that he engaged in a scheme to have Embraer pay bribes to a foreign official in exchange for assistance in getting an aircraft sales contract. Steven also admitted getting a kickback as part of the scheme and lying to law enforcement officials about the kickback.

    Embraer previously paid $205 million to the DOJ and SEC in October 2016 to resolve related FCPA violations in Saudi Arabia, Mozambique, and the Dominican Republic. 

    DOJ International FCPA Anti-Money Laundering

    Share page with AddThis

Pages