Two More Executives Charged in “Massive” Bribery Scheme in Venezuela
The Department of Justice and the Securities and Exchange Commission announced April 14 two more arrests in connection with a “massive” conspiracy to bribe Venezuelan government officials. These are the fifth and sixth individuals to be charged in this scheme; the previous four have all pleaded guilty but none has yet been sentenced.
A DOJ press release states that the former chief executive officer and a managing partner of a New York-based brokerage firm are charged with violating the Foreign Corrupt Practices Act by paying bribes to a senior official in Venezuela’s state economic development bank in exchange for her directing the bank’s bond trading business to their company. According to court documents, this scheme yielded over $60 million in commissions for the brokerage firm from late 2008 through 2012.
Both former officials are also charged with committing and conspiracy to commit money laundering, and one faces charges of conspiring to obstruct an examination by the SEC to conceal the true facts of the company’s relationship with the Venezuelan bank.