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Multiagency Burma Business Advisory: Gems and Precious Minerals

January 26, 2022, 9:22 am
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II. GEMS AND PRECIOUS METALS
Gems and precious metals generate billions of dollars of exports in Burma’s economy and accounted for nearly half of the country’s GDP in 2015, the last year for which credible data is available. However, because of the lack of regulation, transparency, and accountability, the sector is rife with potential for money laundering, corruption, and human rights abuses, including forced labor. These risks are only heightened by the military coup, consolidating both the industry and its oversight under military rule.
The mutual evaluation of Burma by the Asia Pacific Group on Money Laundering (APG), which tracks Burma’s compliance with the FATF Standards on combating money laundering and the countering of financing of terrorism and proliferation of weapons of mass destruction, identified several concerns in the gems and precious metals industries. These include the significant involvement of politically exposed persons (PEPs) and SOEs, insufficient anti-money laundering controls, corruption, and the reliance on cash-based transactions with poor record-keeping. Additionally, gem industries in Burma, specifically jade and rubies, were identified by the Department of Labor’s List of Goods Produced by Child Labor or Forced Labor10 as utilizing forced labor and child labor.
Further compounding these inherent risks identified by the FATF and the Department of Labor in Burma’s economy, the 2019 UN Fact Finding Mission report found that the military controlled a large portion of the gems and precious metal sector through two military holding companies, Myanma Economic Holdings Limited (MEHL) and Myanmar Economic Corporation (MEC), and their numerous subsidiaries, which has benefited senior military leaders involved in serious human rights abuse and other abuses. Furthermore, the UN Fact Finding Mission report found that the military has committed gross violations of human rights, including involving forced labor and sexual violence, in connection with their business activities in the gems industry.
In March 2021, MEHL and MEC11 were designated by the Office of Foreign Assets Control at the U.S. Department of the Treasury (OFAC) under E.O. 14014 in response to the coup and the military’s abuses throughout Burma, which was quickly followed by the additional designations of Myanma Gems Enterprise (MGE) and Myanmar Pearl Enterprise (MPE) in April 2021. As a result of these designations, all property and interests in property of these entities that are in the United States or are in the possession or control of a U.S. person are blocked. Unless authorized by OFAC, all transactions by U.S. persons, wherever located, or within (or transiting) the United States that involve any property or interests in property of the designated persons have been prohibited since the relevant designations.12
Given the insufficient reporting requirements in Burma for cross-border transfers of goods and funds, the U.S. government recommends that gem, pearl, and precious metal importers undertake enhanced due diligence to better understand their supply chains and to ensure they are not sourcing from or brokering through military-owned or -operated entities, even if their supply chain seems to be completely outside of Burma. A supply chain that, on paper, does not refer to or otherwise appear to touch Burma may still involve links in which the military is the ultimate beneficiary. For example, jade, rubies, and sapphires from Burma have been previously smuggled into countries like China and Thailand to be cut and sold on the international markets as “made in Thailand,” or “made in Hong Kong” and most lab-test certificates do not often show which company profited from their sale. It is the responsibility of businesses and individuals to ensure their sourcing is consistent with what is being reported from vendors and suppliers to avoid potential liability for sanctions violations.

Footnotes:

10 List of Goods Produced by Child Labor or Forced Labor. See https://www.dol.gov/agencies/ilab/reports/child- labor/list-of-goods
11 MEHL and MEC were also added to the Bureau of Industry and Security’s Entity List. See Annex I.
12 For more information, the U.S. Department of the Treasury encourages you to visit the OFAC website on Burma- related sanctions at: https://home.treasury.gov/policy-issues/financial-sanctions/sanctions-programs-and-country- information/burma.

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Multiagency Burma Business Advisory: Real Estate and Construction Projects Benefiting the Military

January 26, 2022, 9:25 am
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III. REAL ESTATE AND CONSTRUCTION PROJECTS BENEFITING THE MILITARY
Burma lacks both the necessary government regulation and oversight, and the strong banking and financial sector to adequately monitor for money laundering risks in the real estate, development, and construction sectors. Historically, the military has seized land, forced evictions, and displaced peoples while offering little to no compensation.13 Additionally, the large presence of foreign-owned properties heightens the risks to legitimate real estate agents and developers of knowingly or unknowingly engaging in cross-border money laundering.
The return of the military regime exacerbates these risks, as the military has significant interests in the real estate sector as an owner, lessor, and seller of properties within the country. The 2019 UN Fact Finding Mission reported receiving credible information that the Pyinmabin Industrial Zone, the Golden City residential development in Rangoon, and the Sule Shangri-La Hotel and Sule Square Commercial Project are owned or controlled by the military. The report also highlighted that the military is potentially receiving payments through MEC and MEHL from foreign companies that rent spaces to maintain a physical presence in Burma. MEHL and MEC were also identified as joint venture partners for foreign firms looking to develop and build on properties within Burma.
U.S. businesses maintaining a physical presence in Burma, including leasing or purchasing facilities for corporate offices, retail, wholesale, warehousing, and related physical infrastructure, should investigate as appropriate to determine whether payments are benefiting designated entities, and should take appropriate measures to ensure their compliance with applicable requirements related to U.S. sanctions and money laundering controls. U.S. businesses maintaining a physical presence are also encouraged to conduct heightened due diligence around land tenure to identify, mitigate, and redress issues regarding possible land seizures.
Warning signs of real estate-based money laundering include, but are not limited to:
□ Significant and unexplained geographic distance between agent, customer, and property.
□ Customers with unclear true beneficial ownership or controlling interest.
□ High-value cash payments.
□ Counterparties, government or otherwise, that are not subject to monitoring or supervision.
□ The speed of the transaction.
□ Successive transactions.
□ Introduction of unknown or substitute parties at the late stage of a transaction.
□ Third party vehicles (e.g., newly established corporations) used to obscure the ownership of
the buyer.
□ Extremely over- or under-valued transactions.
In addition, the Department of Labor’s reporting on goods and products produced by child labor, forced labor, and/or forced child labor in Burma includes numerous construction materials, such as bamboo, bricks, palm thatch, and teak.14 Businesses and individuals involved in construction and development in Burma involving these materials should take the necessary steps to mitigate risks of exposure to these human rights abuses.
If any of these warning signs are detected, businesses and individuals are encouraged to conduct increased know-your-customer practices to ensure that customers provide satisfactory responses to address concerns and to file suspicious transaction reports to the relevant authorities as required. For U.S.-based financial institutions and money service businesses, suspicious activity reports should be submitted to FinCEN, the financial intelligence unit of the United States.

Footnotes:

13 In 2016, a Burmese government official, citing the finding of a parliamentary committee, indicated as many as two million acres of land across Burma could be considered confiscated.

14 For additional information, refer to Annex 1: U.S. Department of Labor.

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Multiagency Burma Business Advisory: Arms, Military Equipment, and Related Activity

January 26, 2022, 9:28 am
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IV. ARMS, MILITARY EQUIPMENT, AND RELATED ACTIVITY
The 2018 APG Myanmar (Burma) Mutual Evaluation found that arms trafficking and the illegal arms trade were major issues in Burma, indicating the involvement of military-affiliated militias, ethnic armed organizations, transnational organized crime groups, and corrupt officials. This has only worsened with the military coup.
In response, the UN General Assembly adopted a resolution on June 18, 2021, calling for a stop to the flow of arms to Burma, while also urging the military to restore the democratically elected government. The United States supported this resolution and encourages U.S. businesses and individuals to implement the screening measures necessary to ensure they do not facilitate trade or transactions related to the arms and defense sectors of Burma. The United States also has the authority to implement financial sanctions targeting foreign individuals and entities operating in the defense sector of Burma through E.O. 14014 and will not hesitate to use this authority.
Countries with entities that have previously sold or transferred arms and other military equipment, including dual-use goods, to Burma and have not subsequently enacted arms embargos include China, India, Israel, Japan, Democratic People’s Republic of Korea, the Philippines, Russia, Serbia, Singapore, South Africa, and Ukraine. These countries had previously sold or offered services related to ammunition ranging from small arms use to torpedoes and missiles, cameras and radios with military use, military grade vehicles including aircraft and automobiles, navigation and position system services for the military, and unmanned aerial vehicles with potential military uses.
In response to the February 2021 military coup, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) issued a notice announcing a more restrictive review policy for certain license applications as well as several amendments imposing restrictions under the Export Administration Regulations (EAR), 15 C.F.R. Parts 730-774, on the export and reexport of items (commodities, software, and technology) subject to the EAR that are destined for Burma and/or certain entities located in Burma. Pursuant to the EAR, BIS regulates the export and reexport of U.S.-origin dual-use, purely commercial, and certain less-sensitive military items. In addition to U.S.-origin items, certain foreign-produced items are also subject to the EAR, if they meet a certain “de minimis” level of U.S.-origin content by value that is “controlled” to the destination in question (in the case of Burma, greater than 25 percent). On February 18, 2021, BIS issued a Federal Register notice announcing that it would review license applications for items destined for Burma’s Ministry of Defense, Ministry of Home Affairs, armed forces, and security forces under a presumption of denial. BIS also suspended the availability of four license exceptions for
items destined for Burma.

On March 8, 2021, BIS implemented new restrictions on Burma under the EAR, moving the country to a more restrictive country group (Country Group D:1), and subjecting it to “military end use” and “military end user” controls. On the same day, BIS added to the Entity List (Supp. No. 4 to Part 744 of the EAR)15 four entities—a military services entity and a security services entity responsible for the coup, and two commercial entities that are owned and operated by the military services entity. In a July 6, 2021, rule, BIS added to the Entity List four commercial enterprises providing the military with material support or revenue. Additionally, on April 9, 2021, BIS added Burma to the list of destinations subject to military intelligence end-use and end-user restrictions and identified the Office of Chief of Military Security Affairs (OCMSA) and the Directorate of Signal on an illustrative list of military-intelligence end-users. Exports of all items subject to the EAR require a license to military-intelligence end users in Burma.
All regulatory amendment (and one notice) issued by the Department of Commerce in response to the military coup may be found at Promoting Human Rights and Democracy (doc.gov).
BIS may act against any person (individual or entity) in connection with a violation of the EAR. As set forth in the Export Control Reform Act of 2018, 50 U.S.C. §§ 4801-4852, criminal penalties may include up to 20 years of imprisonment and up to $1 million in fines per violation, or both. Administrative monetary penalties may currently reach up to approximately $309,000 per violation or twice the value of the underlying transaction, whichever is greater. In general, the administrative monetary penalty maximum is adjusted for inflation annually. In order to disclose a potential violation of export controls administered by BIS under the EAR, please send an electronic transmission to BIS_VSD_INTAKE@bis.doc.gov and the BIS Confidential Lead/Tip Form or tip line (1-800-424-2980) as appropriate. To submit a request to BIS for a license, please refer to the BIS licensing website.
Actors engaged in business activities or transactions in or involving Burma should consider conducting heightened due diligence and ensure compliance with all applicable U.S. laws and regulations.

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Former Honduran President added to Section 353 Report

February 8, 2022, 8:53 am
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U.S. Actions Against Former Honduran President Juan Orlando Hernandez for Corruption

PRESS STATEMENT

ANTONY J. BLINKEN, SECRETARY OF STATE

FEBRUARY 7, 2022Share

The United States’ commitment to fighting corruption and promoting democracy, rule of law, and accountability in support of the people of Central America is ironclad. We believe these issues are key to a brighter future for Central America. To advance this priority, we are declassifying and publicizing the inclusion of former Honduran President Juan Orlando Hernandez on the United States’ Corrupt and Undemocratic Actors list, under Section 353 of the United States–Northern Triangle Enhanced Engagement Act, as amended, which generally makes the listed individuals ineligible for visas and admission to the United States. The Department included Hernandez on the list effective July 1, 2021.

As detailed in our report to Congress, according to multiple, credible media reports, Juan Orlando Hernandez has engaged in significant corruption by committing or facilitating acts of corruption and narco-trafficking, and using the proceeds of illicit activity to facilitate political campaigns. In addition, Hernandez was identified by name in sworn witness testimony in a U.S. federal criminal proceeding as having received narco-trafficking proceeds as part of his campaign funding. The Department included Hernandez on the Corrupt and Undemocratic Actors list on July 1, 2021 and is now publicizing this status.

The United States continues to use the tools at its disposal to promote accountability for corruption and other attacks on the security, stability, and democratic aspirations of the people of Honduras, Central America, and the world. We will continue partnering with Honduran government officials and members of civil society and the private sector who show a dedication to combating corruption and strengthening democratic governance, including as part of an overall policy of addressing the root causes of irregular migration from the region. We will continue supporting the people of Honduras as they strive to contribute to and benefit from democratic institutions, generate equitable economic opportunities, and create the futures they desire for themselves and their families.

Interesting… didn’t know that at least some of the listings are classified…

Link:

State Department Press Release

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Former Nairobi Governor designated under Section 7031(c)

March 8, 2022, 6:19 am
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Designation of Former Nairobi Governor Sonko for Involvement in Significant Corruption

PRESS STATEMENT

NED PRICE, DEPARTMENT SPOKESPERSON

MARCH 8, 2022Share

The U.S. Department of State is designating former-Nairobi Governor Mike Sonko Gidion Mbuvi Kioko due to his involvement in significant corruption.  While in office, Governor Sonko solicited bribes and kickbacks in exchange for awarding government contracts to his associates.  His actions undermined the rule of law and the public’s faith in Kenya’s democratic institutions and public processes.

This designation is made under Section 7031(c) of the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2021.  Under this authority, designated officials of foreign governments involved in significant corruption and their immediate family members are ineligible for entry into the United States.  The Department of State is also announcing the designation of the following members of Sonko’s immediate family: his wife Primrose Mwelu Nyamu Mbuvi; their daughters Saumu Agnes Mbuvi and Salma Wanjiru Mbuvi; and Sonko’s minor child.

These designations reaffirm the commitment of the United States to combatting corruption and supporting the rule of law while strengthening democratic institutions in Kenya. We will continue to use all available tools to promote accountability for corrupt actors in this region and globally.

Link:

State Department Press Release

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Section 353 designations for Nicaraguan officials

March 10, 2022, 7:15 am
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U.S. Action Against Corruption and Attacks on Democracy in Nicaragua

PRESS STATEMENT

NED PRICE, DEPARTMENT SPOKESPERSON

MARCH 9, 2022Share

The U.S. government is deeply concerned by the injustice and lack of transparency on display at the trials of political prisoners in Nicaragua. We remain committed to supporting the people of Nicaragua by fighting corruption and promoting democracy, the rule of law, and accountability, which are keys to a brighter future.  To advance this priority, today we add nine Nicaraguans to the United States’ Corrupt and Undemocratic Actors list, under Section 353 of the United States–Northern Triangle Enhanced Engagement Act, as amended. The Act generally makes the listed individuals ineligible for visas and admission to the United States.  The Reinforcing Nicaragua’s Adherence to Conditions for Electoral Reform Act of 2021 (RENACER) Act, passed with broad bipartisan support and signed by President Biden on November 10, 2021, expanded the Corrupt and Undemocratic Actors list to include Nicaragua.

The State Department adds the following nine Nicaraguan government officials to the list for undermining the democratic processes or institutions of Nicaragua:

  • Cairo Melvin Amador, current Vice President of the Supreme Electoral Council (CSE), Lumberto Ignacio Campbell Hooker, current CSE member and Acting CSE President from 2018 until May 2021, and Brenda Isabel Rocha Chacon, current CSE President, for conspiring with the Ortega-Murillo regime to undermine Nicaragua’s political institutions and subvert the November 2021 national election by disqualifying legitimate opposition parties and candidates on spurious grounds.
  • Edwin Ramon Castro Rivera, member of the Nicaraguan National Assembly since 1997 and head of the FSLN caucus since 2007, for ensuring Ortega-Murillo loyalists won all magistrate positions in the CSE and ensuring the passage of extremely broad legislation that the Ortega-Murillo regime used to exclude opposition candidates and parties and harass and jail political opponents.
  • Karen Vanessa Chavarria Morales, current judge in the ninth district in Managua, for abusing her authority and subverting legal processes to act against political opponents of the Ortega-Murillo regime and disqualify opposition candidates from the November 2021 election.
  • Walmaro Antonio Gutierrez Mercado, current member of the Nicaraguan National Assembly, Carlos Wilfredo Navarro Moreira, current member of the Nicaraguan National Assembly, and Gustavo Eduardo Porras Cortes, current President of the Nicaraguan National Assembly for giving the Ortega-Murillo regime the tools to conduct its brazen assault on democracy by stacking the CSE with FSLN members loyal to Ortega.
  • Maria Haydee Osuna Ruiz, current member of the Nicaraguan National Assembly, for conspiring with the Ortega-Murillo regime to subvert the November 2021 Nicaraguan national elections by signing a spurious complaint that served as pretext for the government to disqualify the last remaining legitimate opposition party and hound its leader into exile.

We will continue to use all tools at our disposal to promote accountability for corruption and other attacks on the security, stability, and democratic aspirations of the people of Central America. We are standing with the people of Nicaragua as they strive to restore democratic institutions, select their leaders in free and fair elections, and create the futures they desire for themselves and their families.

Link:

State Department Press Release

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March 9, 2022: Section 7031(c) designation for former President of Ecuador

March 10, 2022, 8:55 am
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Designation of Former Ecuadorian President Bucaram for Involvement in Significant Corruption

PRESS STATEMENT

NED PRICE, DEPARTMENT SPOKESPERSON

MARCH 9, 2022Share

The United States is designating former Ecuadorian President Abdalá Jaime Bucaram Ortiz, Sr. due to his involvement in significant corruption, including misappropriation of public funds, accepting bribes, and interfering with public processes.  During his tenure as the president of Ecuador, Bucaram engaged in multiple corrupt acts, including accepting bribes and stealing public funds.  Former President Bucaram has not yet faced accountability for his betrayal of the public trust.

This public designation is made under Section 7031(c) of the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2021, as carried forward by the Continued Appropriations Act, 2022.  Under this authority, designated officials of foreign governments involved in significant corruption and their immediate family members are ineligible for entry into the United States.  The Department is also designating Bucaram’s spouse, María Rosa Pulley Vergara, and sons Jacobo Abdalá Bucaram Pulley, Abdalá Jaime Bucaram Pulley, and Michel Abdalá Bucaram Pulley.

This designation reaffirms the commitment of the United States to combat corruption that undermines the Ecuadorian people’s faith in its democratic institutions. We stand with all Ecuadorians in support of democracy and the rule of law and against those who undermine these principles for personal gain.

Link:

State Department Press Release

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When the FCPA doesn’t fit… there’s the Travel Act

March 16, 2022, 5:51 am
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Department of Justice

U.S. Attorney’s Office

Western District of Tennessee

FOR IMMEDIATE RELEASE

Thursday, February 24, 2022

Former Assistant District Attorney Pleads Guilty to Conspiracy to Violate the Federal Travel Act

Memphis, TN – Glenda Adams, 49, has pleaded guilty to conspiracy to violate the federal statute known as the Travel Act. Joseph C. Murphy, Jr., United States Attorney announced the guilty plea today.

According to information presented in court, between February 2017 and October 2020, Glenda Adams was an Assistant District Attorney (ADA) employed by the Shelby County District Attorney’s Office in Memphis, Tennessee. During that time, a local attorney paid Adams to provide him with law enforcement restricted information contained in traffic accident reports.

Automobile accidents occurring in the Memphis city limits were typically investigated by the Memphis Police Department (MPD). The Crash Reports generated by the MPD investigations were uploaded into a law enforcement database known as “Watson.” Access to Watson was limited to law enforcement officials. Subsequently, the Crash Reports were available for purchase from the City of Memphis. Through her employment as an Assistant District Attorney, Adams had access to Watson and the Crash Reports.

In exchange for payments from the attorney, Adams would access MPD Crash Reports from the Watson system, then provide those reports to the attorney in exchange for cash payment. The local attorney would use the Crash Reports to solicit accident victims identified in the Reports and offer them legal representation.

On February 23, 2022, Adams pled guilty.

“Citizens rely on those who hold positions of public trust to execute their duties with integrity and in the best interests of the public,” said Douglas M. Korneski, Special Agent in Charge of the Federal Bureau of Investigation Memphis Field Office. “The FBI will continue to work with its law enforcement partners to identify and investigate those who abuse that trust out of personal greed.”

Sentencing is set for May 27, 2022, before United States District Judge Jon P. McCalla, where Adams faces up to five years in federal prison along with three years’ supervised release. There is no parole in the federal system.

This case was investigated by the Tennessee Bureau of Investigation (TBI) and the Federal Bureau of Investigation (FBI).

Assistant United States Attorney David Pritchard is prosecuting this case on behalf of the government.

Link:

DOJ Press Release

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ASO publishes Magnitsky human rights & corruption sanctions lists

March 30, 2022, 6:20 am
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Notice of Changes to the Consolidated List

 

Following registration of the below listed Legislative Instrument made by the Minister for Foreign Affairs, DFAT has updated the Consolidated List:

 

The listings made in the Instrument were made under the Magnitsky-style thematic sanctions regimes in relation to serious violations and serious abuses of human rights, and serious corruption, which came into effect on 21 December 2021.

 

The updated Consolidated List can be downloaded from the following page:

 

 

Australian Sanctions Office

_______________________________
Australian Sanctions Office and Transnational Crime Branch | Regulatory Legal Division

Department of Foreign Affairs and Trade +61 2 6261 3830
www.dfat.gov.au

Here are the human rights sanctions designations: 

Schedule 1—Serious violations or serious abuses of human rights
Note:       See section 5.
  
  
1  Designated and declared persons
                   The following table specifies persons for the purposes of subsections 5(1) and (2).
Item
Description
 
1
Name of individual
Aleksey Vasilyevich ANICHIN
 
Also known as
Alexei Vasilyevich ANICHIN
 
Date of birth
01/12/1949
 
Place of birth
Sevastopol, Ukraine
 
Citizenship
Russia
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
2
Name of individual
Aleksei DROGANOV
 
Date of birth
11/10/1975
 
Citizenship
Russia
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
3
Name of individual
Alexandra Viktorovna GAUS/GAUSS
 
Also known as
Aleksandra Viktorovna GAUSS, Alexandra Viktorovna GAUS, Aleksandra Viktorovna GAUS
 
Date of birth
29/03/1975
 
Citizenship
Russia
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
4
Name of individual
Victor Yakovlevich GRIN
 
Also known as
Viktor Yakolevich GRIN
 
Date of birth
01/01/1951
 
Citizenship
Russia
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
5
Name of individual
Dmitriy KOMNOV
 
Also known as
Dmitri KOMNOV
 
Date of birth
17/05/1977
 
Place of birth
Moscow, Russia
 
Citizenship
Russia
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
6
Name of individual
Dmitry Borisovich KRATOV
 
Also known as
Dimitri Borisovich KRATOV
 
Date of birth
19/07/1964
 
Citizenship
Russia
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
7
Name of individual
Andrei Alexandrovich KRECHETOV
 
Date of birth
22/09/1981
 
Citizenship
Russia
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
8
Name of individual
Aleksey KRIVORUCHKO
 
Also known as
Alex KRIVORUCHKO, Alexei KRIVORUCHKO
 
Date of birth
25/08/1977
 
Place of birth
Moscow, Russia
 
Citizenship
Russia
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
9
Name of individual
Larisa Anatolievna LITVINOVA
 
Date of birth
18/11/1963
 
Citizenship
Russia
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
10
Name of individual
Oleg LOGUNOV
 
Date of birth
04/02/1962
 
Place of birth
Irkutsk Region, Russia
 
Citizenship
Russia
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
11
Name of individual
Andrey Ivanovich PECHEGIN
 
Also known as
Andrei PECHEGIN
 
Date of birth
24/09/1965
 
Place of birth
Russia
 
Citizenship
Russia
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
12
Name of individual
Sergei PODOPRIGOROV
 
Also known as
Sergey PODOPRIGOROV
 
Date of birth
08/01/1974
 
Place of birth
Moscow, Russia
 
Citizenship
Russia
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
13
Name of individual
Ivan Pavlovitch PROKOPENKO
 
Date of birth
28/09/1973
 
Place of birth
Vinnitsa, Ukraine
 
Citizenship
Russia
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
14
Name of individual
Oleg F. SILCHENKO
 
Date of birth
25/06/1977
 
Place of birth
Samarkand, Uzbekistan
 
Citizenship
Russia
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
15
Name of individual
Yelena STASHINA
 
Also known as
Elena STASHINA, Helen STASHINA
 
Date of birth
05/11/1963
 
Place of birth
Tomsk, Russia
 
Citizenship
Russia
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
16
Name of individual
Fikret TAGIYEV
 
Also known as
Fikhret TAGIYEV, Fikhret Gabadulla Ogly TAGIYEV, Fikret TAGIEV, Fikhret TAGIEV, Fikhret Gabdulla Ogly TAGIEV, Fikret TAGUEV, Fikhret TAGUEV, Fikhret Gabdulla Ogly TAGUEV
 
Date of birth
03/04/1962
 
Place of birth
Baku, Azerbaijan
 
Citizenship
Russia
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
17
Name of individual
Dmitri TOLCHINSKIY
 
Date of birth
11/05/1982
 
Place of birth
Moscow, Russia
 
Citizenship
Russia
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
18
Name of individual
Svetlana UKHNALYOVA
 
Also known as
Svetlana V. UKHNALYOVA, Svetlana UKHNALEVA, Svetlana V. UKHNALEVA, Svetlana UKHNALEV, Svetlana V. UKHNALEV
 
Date of birth
14/03/1973
 
Place of birth
Moscow, Russia
 
Citizenship
Russia
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
19
Name of individual
Natalya VINOGRADOVA
 
Date of birth
16/06/1973
 
Citizenship
Russia
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
20
Name of individual
Gennady Vyacheslavovich KARLOV
 
Date of birth
27/02/1960
 
Citizenship
Russia
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
21
Name of individual
Boris Borisovich KIBIS
 
Date of birth
20/11/1977
 
Place of birth
Russia
 
Citizenship
Russia
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
22
Name of individual
Pavel LAPSHOV
 
Date of birth
07/07/1976
 
Place of birth
Russia
 
Citizenship
Russia
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
23
Name of individual
Andrei Alexandrovich STRIZHOV
 
Date of birth
01/08/1983
 
Place of birth
Russia
 
Citizenship
Russia
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
24
Name of individual
Elena Anatolievna TRIKULYA
 
Date of birth
18/03/1975
 
Place of birth
Russia
 
Citizenship
Russia
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
25
Name of individual
Alexander Ivanovich BASTRYKIN
 
Date of birth
27/08/1953
 
Place of birth
Russia
 
Citizenship
Russia
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022

and the corruption sanctions ones:

Schedule 2—Serious corruption
Note:       See section 6.
  
  
1  Designated and declared persons
                   The following table specifies persons for the purposes of subsections 6(1) and (2).
Item
Description
 
1
Name of individual
Dmitry Vladislavovich KLYUEV
 
Date of birth
10/08/1967
 
Place of birth
Moscow, Russia
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
2
Name of individual
Artem Konstantinovich KUZNETSOV
 
Date of birth
28/02/1975
 
Place of birth
Baku, Azerbaijan (former USSR)
 
Citizenship
Russia
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
3
Name of individual
Pavel Aleksandrovich KARPOV
 
Date of birth
27/08/1977
 
Place of birth
Moscow, Russia
 
Citizenship
Russia
 
Additional information
Passport number: 604176957 (likely expired) 
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
4
Name of individual
Stanislav Evgenievich GORDIEVSKY
 
Date of birth
09/09/1977
 
Place of birth
Russia
 
Citizenship
Russia
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
5
Name of individual
Oleg Vyacheslavovich URZHUMTSEV
 
Date of birth
22/10/1968
 
Citizenship
Russia
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
6
Name of individual
Yelena Ivanovna KHIMINA
 
Date of birth
11/09/1953
 
Place of birth
Moscow, Russia
 
Citizenship
Russia
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
7
Name of individual
Olga Germanovna STEPANOVA
 
Date of birth
29/07/1962
 
Place of birth
Moscow, Russia
 
Citizenship
Russia
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
8
Name of individual
Vladlen Yurievich STEPANOV
 
Date of birth
17/07/1962
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
9
Name of individual
Viktor Aleksandrovich MARKELOV
 
Date of birth
15/12/1957
 
Place of birth
Leninskoye village, Uzganskiy District, Osh region, Kyrgyzstan (Former USSR)
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
10
Name of individual
Vyacheslav Georgievich KHLEBNIKOV
 
Date of birth
09/07/1967
 
Place of birth
Tambov, Russia
 
Citizenship
Russia
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
11
Name of individual
Alexei Nikolaevich SHESHENYA
 
Also known as
Alexei Nikolaevich SHESHENIA
 
Date of birth
16/04/1971
 
Place of birth
Kommunarsk, Voroshilov region, Ukraine (former USSR)
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
12
Name of individual
Gennady Nikolaevich PLAKSIN
 
Date of birth
August 1961
 
Place of birth
Moscow, Russia
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
13
Name of individual
Andrei Alekseyevich PAVLOV
 
Date of birth
07/08/1977
 
Citizenship
Russia
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022
14
Name of individual
Yulia Mikhailovna MAYOROVA
 
Date of birth
23/04/1979
 
Place of birth
Moscow, Russia
 
Citizenship
Russia
 
Additional information
Passport: 622264502 (as of 2006)
 
Instrument of first designation and declaration
Autonomous Sanctions (Designated Persons and Entities and Declared Persons—Thematic Sanctions) Instrument 2022

Note: ASO says these are “Magnitsky-style” sanctions – to be clearer, they’re more akin to OFAC’s Global Magnitsky program. The Magnitsky program is not only very specific (which is why this is “Magnitsky-style”), but also only covers human rights abuses.

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Former Ecuadorian Official indicted for bribery and money laundering

April 1, 2022, 7:45 am
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Department of Justice

Office of Public Affairs

FOR IMMEDIATE RELEASE

Tuesday, March 29, 2022

Former Comptroller General of Ecuador Indicted for Alleged Bribery and Money Laundering Scheme 

The former Comptroller General of Ecuador made his initial appearance today in Miami, Florida, for allegedly engaging in a scheme to use the U.S. financial system to launder money to promote and conceal an illegal bribery scheme in Ecuador.

According to the March 24 indictment unsealed today, between approximately 2010 and 2016, Carlos Ramon Polit Faggioni (Polit), allegedly solicited and received over $10 million in bribe payments from Odebrecht S.A., the Brazil-based construction conglomerate, in exchange for using his official position as Comptroller General of Ecuador to influence official actions by the comptroller’s office in order to benefit Odebrecht and its business in Ecuador. Additionally, Polit is alleged to have received a bribe from an Ecuadorian businessman in or around 2015 in exchange for assisting the businessman and his company in connection with certain contracts from the state-owned insurance company of Ecuador.

The indictment alleges that, from in or around 2010 and continuing until at least 2017, at the direction of Polit, another member of the conspiracy caused proceeds of Polit’s bribery scheme to “disappear” by using Florida companies registered in the names of certain associates, often without the associates’ knowledge. The conspirators also used funds from Polit’s bribery scheme to purchase and renovate real estate in South Florida and elsewhere and to purchase restaurants, a dry cleaner and other businesses. 

Odebrecht S.A. pleaded guilty on Dec. 21, 2016, in the Eastern District of New York to conspiring to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) in connection with a broader scheme to pay nearly $800 million in bribes to public officials in 12 countries, including Ecuador.

Polit is charged with one count of conspiracy to commit money laundering, three counts of concealment money laundering, and two counts of engaging in transactions in criminally derived property. If convicted, he faces up to 20 years in prison for each count of money laundering and conspiracy to commit money laundering and up to 10 years in prison for each count of engaging in transactions in criminally derived property. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida, and Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI) Miami office made the announcement.

HSI’s Miami Field Office is investigating the case. 

Trial Attorneys Jill Simon and Alexander Kramer of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael N. Berger of the U.S. Attorney’s Office for the Southern District of Florida are prosecuting the case. Assistant U.S. Attorney Peter Laserna is handling asset forfeiture.

The Justice Department’s Office of International Affairs also provided substantial assistance. The Justice Department also wishes to thank law enforcement authorities in Ecuador, Brazil, Panama, and Curacao for their assistance with the investigation.  

The Fraud Section is responsible for investigating and prosecuting Foreign Corrupt Practices Act (FCPA) matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Link:

DOJ Press Release

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Coal Co. VP charged with FCPA, Wire Fraud & Money Laundering offenses

April 7, 2022, 7:02 am
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Department of Justice

U.S. Attorney’s Office

Western District of Pennsylvania

FOR IMMEDIATE RELEASE

Thursday, March 31, 2022

Former Coal Company Vice President Arrested and Charged with Foreign Bribery, Money Laundering, and Wire Fraud

WASHINGTON – A former coal company executive was arrested today on charges of violating the Foreign Corrupt Practices Act (FCPA), laundering funds, and receiving kickbacks as part of an alleged scheme to pay bribes to government officials in Egypt in connection with contracts with an Egyptian state-owned and state-controlled company, Al Nasr Company for Coke and Chemicals (Al Nasr).

The seven-count indictment alleges that Charles Hunter Hobson, 46, of Knoxville, Tennessee, engaged in the bribery and money laundering scheme between late 2016 and early 2020.

During part of that time, Hobson was the Vice President of a coal company in Pennsylvania (referenced as Company 1 in the indictment) and responsible for the company’s business relationship with Al Nasr. Hobson and others, including Company 1’s sales intermediary, allegedly paid bribes to Al Nasr officials in Egypt to obtain approximately $143 million in coal contracts for Company 1. To effectuate the bribery scheme, the indictment alleges, Hobson and others caused Company 1 to: (1) pay commissions to the sales intermediary, who passed on bribes to Al Nasr officials in exchange for the coal contracts, and (2) transfer the corrupt commission payments from a bank account in the United States to a bank account in the United Arab Emirates. The indictment also alleges that Hobson conspired to secretly receive a portion of the commissions paid to the sales intermediary as kickbacks.

Hobson is charged with one count of conspiracy to violate the FCPA, two counts of violating the FCPA, one count of conspiracy to launder money, two counts of money laundering, and one count of conspiracy to commit wire fraud. He faces up to five years in prison for each of the bribery conspiracy and bribery charges, and up to 20 years in prison for each of the money laundering conspiracy, money laundering, and wire fraud charges. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The defendant will make his initial court appearance this afternoon in the Eastern District of Tennessee.

Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, U.S. Attorney Cindy K. Chung for the Western District of Pennsylvania, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office made the announcement. The Justice Department’s Office of International Affairs provided assistance.

The FBI’s International Corruption Unit in Washington, D.C., and the Washington Field Office are investigating the case.

Assistant U.S. Attorney Eric G. Olshan of the Western District of Pennylvania and Trial Attorneys Leila E. Babaeva and Natalie R. Kanerva of the Criminal Division’s Fraud Section are prosecuting the case.

An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The Office of Public Affairs (OPA) also issued a press release- link is below, although I assume the content is very similar (the OPA provided a link to the indictment, which the Western District of PA one did not).

Links:

DOJ Press Releases – Office of Public Affairs, Western District of Pennsylvania

Indictment

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Former Puerto Rico legislator & 2 employees plead to bribery & kickback scheme

April 7, 2022, 7:20 am
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Department of Justice

Office of Public Affairs

FOR IMMEDIATE RELEASE

Friday, April 1, 2022

Former Puerto Rico Legislator and Two Capitol Employees Plead Guilty to Bribery and Kickback Scheme

A former Puerto Rico legislator and two employees who worked in his office pleaded guilty this week to engaging in a bribery and kickback scheme.

According to court documents, Nelson Del Valle Colon, 56, of Dorado, Puerto Rico, pleaded guilty yesterday to one count of federal program bribery, and Mildred Estrada-Rojas, 55, of Bayamon, Puerto Rico, and her daughter, Nickolle Santos-Estrada, 32, also of Bayamon, each pleaded guilty Wednesday to one count of federal program bribery.

Del Valle Colon was elected to the Puerto Rico House of Representatives in 2016 and hired Estrada and Santos to work in his legislative office. In exchange for their employment and their salaries, Estrada and Santos paid biweekly kickbacks to Del Valle Colon of between approximately $500 and $1,300 from early 2017 until July 2020.

According to admissions made in connection with their pleas, Del Valle Colon, Estrada, and Santos paid the kickbacks in a variety of ways. Estrada and Santos generally paid cash in an envelope that they provided to Del Valle Colon in an office in the Capitol Building in Old San Juan. Estrada also sometimes paid Del Valle Colon over ATH Móvil, a mobile phone cash transfer application. Another individual who worked for Del Valle Colon in his legislative office also agreed to pay Del Valle Colon biweekly cash kickbacks during that individual’s employment with Del Valle Colon.

Del Valle Colon is scheduled to be sentenced on June 30, and Estrada and Santos are scheduled to be sentenced on June 29. Each faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico, and Special Agent in Charge Joseph González of the FBI’s San Juan Field Office made the announcement.

The FBI’s San Juan Field Office is investigating the case.

Trial Attorney Jonathan E. Jacobson of the Justice Department’s Public Integrity Section and Assistant U.S. Attorney Scott Anderson from the U.S. Attorney’s Office for the District of Puerto Rico are prosecuting the case.

Link:

DOJ Press Release

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Health Care Charity pays $8 million for embezzlement & bribery

April 7, 2022, 7:45 am
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Department of Justice

U.S. Attorney’s Office

Western District of Missouri

FOR IMMEDIATE RELEASE

Thursday, March 31, 2022

Springfield Health Care Charity Pays More Than $8 Million Related to Federal Embezzlement, Bribery Investigation

SPRINGFIELD, Mo. – Springfield, Missouri-based nonprofit Preferred Family Healthcare will pay more than $8 million in forfeiture and restitution to the federal government and the state of Arkansas under the terms of a non-prosecution agreement announced today, which acknowledges the criminal conduct of its former officers and employees.

“Preferred Family Healthcare must relinquish the illegal profits it garnered from a wide-ranging fraud and bribery scheme,” said U.S. Attorney Teresa Moore for the Western District of Missouri. “Several former officers and employees are being prosecuted in separate criminal cases for their individual criminal conduct. This non-prosecution agreement holds the charity itself responsible for their actions as agents of the charity. Public tax dollars were stolen and misused in the course of this public corruption scheme, and through this agreement and these separate prosecutions, those dollars are being restored to the public coffers.”

“Employees of Preferred Family Healthcare used charitable organizations to illegally line their own pockets through fraud and bribery,” said Special Agent in Charge Tyler Hatcher of IRS-Criminal Investigation (IRS-CI) “IRS-Criminal Investigation and our law enforcement partners will continue to work diligently to uncover large frauds designed to divert funds that were meant to help those in need of medical services. Preferred Family Healthcare has acknowledged that its former employees engaged in criminal activity and they are taking steps to make amends by forfeiting a sum of money to the federal government and paying restitution to the state of Arkansas.”

“The public should not suffer or be responsible for individuals who abuse their leadership positions out of greed for personal financial gain,” said Special Agent in Charge Charles Dayoub of the FBI’s Kansas City Field Office. “It is never acceptable to embezzle and misappropriate funds, especially those that directly impact our health care system. As today’s announcement underscores, although the individuals directly involved are no longer with Preferred Family Healthcare, this organization is accepting responsibility for its employees’ actions.”  

“The misuse and misappropriation of millions of federally sourced funds, designated for employment training and behavioral healthcare services to the public, by former executives of Preferred Family Healthcare (PFH) is a gross abuse of the positions of trust they once held within the organization,” said Special Agent-in-Charge Steven Grell of the U.S. Department of Labor, Office of Inspector General. “These former executives failed the public and did a disservice to PFH employees by prioritizing their own personal benefit and financial gain over the public they served.  Today’s agreement demonstrates PFH’s willingness to take corrective actions regarding the criminal actions of former executives of the organization.” 

Preferred Family Healthcare provides a variety of services to individuals in Missouri, Arkansas, Kansas, Oklahoma, and Illinois, including mental and behavioral health treatment and counseling, substance abuse treatment and counseling, employment assistance, aid to individuals with developmental disabilities, and medical services. Most of the charity’s funding is from appropriated federal funds – the largest portion being Medicaid reimbursement.

By signing the non-prosecution agreement, representatives of Preferred Family Healthcare admitted that former officers and employees of the charity engaged in a conspiracy to, amongst other criminal activity, embezzle funds from the charity and to bribe several elected state officials in the Arkansas House of Representatives and the Arkansas Senate. As a direct result of these actions, Preferred Family Healthcare realized a financial benefit. Although Preferred Family Healthcare’s board of directors did not receive full or accurate information about these actions, the board, through lack of proper oversight, allowed its officers and employees to violate federal law.

Under the terms of the non-prosecution agreement, Preferred Family Healthcare will forfeit more than $6.9 million to the federal government and pay more than $1.1 million in restitution to the state of Arkansas related to the misuse of funds from the state’s general improvement fund.

Several former executives from the charity, former members of the Arkansas state legislature, and others have pleaded guilty in federal court as part of the multi-jurisdiction, federal investigation, including the following:

  • Former Chief Executive Officer, Marilyn Luann Nolan of Springfield, Missouri, pleaded guilty to her role in a conspiracy to embezzle and misapply the funds of a charitable organization that received federal funds. A sentencing hearing has not been scheduled.
  • Former Director of Operations and Executive Vice President Robin Raveendran, of Little Rock, Arkansas, pleaded guilty to conspiracy to commit bribery concerning programs receiving federal funds. A sentencing hearing has not been scheduled.
  • Former executive and head of clinical operations Keith Fraser Noble, of Rogersville, Missouri., pleaded guilty to concealment of a known felony. A sentencing hearing has not been scheduled.
  • Former employee and head of operations and lobbying in Arkansas, Milton Russell Cranford, aka Rusty, of Rogers, Arkansas, was sentenced to seven years in federal prison without parole after pleading guilty to one count of federal program bribery.
  • Political Consultant Donald Andrew Jones, aka D.A. Jones, of Willingboro, New Jersey, pleaded guilty to his role in a conspiracy from April 2011 to January 2017 to steal from an organization that receives federal funds.
  • Former Arkansas State Senator Jeremy Hutchinson, of Little Rock, Arkansas, pleaded guilty to conspiracy to commit federal program bribery. A sentencing hearing has not been scheduled.
  • Former Arkansas State Representative Eddie Wayne Cooper, of Melbourne, Arkansas, pleaded guilty to conspiracy to embezzle more than $4 million from Preferred Family Healthcare. A sentencing hearing has not been scheduled.
  • Former Arkansas State Senator and State Representative Henry (Hank) Wilkins IV pleaded guilty to conspiracy to commit federal program bribery, and devising a scheme and artifice to defraud and deprive the citizens of the State of Arkansas of their right to honest services. A sentencing hearing has not been scheduled.

As part of the federal investigation, the former chief operating officer and chief financial officer of the charity were indicted by a federal grand jury on March 29, 2019. They pleaded not guilty, and are awaiting trial, which is scheduled to begin on Oct. 3, 2022.

The separate criminal cases are being prosecuted by Supervisory Assistant U.S. Attorney Randall Eggert and Assistant U.S. Attorney Shannon T. Kempf of the Western District of Missouri, Assistant U.S. Attorney Steven M. Mohlhenrich of the Western District of Arkansas, Senior Litigation Counsel Marco A. Palmieri and Trial Attorney Jacob Steiner with the Public Integrity Section of the Department of Justice’s Criminal Division, and Special Assistant U.S. Attorney Stephanie Mazzanti of the Eastern District of Arkansas.

IRS-Criminal Investigation, the FBI, and the Offices of the Inspectors General from the Departments of Justice, Labor, and the Federal Deposit Insurance Corporation (FDIC) investigated the cases. This is a combined investigation with the Western District of Missouri, the Western District of Arkansas, the Eastern District of Arkansas, and the Public Integrity Section of the Department of Justice Criminal Division.

Link:

DOJ Press Release

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Section 7031(c) corruption designations for former Eastern European officials

April 12, 2022, 6:45 am
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Public Designation of Former Officials of the Republic of North Macedonia and Bosnia and Herzegovina Due to Involvement in Significant Corruption

PRESS STATEMENT

NED PRICE, DEPARTMENT SPOKESPERSON

APRIL 11, 2022Share

The U.S. Department of State has publicly designated former Prime Minister of the Republic of North Macedonia Nikola Gruevski and former Director of the Department for Security and Counterintelligence (UBK) Sasho Mijalkov as well as Gordana Tadić of Bosnia and Herzegovina from the chief prosecutor’s office.  We have taken these actions in response to these former officials’ involvement in significant corruption.  Their actions undermined the rule of law, democratic institutions, and public processes in both countries and eroded the public’s faith in their governments.

In his official capacity as prime minister, Gruevski was involved in corrupt acts that included using his political influence and official power for personal benefit.  Specifically, there is credible information that Gruevski abused the power of his office to solicit and accept bribes in return for government contracts, misappropriated public funds, and interfered in electoral processes to benefit himself and his party politically.

In his official capacity as Director of the UBK, Mijalkov was involved in corrupt acts that included using his political influence and official power for personal benefit.  Specifically, there is credible information that Mijalkov abused the power of his office to solicit bribes in return for government contracts and interfered in electoral processes to benefit himself and his party politically.

In her official capacity as chief prosecutor of Bosnia and Herzegovina, Gordana Tadić used her influence to interfere with judicial processes.  Specifically, there is credible information that Tadić manipulated cases to protect political patrons from prosecution and failed to assign cases to prosecutors through an automated case distribution system designed to prevent prosecutor assignment decisions based on personal or political reasons.

These designations are made under Section 7031(c) of the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2022.  In addition to Gruevski, Mijalkov and Tadić, the Department of State is also designating their immediate family members under 7031(c).  This action renders Gruevski, Mijalkov, Tadić and their immediate family members ineligible for entry into the United States.

In addition, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed economic sanctions pursuant to Executive Order (E.O.) 14033 on seven individuals and one entity across four countries in the Western Balkans.  As a result of today’s action under E.O. 14033, all property and interests in property of those sanctioned that are in or come within the United States or that are in the possession or control of U.S. persons must be blocked and reported to OFAC.  Link here: Treasury Targets Actors for Destabilizing Behavior Throughout the Western Balkans | U.S. Department of the Treasury. 

Together, these designations reaffirm the U.S. commitment to supporting the rule of law and strengthening democratic institutions of the Republic of North Macedonia and Bosnia and Herzegovina.  The Department will continue to use authorities like this to promote accountability for corrupt actors in this region and globally.

For more information, please contact INL-PAPD@state.gov.

Link:

State Department Press Release

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Car Insurance Bribery Scheme head gets unlucky 7 in jail

April 13, 2022, 7:24 am
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Department of Justice

U.S. Attorney’s Office

Southern District of New York

FOR IMMEDIATE RELEASE

Friday, April 8, 2022

Senior Leader Of Massive No Fault Automobile Insurance Bribery Scheme Sentenced To 7 Years In Prison

Jelani Wray Paid Bribes To 911 Operators In Exchange For Confidential Accident Victim Information, Directed Accident Victims to an Illegal Medical Clinic that He Operated, and Received Millions of Dollars in Compensation for his Role in the Scheme.

Damian Williams, the United States Attorney for the Southern District of New York, announced today that JELANI WRAY, a senior leader of a conspiracy in which he and his co-conspirators bribed 911 operators, medical personnel, and police officers for the confidential information of tens of thousands of motor vehicle accident victims, was sentenced today to 84 months in prison.  WRAY was sentenced by United States District Judge Paul G. Gardephe.  He previously pled guilty on October 12, 2021, to making payments of bribes and gratuities to an agent of a federally funded organization. 

U.S. Attorney Damian Williams said: “Jelani Wray and the other leaders of this scheme brazenly exploited New York’s no fault automobile insurance laws by lining their pockets with millions of dollars in illegal profits.  In the process, they corrupted 911 operators, hospital workers and police officers; injured accident victims by depriving them of a choice in medical providers and attorneys, lying to them, and subjecting these victims to unwanted medical treatments; and caused licensed drivers in the state of New York to suffer higher insurance premiums by enabling the submission of millions of dollars in false medical reimbursement claims.  Wray and his coconspirators will now pay for their crimes, and this Office will never stop pursuing those who seek to profit by corrupting our public institutions.”

According to the allegations in the Indictment, the Superseding Information, court filings, and statements made in court:

JELANI WRAY was one of several leaders of a massive no fault automobile insurance scheme spanning New York and New Jersey from at least in or about 2013 through in or about 2019.  As part of the scheme, WRAY personally bribed and arranged for others to bribe 911 operators, medical personnel, and police officers for the confidential information of tens of thousands of motor vehicle accident victims.  Using this information, WRAY and his co-conspirators contacted victims, lied to them, and steered them to clinics and lawyers handpicked by WRAY and his associates.  These clinics and lawyers then paid WRAY and his associates kickbacks for these referrals, which they distributed to coconspirators as payments and bribes.

 Specifically, in approximately 2013, while WRAY was working as the manager of a medical clinic, WRAY and a coconspirator, ANTHONY ROSE, a/k/a “Todd Chambers,” reached an agreement that for each patient ROSE sent to the clinic, WRAY would pay him approximately $2,000 to $3,000 in illegal referral fees.

Thereafter, in or about 2016, WRAY began to recruit and acquire his own “lead sources,” which were individuals willing to sell the confidential information of motor vehicle accident victims.  From approximately 2016 through in or about December 2017, WRAY bribed at least five NYPD 911 operators to provide him with the names and numbers of motor vehicle accident victims.  WRAY then transferred this information to an illegal call center that was operated by ROSE and funded in part by WRAY.  ROSE’s call center called the unsuspecting accident victims, lied to them, and then steered them to particular clinics and lawyers that were part of ROSE and WRAY’s illegal referral network.  The clinics and lawyers then paid ROSE and WRAY kickbacks by cash and check.  WRAY also similarly recruited attorneys and clinics to participate in this portion of the scheme.

Among other things, WRAY concealed his bribery of the 911 operators by providing them with prepaid “burner” phones, using encrypted messaging applications to communicate with them, and by assigning them code names.  ROSE and WRAY also received further kickbacks for steering accident victims to a particular magnetic resonance imaging (MRI) facility.  In addition, in or about 2017, ROSE, WRAY, a paralegal (“Paralegal-1”), and a physician (“Physician-1”) agreed to open a medical clinic in the Bronx (“Clinic-1”). WRAY funded Clinic-1, steered accident victims to Clinic-1, and exercised substantial control over its medical operations, which is illegal under New York law, because WRAY is not a physician. 

WRAY received millions of dollars in illegal profits from his involvement in the various aspects of this scheme.  In addition to his prison sentence, WRAY, 37 of Brooklyn, New York, was sentenced to 3 years of supervised release.  He was also ordered to forfeit $2,200,000 and pay a fine of $250,000.

*                *                *

The United States Attorney’s Office charged JELANI WRAY and 26 other defendants in November 2019.  All 27 defendants admitted guilt; 25 of 27 defendants pleaded guilty and the remaining two defendants had their prosecutions deferred.  WRAY is the sixteenth defendant to have been sentenced; ten defendants have been sentenced to serve time in prison.  The principal aspects of each defendant’s sentence are reflected in the chart below.  To date, the defendants have also been ordered to pay approximately $5 million in forfeiture from this scheme. 

Mr. Williams praised the work of the FBI, the New York State Police, the New York City Police Department, the New York City Department of Financial Services, the Westchester County District Attorney’s Office, and the National Insurance Crime Bureau. 

This case is being handled by the Office’s Complex Frauds and Cybercrime Unit, and the White Plains Division. Assistant United States Attorneys Mathew Andrews and Louis A. Pellegrino are in charge of the prosecution.

Defendant

Age

Hometown

Principal Aspects of  Sentence

 

JELANI WRAY,

a/k/a “Lani,”

a/k/a “J.R.” 

37

Brooklyn, NY

 

7 years prison
3 years supervised release
$250,000 fine
$2,200,000 forfeiture ordered
 

 

NATHANIEL COLES,

a/k/a “Nat”

 

69

Cortlandt Manor, NY

 

5 years prison
3 years supervised release
$100,000 fine
$2,594,000 forfeiture ordered
 

 

ANTHONY ROSE, Jr.,

a/k/a “Sean Wells”

34

Cambria Heights, NY

 

2 years prison
2 years supervised release
$69,000 forfeiture ordered
 

 

CHRISTINA GARCIA,

a/k/a “Cindy”

37

Jersey City, NJ

 

366 days prison
3 years supervised release
$3,000 fine
$30,000 forfeiture ordered
 

 

LEON BLUE,

a/k/a “Boochie”

56

Brooklyn, NY

 

Time served prison (approx. two years)
3 years supervised release
$8,310 forfeiture ordered
 

 

CLARENCE FACEY,

a/k/a “Face”

36

Brooklyn, NY

 

6 months prison
2 years supervised release
$25,000 forfeiture ordered
 

 

ANGELA MELECIO,

a/k/a “Angie,”

a/k/a “P5”

 

43

Amityville, NY

 

Time served prison
3 years supervised release, with 6 months’ home confinement
250 hrs. community service
$8,000 forfeiture ordered
 

 

STEPHANIE PASCAL,

a/k/a “Steph,”

a/k/a “P2”

49

Brooklyn, NY

Time served prison
2 years supervised release
$2,000 forfeiture ordered
 

EDWARD ABAYEV,

a/k/a “Eddie”

 

54

 

Staten Island, NY

 

366 days prison
3 years supervised release
$20,000 fine
$18,000 forfeiture ordered
 

 

TONJA LEWIS,

a/k/a “J1”

 

55

Belleville, NJ

 

Time served prison
2 years supervised release
250 hrs. community service
$8,310 forfeiture ordered
 

 

BERLISA BRYAN,

a/k/a “Lisa”

 

55

Edison, NJ

 

Time served prison
3 years supervised release
250 hrs. community service
$20,000 forfeiture ordered
 

 

ANGELA MYERS,

a/k/a “Angie”

 

40

Brooklyn, NY

 

Time served prison
2 years supervised release
250 hrs. community service
$10,000 forfeiture ordered
 

 

SHAKEEMA FOSTER

 

29

Brooklyn, NY

 

Time served prison
2 years supervised release
250 hrs. community service
$3,000 forfeiture ordered
 

 

KOURTNEI WILLIAMS

 

35

Brooklyn, NY

 

 

6 months prison
2 years supervised release
$20,000 forfeiture ordered
 

 

 

MAKKAH SHABAZZ, a/k/a “Mecca”

 

45

Long Island City, NY

 

6 months prison
2 years supervised release
$36,000 forfeiture ordered
 

 

YANIRIS DELEON, a/k/a “Jen”

             

32

New York, NY

6 months prison
2 years supervised release
$10,000 forfeiture ordered

Link:

DOJ Press release

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FinCEN Advisory on Kleptocracy & Public Corruption

April 15, 2022, 6:15 am
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FinCEN Issues Advisory on Kleptocracy and Foreign Public Corruption

Immediate Release

April 14, 2022

WASHINGTON—The Financial Crimes Enforcement Network (FinCEN) today issued an advisory on kleptocracy and foreign public corruption, urging financial institutions to focus their efforts on detecting the proceeds of foreign public corruption—a priority for the U.S. Government as it continues to implement the U.S. Strategy on Countering Corruption. The advisory provides typologies and potential indicators of kleptocracy and other forms of foreign public corruption, namely bribery, embezzlement, extortion, and the misappropriation of public assets.

Kleptocrats and other corrupt public officials steal the public’s wealth for personal gain and use their positions of power and access to state-owned resources for their personal benefit. Like other criminal actors, corrupt public officials launder the proceeds of their corruption through a variety of means, including funneling money through shell companies or by purchasing various high-end assets, such as real estate, yachts, private jets and high value art.      

“Foreign public corruption erodes public trust and disproportionately harms the most vulnerable in societies. Russia’s further invasion of Ukraine is a yet another example of how a kleptocracy like Russia—a country whose government has been characterized for years by corruption, money laundering, malign influence, sanctions evasions and armed interventions abroad—harms not only its own citizens, but those living beyond its borders,” said FinCEN Acting Director Himamauli Das. “Financial institutions play a crucial role in identifying corrupt activity and associated money laundering on the part of foreign public officials and should remain vigilant and promptly report suspicious financial activity.”

The advisory highlights financial red flag indicators to assist financial institutions in preventing, detecting, and reporting suspicious transactions associated with kleptocracy and foreign public corruption. For purposes of suspicious activity reporting, financial institutions should consider the relevant facts and circumstances of each transaction, in keeping with their risk-based approach to compliance.

Additionally, the U.S. Department of the Treasury last month launched the Kleptocracy Asset Recovery Rewards Program, which offers rewards payments for information leading to seizure, restraint, or forfeiture of assets linked to foreign government corruption, including the Government of the Russian Federation. More information on eligibility for rewards payments and on submission of relevant information to the U.S. government can be found here. Those individuals with information are encouraged to contact Kleptocracy_Rewards@Treasury.gov or call +1 202-622-2050.

Links:

FinCEN Notice

FinCEN Advisory

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Businessman sentenced to pay restitution and 10 years in prison for bribery

April 18, 2022, 7:41 am
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Department of Justice

U.S. Attorney’s Office

Western District of Texas

FOR IMMEDIATE RELEASE

Friday, April 8, 2022

Mexican Businessman Who Absconded in 2015 Sentenced for Bribery

DEL RIO – A Mexican national who failed to appear for sentencing in 2015 was sentenced today to 10 years in prison and ordered to pay $884,174.47 in restitution for his role in a bribery scheme.

According to court documents, German Garcia Cano, 62, was the owner of GGC Enterprises, Inc., (GGC) a construction equipment rental company.  Between 2009 and 2012, Maverick County paid GGC hundreds of thousands of dollars leasing heavy equipment purportedly used in construction projects in Maverick County.  On October 9, 2014, Cano pleaded guilty to one count of paying a bribe to an agent of an organization receiving federal funds.  By pleading guilty Cano admitted he paid bribes to Maverick County employees to insure that GGC secured leasing contracts with Maverick County. 

On February 24, 2015, Cano was scheduled to be sentenced and failed to appear.  A warrant for his arrest was issued that same day.  In March 2015, the Court entered a bond forfeiture against Cano and a surety and a restraining order against Cano’s assets.  The United States subsequently garnished on bank accounts associated with Cano, including recovering $10,000 transferred to his sister, despite his fugitive status.  On July 8, 2021, Cano was rearrested and has remained in federal custody.

“The sentencing of German Cano today demonstrates our steadfast commitment to the pursuit of justice, even when criminals flee,” said U.S. Attorney Ashley C. Hoff.  “By paying bribes to receive government funds, Cano fostered a culture of corruption in Maverick County, undermining the public’s faith in government. Along with our law enforcement partners, we will continue to use all available resources to root out corruption and hold wrongdoers accountable.”

“Corruption damages the very fiber of our society, as it undermines public trust,” said Acting Special Agent in Charge Jason Hudson. “Thankfully, with today’s sentencing, the defendant in this case will now have to face the consequences of his actions.”

The FBI, with assistance from the Customs and Border Protection Office Internal Affairs; DEA; Texas Department of Public Safety Criminal Investigative Division; Texas Rangers; and Maverick County Sheriff’s Office, investigated the case.

Assistant U.S. Attorneys James Ward and Michael Galdo, with assistance from the Department of Justice’s Office of International Affairs, prosecuted the case.

Link:

DOJ Press Release

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Corruption coming to Washington in December!

April 19, 2022, 7:23 am
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The U.S. Government and Transparency International Announce 20th Edition of the International Anti-Corruption Conference

MEDIA NOTE

OFFICE OF THE SPOKESPERSON

APRIL 19, 2022Share

The U.S. Government, coordinated by the Department of State’s Bureau of International Narcotics and Law Enforcement Affairs (INL), is partnering with Transparency International (TI) to support the 20th edition of the International Anti-Corruption Conference (IACC) to be held in Washington, DC, December 6-10, 2022, with a theme of “Uprooting Corruption: Defending Democratic Values.”

Corruption undermines democracy and respect for human rights, impedes investment, stifles economic growth, hampers government services, and allows criminality to flourish.  Responding to this transnational threat, President Biden established fighting corruption as a core U.S. national security interest, releasing the first-ever U.S. Strategy on Countering Corruption, and elevating the fight against corruption as a pillar of the Summit for Democracy.  His Administration is expanding and leveraging diplomatic and foreign assistance tools to advance these efforts.

The U.S. Government’s partnerships with international organizations, governments, civil society, and the private sector have been critical to anti-corruption efforts around the world.  Through the IACC, the U.S. Government and TI will bring together over 10,000 people from 180 countries to continue building momentum for landmark anti-corruption initiatives.

For more information, please contact INL-PAPD@state.gov.

Link:

State Department Press Release

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Being an investment banker wasn’t enough: conviction for bribery & money laundering

April 21, 2022, 7:09 am
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Department of Justice

U.S. Attorney’s Office

Eastern District of New York

FOR IMMEDIATE RELEASE

Friday, April 8, 2022

Former Goldman Sachs Investment Banker Convicted in Massive Bribery and Money Laundering Scheme

Roger Ng Conspired with a Malaysian Socialite and Malaysian Government Officials to Pay Bribes to a Dozen Foreign Officials and to Launder Billions Embezzled from 1Malaysia Development Berhad 

BROOKLYN, NY – Ng Chong Hwa, also known as “Roger Ng,” a citizen of Malaysia and a former Managing Director of The Goldman Sachs Group, Inc. (Goldman Sachs), was convicted today by a federal jury in Brooklyn on all counts of a superseding indictment charging him with conspiring to launder billions of dollars embezzled from 1Malaysia Development Berhad (1MDB), conspiring to violate the Foreign Corrupt Practices Act (FCPA) by paying bribes to a dozen government officials in Malaysia and Abu Dhabi, and conspiring to violate the FCPA by circumventing the internal accounting controls of Goldman Sachs.  The verdict followed a seven-week trial before United States Chief District Judge Margo K. Brodie.

Breon Peace, United States Attorney for the Eastern District of New York; Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division; Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Ryan Korner, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, Los Angeles Field Office (IRS-CI), announced the verdict.

           “Today’s verdict is a resounding victory for justice and for the people of Malaysia who were the victims of this massive scheme that the defendant and his partners in crime carried out in a frenzy of greed to get rich by stealing millions of dollars from the 1MDB fund intended to benefit that country’s economy,” stated United States Attorney Peace.  “The Department of Justice and this Office are committed to addressing corporate culture by vigorously combating white-collar crime and holding corrupt individuals who seek to enrich themselves accountable for violating U.S. laws here and abroad.”

“Roger Ng participated in a massive bribery and money laundering scheme involving the corruption of high-level foreign officials in Malaysia and the United Arab Emirates,” stated Assistant Attorney General Polite.  “This trial demonstrates the commitment by the Department of Justice to prosecute and hold accountable individuals who engage in corruption and use our financial system to launder funds related to their illicit schemes. We will continue to pursue criminal wrongdoers and will seek to bring them to justice, wherever they are, deprive them of their ill-gotten gains, and, wherever possible, return corrupt proceeds to those harmed by corruption — as we have throughout our longstanding investigation into the 1MDB scheme.”

“By virtue of today’s verdict, Roger Ng stands convicted of significant crimes for his role in a conspiracy to launder billions of dollars misappropriated from 1MDB, a Malaysian state-owned fund created to pursue economic growth opportunities for Malaysia and its people.  While Ng and his associates greedily lined their pockets, the Malaysian people were left as victims who potentially suffered lost economic growth opportunity.  The FBI and our partners remain committed to identifying those who choose to engage in foreign corrupt practices and bringing justice to them around the world,” stated FBI Assistant Director-in-Charge Driscoll.

“Today’s conviction of Roger Ng demonstrates the cooperation of law enforcement and prosecutorial agencies around the world to combat foreign corruption.  Roger Ng and his co-conspirators enriched themselves while depriving the citizens of Malaysia of billions of dollars that was supposed to be invested on their behalf,” stated IRS-CI Special Agent-in-Charge Ryan L. Korner.  “The Internal Revenue Service-Criminal Investigation is proud to stand with our law enforcement partners in the United States and around the world who participated in this most significant investigation.”

1MDB is a Malaysian state-owned and controlled fund created to pursue investment and development projects for the economic benefit of Malaysia and its people. 

Ng was employed as a Managing Director by various subsidiaries of Goldman Sachs and acted as an agent and employee of Goldman Sachs from approximately 2005 to May 2014. 

As proved at trial, between approximately 2009 and 2014, Ng conspired with others to launder billions of dollars misappropriated and fraudulently diverted from 1MDB, including funds 1MDB raised in 2012 and 2013 through three bond transactions it executed with Goldman Sachs, known as “Project Magnolia,” “Project Maximus” and “Project Catalyze.”  As part of the scheme, Ng and others, including Tim Leissner, the former Southeast Asia Chairman and participating managing director of Goldman Sachs, conspired to pay more than a billion dollars in bribes to a dozen government officials in Malaysia and Abu Dhabi to obtain and retain lucrative business for Goldman Sachs, including the 2012 and 2013 bond deals.  They also conspired to launder the proceeds of their criminal conduct through the U.S. financial system by funding major Hollywood films such as “The Wolf of Wall Street,” and purchasing, among other things, artwork from New York-based Christie’s auction house including a $51 million Jean-Michael Basquiat painting, a $23 million diamond necklace, millions of dollars in Hermes handbags from a business based on Long Island, and a luxury real estate in Manhattan.

Ng, co-defendant Low Taek Jho, a wealthy Malaysian socialite also known as “Jho Low,” and their co-conspirators used Low’s close relationships with high-ranking government officials in Malaysia and Abu Dhabi to obtain and retain business for Goldman Sachs through the promise and payment of hundreds of millions of dollars in bribes.  In the course of executing the scheme, Ng conspired with others at Goldman Sachs to circumvent the investment bank’s internal accounting controls.  Through its work for 1MDB during that time, Goldman Sachs received approximately $600 million in fees and revenues, while Ng received $35 million for his role in the bribery and money laundering scheme.  In total, Ng and the other co-conspirators misappropriated more than $2.7 billion from 1MDB. 

The evidence at trial included testimony from 26 witnesses called by the government; emails, phone records and bank records showing the defendant’s share of the scheme’s criminal proceeds was transferred to a bank account held by an offshore shell company in the name of the defendant’s mother-in-law; travel records; and receipts for luxury items purchased with the criminal proceeds.

Low remains a fugitive.  In August 2018, Leissner pleaded guilty to a two-count criminal information charging him with conspiring to launder money and conspiring to violate the FCPA by both paying bribes to various Malaysian and Abu Dhabi officials and circumventing the internal accounting controls of Goldman Sachs. Leissner has been ordered to forfeit $43 million and shares of stock valued at more than $200 million.  Leissner is awaiting sentencing.

In October 2020, Goldman Sachs and Goldman Sachs (Malaysia) Sdn. Bhd. (GS Malaysia), its Malaysian subsidiary, admitted to conspiring to violate the anti-bribery provisions of the FCPA in connection with the scheme.  Goldman Sachs entered into a deferred prosecution agreement with the United States Attorney’s Office for the Eastern District of New York and the Department of Justice’s Criminal Division, Fraud Section and Money Laundering and Asset Forfeiture (MLARS), and GS Malaysia pleaded guilty in the U.S. District Court for the Eastern District of New York to a one-count criminal information.  Goldman Sachs also paid more than $2.9 billion as part of a coordinated resolution with criminal and civil authorities in the United States, the United Kingdom, Singapore, and elsewhere.

The investigation was jointly conducted by the FBI’s International Corruption Unit and IRS-Criminal Investigation.  The government’s criminal case is being handled by the Business and Securities Fraud Section of the United States Attorney’s Office for the Eastern District of New York and the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Fraud Section.  Assistant United States Attorneys Alixandra E. Smith, Drew G. Rolle and Dylan Stern, and Bank Integrity Unit Chief Jennifer E. Ambuehl of MLARS and Co-Principal Deputy Chief of the Fraud Section Brent Wible are prosecuting the case.  The Criminal Division’s Office of International Affairs provided critical assistance in this case. 

The Department also appreciates the significant cooperation and assistance provided by the U.S. Securities and Exchange Commission, and the Board of Governors of the Federal Reserve System along with the Federal Reserve Bank of New York.  The Department also appreciates the significant assistance provided by the government of Malaysia, including the Attorney General’s Chambers of Malaysia, the Royal Malaysia Police and NCB Interpol Malaysia.  The Department also appreciates the significant assistance provided by the Attorney General’s Chambers of Singapore, the Singapore Police Force-Commercial Affairs Division, the Office of the Attorney General of Switzerland, the Judicial Investigating Authority of the Grand Duchy of Luxembourg and the Criminal Investigation Department of the Grand-Ducal Police of Luxembourg.

The Defendant:

NG CHONG HWA (also known as “Roger Ng”)
Age:  49
Kuala Lumpur, Malaysia

E.D.N.Y. Docket No. 18-CR-538 (MKB)

Link:

DOJ Press Release

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Husband and wife sentenced for accepting bribes

April 26, 2022, 7:17 am
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Department of Justice

U.S. Attorney’s Office

Eastern District of New York

FOR IMMEDIATE RELEASE

Thursday, April 14, 2022

Former Nassau County Executive Edward Mangano and His Wife Linda Mangano Sentenced for Corruption and Related Charges

Earlier today, at the federal courthouse in Central Islip, Edward Mangano, the former Nassau County Executive, and his wife Linda Mangano were sentenced by United States District Judge Joan M. Azrack to 12 years, and 15 months’, imprisonment, respectively, following their convictions after a seven-week trial.  Edward Mangano was convicted of multiple counts of accepting bribes and kickbacks in exchange for official government action, and for conspiracy to obstruct justice.  Linda Mangano was also convicted of conspiracy to obstruct justice, obstruction of justice and making false statements to Federal Bureau of Investigation (FBI) agents in connection with her employment by Long Island restaurateur Harendra Singh.  Edward Mangano was also ordered to pay a $20,000 fine.

Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, FBI, New York Field Office (FBI), announced the sentences.

“Edward Mangano, as County Executive, gave Nassau residents widespread corruption and dishonesty instead of truth and integrity. Linda Mangano took affirmative steps to mislead a federal investigation to keep her husband in power and to maintain their way of life,” U.S. Attorney Peace stated.  “Today’s sentence should send a strong, unambiguous message to any public official willing to place their personal interest above the public’s, and to those inner circle members who corruptly attempt to protect them from prosecution: my Office will employ all resources at its disposal to investigate, prosecute, and convict you in order to restore the public’s faith in our elected officials.” 

Mr. Peace thanked the FBI and the Internal Revenue Service Criminal Investigation for their work on the case.

The evidence at trial established that between January 2010 and February 2015, Edward Mangano engaged in schemes to solicit and receive bribes and kickbacks from Singh.  In return for the cash and personal benefits he received, Mangano, who served as Nassau County Executive from January 2010 to December 2017, performed official actions to benefit Singh in connection with his businesses.

The Town of Oyster Bay (TOB) Loan Scheme 

Several weeks after Edward Mangano took office as Nassau County Executive in January 2010, he urged TOB Supervisor to help Singh obtain financing in order to make required capital improvements at TOB Beach and The Woodlands at the TOB golf course, by authorizing the TOB to indirectly guarantee four bank loans totaling approximately $20 million.  Mangano used his official position to ensure that the TOB backed the loans.  In April 2010, Singh hired Linda Mangano for a sham job as the purported Director of Marketing for Singh’s businesses.  Shortly thereafter, the TOB indirectly guaranteed the first of four personal loans to Singh related to the beach and the golf course.  Singh paid for five vacations, hardwood flooring, a custom-made office chair, a massage chair and a watch for the Manganos, as well as over $450,000 in total for Linda Mangano’s no-show job.  

Obstruction of Justice

Edward and Linda Mangano conspired to obstruct a federal grand jury investigation when they schemed with Singh to fabricate examples of work never performed by Linda Mangano at the Water’s Edge, in an attempt to thwart a grand jury investigation.  On May 20, 2015 and May 22, 2015, Linda Mangano made false statements to the FBI and federal prosecutors about the work she claimed to have performed for Singh.

The government’s case is being handled by the Office’s Long Island Criminal Division.  Assistant United States Attorneys Catherine M. Mirabile, Christopher Caffarone and former Eastern District Assistant United States Attorney Lara Treinis Gatz are in charge of the prosecution.  Assistant United States Attorney Madeline O’Connor is responsible for the forfeiture of assets.

The Defendants:

EDWARD MANGANO
Age:  60
Bethpage, New York

LINDA MANGANO
Age:  59
Bethpage, New York

E.D.N.Y. Docket No. 16-CR-540 (S-2) (JMA)

Link:

DOJ Press Release

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