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Tag: bribery

  • AT&T Fined $23 Million for Bribing a Politician’s Ally

    AT&T is adding to the long list of fines levied against, this time to the tune of $23 million for bribery.

    AT&T has a long history of running afoul of regulations, being fined millions in the process. According to the Department of Justice, the latest fine is a whopping $23 million for bribery.

    Illinois Bell Telephone Company, LLC, which does business as AT&T Illinois, today agreed to pay $23 million to resolve a federal criminal investigation into alleged misconduct involving the company’s efforts to unlawfully influence former Illinois Speaker of the House Michael J. Madigan.

    AT&T admitted to arranging “for payments to be made to an ally of Madigan to influence and reward Madigan’s efforts to assist AT&T Illinois with respect to legislation sought by the company.”

    Under the agreement, the prosecution will be deferred for two years, giving AT&T time to abide by conditions set by the DOJ. Should those conditions be met, the case will be dismissed in two years.

  • Ericsson to Pay Over $1 Billion Fine to Settle Bribery Charges

    Ericsson to Pay Over $1 Billion Fine to Settle Bribery Charges

    ZDNet is reporting that Swedish telecommunications company Ericsson has pled guilty to bribing officials in multiple countries and agreed to pay more than $1 billion in fines.

    Ericsson admitted to engaging in a long-standing scheme to bribe officials in China, Djibouti, Saudi Arabia, Indonesia, Kuwait and Vietnam from 2000 to 2016. The longest campaign was in China, running the full 17 years.

    “As part of the settlement, Ericsson entered into a three-year agreement with the US Department of Justice (DoJ) to resolve charges of violating the anti-bribery, books and records, and internal controls provisions of the Foreign Corrupt Practices Act (FCPA). In the agreement, the DoJ agreed to defer any criminal charges and have them dismissed after the three-year period in exchange for Ericsson paying a fine of almost $521 million.”

    Ericsson also settled with the Securities and Exchange Commission (SEC) to the tune of $540 million over the same charges. When taken together with the DOJ fines, Ericsson is paying a total of $1.06 billion.

    “I am upset by these past failings. Reaching a resolution with the US authorities allows us to close this legacy chapter. We can now move forward and build a stronger company,” Börje Ekholm, Ericsson President and CEO, said.

    “The settlement with the SEC and DoJ shows that we have not always met our standards in doing business the right way. This episode shows the importance of fact-based decision making and a culture that supports speaking up and confronting issues. We have worked tirelessly to implement a robust compliance program. This work will never stop.”

  • HP to Pay $108 Million Over Bribery and Money Laundering Charges

    Hewlett-Packard this week agreed to pay $108 million to the U.S. Securities and Exchange Commission and the U.S. Department of Justice to settle money laundering and bribery charges. The charges were brought against HP for violations of the Foreign Corrupt Practices Act. According to the charges, the company’s subsidiaries provided substantial bribes to officials in foreign countries to secure IT contracts.

    “Hewlett-Packard lacked the internal controls to stop a pattern of illegal payments to win business in Mexico and Eastern Europe,” said Kara Brockmeyer, chief of the FCPA Unit of the SEC’s Enforcement Division. “The company’s books and records reflected the payments as legitimate commissions and expenses. Companies have a fundamental obligation to ensure that their internal controls are both reasonably designed and appropriately implemented across their entire business operations, and they should take a hard look at the agents conducting business on their behalf.”

    Three of HP’s subsidiaries in Mexico, Poland, and Russia were implicated by an SEC-led investigation.

    In Mexico HP was found to have funneled at least $125,000 through a state-owned oil company to a consultant in exchange for help in winning a $6 million government contract. According to the SEC, HP Mexico salespersons referred to this payment as an “influencer fee.”

    In Poland, HP bribed a government official from 2006 to 2010 in exchange for securing IT contracts. The Polish official was paid, in off-the-books cash, a percentage of the revenues earned through the contracts.

    In Russia HP paid bribes to agents and consultants to secure government hardware and software contracts. This occurred between 2000 and 2007.

    HP released a statement this week characterizing the bribery and money laundering as the work of a small number of already-fired employees. The company emphasized that it will comply with its obligations under the terms of the settlement.

    “The misconduct described in the settlement was limited to a small number of people who are no longer employed by the company,” said John Schultz, EVP and general counsel, at HP. “HP fully cooperated with both the Department of Justice and the Securities and Exchange Commission in the investigation of these matters and will continue to provide customers around the world with top quality products and services without interruption.”

    As part of the settlement, HP has admitted to violating the internal controls and books and records provisions of the Securities Exchange Act. The company will pay $26.47 million to the SEC, $2.53 million in IRS forfeiture, $5 million in prejudgement interest, and multiple fines totaling $74.2 million.

    Image via HP

  • Texas County Commissioner Charged For Bribery

    The saying goes that all politics are local. Whether or not this is true, it is clear that all politicians, from the U.S. congress down to the mayors of small towns, are susceptible to corruption.

    With so much money riding on political decisions, the most common type of corruption is undoubtedly bribery. While taking a little extra on the side to help a few friends may seem harmless enough for small-time politicians, it contradicts the competition and meritocracy that so many Americans rely on. It can also lead to federal prison, as one Texas politician may soon discover.

    The FBI this week arrested 36-year-old Kristopher Michael Montemayor on charges of bribery. Montemayor was a county commissioner for Precinct 1 of the Webb County, Texas Commissioners Court.

    Montemayor was arrested following a federal grand jury indictment that charged the man with two counts of federal programs bribery. The commissioner allegedly accepted bribes in exchange for jobs and favors while working for the county. The grand jury’s indictment has now been unsealed following the commissioner’s arrest.

    According to charges brought by the U.S. Department of Justice, Montemayor is alleged to have accepted a 2012 Ford truck valued at approximately $37,015 in exchange for providing jobs to the truck’s owner and the truck owner’s spouse.

    The case against Montemayor was investigated by the FBI out of Laredo, Texas. The commissioner was eventually caught by an undercover law enforcement agent who posed as a businessman.

    As alleged in court documents, Montemayor accepted around $11,000 and $2,700 in electronics from the undercover agent. In return the commissioner had “promised to take official action” to promote the undercover agent’s fake business interests.

    If convicted Montemayor faces up to 10 years in prison for each of the two bribery charges, which also each carry a fine of up to $250,000.

    Image via Thinkstock

  • Another Soldier Sentenced For Afghanistan Fuel Theft

    U.S. Army Sergeant Kevin Bilal Abdullah has been sentenced to one year, one day in prison for his role in fuel thefts at Forward Operating Base (FOB) Fenty in Afghanistan. Abdullah pleaded guilty to bribery and conspiracy to commit bribery in August 2013 for receiving bribes in exchange for helping to steal fuel during his time in Afghanistan.

    Abdullah is one of four convictions that have been obtained that are related to fuel thefts at Fenty. Two civilian contractors, Jonathan Hightower and Christopher Weaver, have been sentenced to two years in prison and three years, one month in prison, respectively for their part in the thefts. Former U.S. Army Specialist Stephanie Charboneau last month was sentenced to seven years, three months in prison for helping to facilitate the theft of around 70 truckloads of fuel worth approximately $1.2 million.

    Like Charboneau, Abdullah was in charge of overseeing deliveries of fuel from Fenty to other military bases in Afghanistan. He forged fake transportation movement request documents authorizing transfers of fuel to other locations in the country. Instead of other military bases, the fuel was diverted by an Afghan trucking company and stolen. Abdullah, as with others in on the scheme, was paid in cash by the trucking company for helping to facilitate the thefts.

    In all Abdullah was responsible for the theft of around 25 truckloads of fuel from the U.S. Army. In addition to his year in prison, Abdullah has been ordered to pay $466,250 in restitution to the U.S.

  • Another Soldier Found Guilty of Afghanistan Fuel Theft

    U.S. Army Sergeant Alber Kelly III today pleaded guilty to charges related to the theft of fuel from the U.S. Army in Afghanistan.

    Kelly was stationed at Forward Operating Base Salerno in Afghanistan from 2011 until 2012, assigned to oversee the delivery of fuel into the base. Kelly was in charge of verifying and documenting the total amounts of fuel that were transferred to Salerno.

    Instead of accurately performing his duties, from November 2011 through January 2012 Kelly falsified records showing that fuel had been delivered to Salerno. The fuel in question had actually been diverted by Afghan trucking companies and stolen.

    Kelly received around $57,000 from Afghan trucking companies for facilitating the fuel thefts. The total amount of fuel stolen through Kelly is estimated to be around 25,000 gallons, or around $100,000 worth.

    Kelly is due to be sentenced on May 22. He faces up to 10 years in prison for his crime.

    Kelly’s crimes are similar to those of U.S. Army Specialist Stephanie Charboneau, who also helped facilitate the theft of fuel from a military base in Afghanistan. Charboneau was sentenced to seven years and three months in prison for helping to steal over $1.2 million worth of fuel from Forward Operating Base Fenty. Charboneau took bribes from trucking companies to forge false transportation movement requests for fuel that was stolen.

    Charboneau and Kelly are two of five people now to be prosecuted for crimes related to fuel theft during the war in Afghanistan.

  • Ray Nagin: Former New Orleans Mayor Is Now A Convict

    Ray Nagin, former mayor of New Orleans, is now a convict. A federal jury found him guilty of corruption charges on Wednesday, February 12. Nagin left office in 2010 after serving two terms as mayor.

    In January 2013, Nagin was indicted on charges that he accepted thousands of dollars in bribes and payoffs. He was also charged with accepting truckloads of granite for his personal enterprise in exchange for supporting and promoting businessman Frank Fradella’s projects. The indictment included the services Nagin and his family received in exchange for his nod to businesses pursuing contracts in the city. More than $5 million in city contracts were reported to have been the result of these transactions.

    The jury deemed Nagin guilty of 20 of the 21 counts against him. These include six counts of bribery, four counts of filing false tax returns, one count of overarching conspiracy, nine counts of wire fraud, and one money laundering conspiracy count. He was found not guilty of one count of bribery. The trial lasted for two weeks, during which prosecutors brought forth some of the businessmen who stepped forward to plead guilty to bribing the former mayor.

    In his testimony, Nagin said that what the prosecution’s key witness said was false, and that the evidence were all misinterpreted by the prosecutors. In addition, Nagin’s lawyer remarked that there is no proof that his client was given money. The granite, though sent to the family business, was actually tied to projects for the city, he said. During the cross-examination, however, Nagin seemed to dig a deeper hole for himself when he said he couldn’t remember who paid for a trip or perk he received.

    It was during Nagin’s first term as mayor when Hurricane Katrina hit the city in 2005. During that time, there were doubts as to whether the taxpayer money being sent to the city was being used for the right purposes, considering that the state had a long history of corruption. Nagin, who was elected to mayorship only a few years before the disaster, was ready to reassure the people and put their suspicions of corruption to rest. He reportedly said that anyone was free to do a Google search on him, adding, “You’re not going to find any of that in my record.”

    Image via YouTube

  • Soldier Jailed For Fuel Theft in Afghanistan

    The U.S. Department of Justice this week announced that former U.S. Army Specialist Stephanie Charboneau has been sentenced to seven years and three months in prison for her role in a plot to steal fuel from the U.S. Army.

    Last September Charboneau pleaded guilty to the charges, which include bribery and conspiracy to commit bribery. Her thefts are estimated to have cost the U.S. over $1.2 million.

    Charboneau was stationed at Forward Operating Base (FOB) Fenty in Afghanistan in early 2010, when the thefts occurred. She was assigned to oversee the delivery of fuel from Fenty to other bases in Afghanistan.

    To facilitate the thefts, Chaboneau forged false transportation movement requests (TMRs) which were used to fill truck and send the fuel to a trucking company involved in the conspiracy. She was directly involved in the theft of around 70 truckloads of fuel and has admitted to taking bribes from the trucking company for her part in the scheme.

    Charboneau is the fourth person to be prosecuted for crimes related to the fuel thefts. Civilian contractors Jonathan Hightower and Christopher Weaver were sentenced to two years in prison and three years, one month in prison, respectively in October 2013. Army Sergeant Bilal Kevin Abduallah has pleaded guilty to charges related to the thefts and is scheduled to be sentenced on February 12.

  • Navy Bribery Scandal Implicates Three US Officers

    Three US Naval officers have been indicted in a bribery case concerning husbanding activities in Asian ports. Commander Jose Luis Sanchez, Commander Michael Vannak Khem Misiewicz, and Naval Criminal Investigative Service Supervisory Special Agent John Beliveau II have all been arrested and accused of conspiracy to commit bribery.

    The two naval commanders, Sanchez and Misiewicz, collaborated with Glenn Defense Marina Asian (GDMA) CEO Leonard Francis in regards to where and when naval ships would port to refuel and restock: “According to court records, Sanchez allegedly provided Francis with internal Navy information, such as US Navy ship schedules — some of which were classified — and information about husbanding issues that could affect GDMA, in order to help GDMA win and maintain Navy business,” reported a statement from the US Justice Department.

    GDMA is based out of Singapore and operates more than a dozen ports in the Asian-Pacific. Francis, who goes by the alias “Fat Leonard” due to his over-the-top, luxurious lifestyle, is a legend in the Asian military sphere, having provided services to multiple nations’ navies for over 25 years: “He’s a larger-than-life figure. You talk to any captain on any ship that has sailed in the Pacific and they will know exactly who he is,” stated retired Rear Admiral Terry McKnight.

    Investigation into the scandal started in 2010 when GDMA charged the US Navy $110,000 for docking fees to stage annual exercises with the Thai Navy; previously, the two countries had arranged that there would be no costs incurred. From there, the extortion has gone on to include the exchange of prostitutes, money, and even Lady Gaga concert tickets.

    “As described in the corruption charges unsealed today, senior officials with the United States navy abused their trusted positions as leaders in our armed forces by peddling favorable treatment – and even classified government information – for their personal benefit. In turn, the GDMA executives who illicitly sought information and favours from those navy officials boasted about their unlawful access to those officials and then traded on the influence that they illegally bought. Day by day, this massive Navy fraud and bribery investigation continues to widen, and as the charges announced today show, we will follow the evidence wherever it takes us,” stated Maithili Raman, acting assistant attorney general.

    NCIS special agent Beliveau has been arrested for supplying Francis with insider information from the NCIS investigation into the bribery scandal in order to help Francis construct a viable defense against the charges. According to an email exchanged between Francis and Commander Sanchez in December 2011, Francis stated, “I have inside Intel from NCIS and read all the reports. I will show you a copy of a Classified Command File on me from NCIS ha ha.”

    If found guilty of the charge of conspiracy to commit bribery, the three officers will each face up to 5 years in prison, a seemingly light punishment for the loss of potential millions of the US defense budget.

    [Image via Wikimedia Commons]