{"id":55649,"date":"2024-03-01T15:51:02","date_gmt":"2024-03-01T23:51:02","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=55649"},"modified":"2024-03-01T15:51:02","modified_gmt":"2024-03-01T23:51:02","slug":"a-switzerland-based-trading-company-will-pay-more-than-661-million-for-bribing-ecuadorian-officials","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=55649","title":{"rendered":"A Switzerland-Based Trading Company Will Pay More Than $661 Million For Bribing Ecuadorian Officials"},"content":{"rendered":"<div class=\"node-body\">\n<div>\n<div class=\"field-formatter--text-default field-text-format--wysiwyg text-formatted field_body\">\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1057 size-medium alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/02\/Justice-Depart-300x300.jpg\" alt=\"\" width=\"300\" height=\"300\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/02\/Justice-Depart-300x300.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/02\/Justice-Depart-150x150.jpg 150w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/02\/Justice-Depart.jpg 320w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">Gunvor S.A. (Gunvor), an international commodities trading company based in Switzerland, pleaded guilty and will pay over $661 million to resolve an investigation by the U.S. Justice Department into violations of the Foreign Corrupt Practices Act (FCPA, according to offiicials.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">Gunvor\u2019s guilty plea stemmed from the company\u2019s corrupt scheme to pay substantial bribes to Ecuadorean government officials to secure business with Ecuador\u2019s state-owned and state-controlled oil company, Petroecuador.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">In connection with the resolution, Gunvor entered into a plea agreement with the government and pleaded guilty to information charging the company with conspiracy to violate the anti-bribery provisions of the FCPA.\u00a0<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">Following the plea, the court sentenced Gunvor to pay a criminal monetary penalty of $374,560,071 and to forfeit $287,138,444 in ill-gotten gains. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">The sentence includes credits of up to one-quarter of the criminal fine each for amounts Gunvor pays to resolve investigations by Swiss and Ecuadorean authorities into the same misconduct so long as the payments are made within one year of today\u2019s date. \u00a0<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-55651 alignright\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2024\/03\/switzerland-map-300x263.gif\" alt=\"\" width=\"300\" height=\"263\" \/>The Office of the Attorney General of Switzerland announced Friday a parallel resolution of its investigation into Gunvor\u2019s misconduct that involved payment of approximately $98 million by Gunvor to Swiss authorities.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">\u201cOver nearly a decade, Gunvor representatives bribed high-level government officials at Ecuador\u2019s state-owned oil company to enter into business transactions with other state-owned entities that ultimately benefited Gunvor. As a result of this complex bribery scheme, Gunvor obtained hundreds of millions of dollars in illicit profits,\u201d said Acting Senior Counselor Brent S. Wible of the Justice Department\u2019s Criminal Division.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">Adding, \u201cForeign bribery emboldens corrupt officials and undermines the rule of law. Gunvor\u2019s guilty plea demonstrates that the Criminal Division remains resolute in our efforts to root out bribery and official corruption. We will continue to hold both corporations and individuals who bribe foreign officials to account, in coordination with our international partners.\u201d<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-7857 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/12\/FBI-Logo-289x300.png\" alt=\"\" width=\"289\" height=\"300\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/12\/FBI-Logo-289x300.png 289w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/12\/FBI-Logo.png 636w\" sizes=\"auto, (max-width: 289px) 100vw, 289px\" \/>\u201cToday\u2019s guilty plea and sentencing marks yet another example of this office\u2019s efforts to combat widespread corruption,\u201d said U.S. Attorney Breon Peace for the Eastern District of New York. \u201cCorruption erodes the public\u2019s trust in their government, prevents government officials from acting in the best interests of the people they represent and harms businesses that play by the rules, driving up prices for consumers.&#8221;<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">According to the company\u2019s admissions and court documents, between 2012 and 2020, Gunvor and its co-conspirators paid more than $97 million to intermediaries knowing that some of the money would be and in fact was used to bribe Ecuadorean officials, including Nilsen Arias Sandoval, a then-high ranking official at Petroecuador.\u00a0<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">As part of the scheme, Gunvor managers and agents attended meetings in the United States and elsewhere. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-1537 alignright\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/03\/LADYJUSTICE.jpg\" alt=\"\" width=\"274\" height=\"240\" \/>The bribe payments were routed through banks in the United States using shell companies in Panama and the British Virgin Islands controlled by Gunvor\u2019s co-conspirators.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">\u00a0Among other things, a Gunvor employee also directed one of the intermediaries to use the money to purchase an 18-karat gold Patek Philippe watch for Arias.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">In exchange for these bribe payments, high-level Ecuadorian officials helped various state-owned entities, which were acting as front companies for Gunvor, win the rights to a series of oil-backed loan contracts with Petroecuador. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-5851 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/09\/FBI-Image-300x199.jpg\" alt=\"\" width=\"300\" height=\"199\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/09\/FBI-Image-300x199.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/09\/FBI-Image-90x60.jpg 90w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/09\/FBI-Image-180x120.jpg 180w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/09\/FBI-Image-95x64.jpg 95w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/09\/FBI-Image.jpg 500w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>This structure allowed Gunvor and its co-conspirators to avoid a competitive bidding process and to obtain contractual terms that it could not have obtained otherwise.\u00a0Gunvor also received confidential Petroecuador information in exchange for the bribes. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">In total, Gunvor earned more than $384 million in profits from the contracts it obtained corruptly from Petroecuador.\u00a0<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">The department reached this resolution with Gunvor based on a number of factors, including, among others, the nature and seriousness of the offense.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\"> Gunvor received credit for its cooperation with the department\u2019s investigation, which included: <\/span><\/p>\n<p><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">(i) Producing documents to the department from multiple foreign countries expeditiously while navigating foreign data privacy and criminal laws.<\/span><\/p>\n<p><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\"> (ii) Providing information obtained through its own internal investigation to the department, which allowed the department to preserve and obtain evidence as part of the department\u2019s investigation.<\/span><\/p>\n<p><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\"> (iii) Making detailed, factual presentations to the department.<\/span><\/p>\n<p><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">(iv) Arranging for the interview of an employee based outside the United States.<\/span><\/p>\n<p><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\"> (v) Promptly collecting, analyzing, and organizing voluminous information, including complex financial information, at the request of the department, and producing an analysis of trading activity conducted by multiple outside forensic accounting firms retained by Gunvor.<\/span><\/p>\n<p><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\"> (vi) Translating foreign language documents to facilitate and expedite review by the department.<\/span><\/p>\n<p><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">(vii) Imaging the phones of relevant custodians at the beginning of Gunvor\u2019s internal investigation, thus preserving business communications sent on mobile messaging applications.<\/span><\/p>\n<p><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">Gunvor also engaged in timely and appropriate remedial measures, including<\/span><\/p>\n<p><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\"> (i) Eliminating the use of third-party business origination agents; (ii) enhancing its third party due-diligence process.<\/span><\/p>\n<p><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\"> (iii) Developing and implementing a control framework for internal business developers and additional layers of review and approval for counterparty payments.<\/span><\/p>\n<p><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">(iv) Enhancing the independent compliance committee with responsibility for reviewing high-risk transactions.<\/span><\/p>\n<p><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\"> (v) Engaging resources to review its compliance program and test the effectiveness of its overall reporting process, its reporting hotline and the effectiveness of the investigation of reports made through the hotline.<\/span><\/p>\n<p><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\"> (vi) Evaluating and updating its compensation policy better to incentivize compliance with the law and corporate policies.<\/span><\/p>\n<p><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\"> (vii) Hiring additional compliance personnel.<\/span><\/p>\n<p><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\"> (viii) Testing and enhancing its compliance program, including by conducting compliance culture reviews, testing new third-party due diligence process and payment controls, and evaluating controls around business development activities.<\/span><\/p>\n<p><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">\u00a0(ix) Developing and implementing a risk-based business communications policy that addresses using ephemeral and encrypted messaging applications.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">The department also considered Gunvor\u2019s history of misconduct. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">In October 2019, Gunvor resolved with the Office of the Attorney General of Switzerland concerning a corrupt scheme to bribe officials in Congo-Brazzaville and C\u00f4te d\u2019Ivoire to secure oil contracts obtained between 2009 and 2012.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\"> As part of the 2019 Swiss resolution, Gunvor admitted that it lacked sufficient controls to prevent the underlying misconduct and failed to take \u201call the reasonable organizational measures\u201d required to prevent Gunvor\u2019s employees and agents from engaging in bribery. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">The conduct that is the subject of today\u2019s guilty plea occurred, in part, at the same time as the prior Swiss investigation and resolution.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">In light of these considerations, the department determined that the appropriate resolution in this case was for Gunvor to plead guilty to one count of conspiracy to violate the FCPA. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">The criminal fine calculated under the U.S. Sentencing Guidelines reflects a 25% reduction off the 30th percentile of the applicable guidelines fine range, considering Gunvor\u2019s cooperation, remediation, and prior history.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">The department previously secured convictions in the Eastern District of New York of four individuals who were implicated in Gunvor\u2019s bribery scheme, including:<\/span><\/p>\n<ul>\n<li><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">Antonio Pere Ycaza, a former consultant for Gunvor, pleaded guilty on Oct. 7, 2020, to one count of conspiracy to violate the FCPA and one count of conspiracy to commit money laundering.<\/span><\/li>\n<li><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">Enrique Pere Ycaza, a former consultant for Gunvor, also pleaded guilty on Oct. 7, 2020, to one count of conspiracy to commit money laundering and to violate the FCPA.<\/span><\/li>\n<li><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">Raymond Kohut, a former Gunvor employee and agent, pleaded guilty on April 6, 2021, to one count of conspiracy to commit money laundering.<\/span><\/li>\n<li><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">Nilsen Arias Sandoval, a former senior Petroecuador official, pleaded guilty on Jan. 19, 2022, to one count of conspiracy to commit money laundering.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">The FBI Miami Field Office is investigating the case, with assistance from the FBI\u2019s International Corruption Unit.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Gunvor S.A. (Gunvor), an international commodities trading company based in Switzerland, pleaded guilty and will pay over $661 million to resolve an investigation by the U.S. Justice Department into violations of the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":55650,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,3],"tags":[],"class_list":["post-55649","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fbi","category-u-s-department-of-justice"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>A Switzerland-Based Trading Company Will Pay More Than $661 Million For Bribing Ecuadorian Officials<\/title>\n<meta name=\"description\" content=\"Gunvor S.A. 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