WASHINGTON D.C., DC — On Thursday, a Bridgeport jury convicted a Westport resident who was an oil and gas trader for participating in a scheme to bribe Brazilian government officials and launder money to secure business for two Connecticut-based commodities trading companies, according to the U.S. Department of Justice.
Glenn Oztemel, 65, paid bribes to officials of Petróleo Brasileiro S.A., or Petrobras, a Brazilian state-owned oil and gas company, to acquire lucrative contracts for Arcadia Fuels Ltd., or Arcadia, and Freepoint Commodities LLC, or Freepoint, according to court documents and evidence presented in court.
Principal Deputy Assistant Attorney General Nicole Argentieri, head of the Justice Department’s Criminal Division, said Oztemel paid and laundered more than $1 million in bribes to employees of the Brazilian state-owned oil and gas company to gain contracts for his commodities-trading companies in Connecticut.
“Bribing public officials to win business undermines the rule of law and creates unfair competition,” Argentieri said. “Today’s verdict reaffirms the Criminal Division’s commitment to combatting foreign corruption that violates U.S. law.”
Trial evidence revealed that between 2010 and 2018, Oztemel worked as a senior oil and gas trader. He started at Arcadia before moving to Freepoint. Prosecutors said that with the assistance of others, he paid and caused the payment of bribes to Petrobras officials for their assistance in helping Arcadia and Freepoint gain and retain fuel oil contracts with Petrobras. They also provided Oztemel and others with confidential information regarding Petrobras’ fuel oil business, according to prosecutors.
By disguising them as fake consulting fees and commissions, Oztemel and his co-conspirators caused Arcadia and Freepoint to make corrupt payments to a third-party intermediary and agent, 74-year-old Eduardo Innecco, prosecutors said. They added that Oztemel knew Innecco would pay some of the funds to Brazilian officials, including Houston-based Petrobras trader Rodrigo Berkowitz.
According to prosecutors, Oztemel, Innecco and their co-conspirators used coded language like “breakfast” and “freight deviation” when referencing the bribes; they communicated using personal email accounts, encrypted messaging apps, disposable phones and fictitious names such as “Spencer Kazisnaf” and “Nikita Maksimov.”
Investigators uncovered that Oztemel paid more than $1 million in bribe money, which moved from trading companies to shell companies around the world controlled by Innecco, who then deposited funds in a bank account in Uruguay controlled by Berkowitz’s father.
The jury convicted Oztemel of conspiracy to violate the Foreign Corrupt Practices Act, or FCPA, conspiracy to commit money laundering, three counts of violating the FCPA and two counts of money laundering. He faces a maximum penalty of five years in prison on each of the FCPA and conspiracy to violate the FCPA counts and a maximum penalty of 20 years in prison on each of the money laundering and money laundering conspiracy counts.
U.S. Attorney Vanessa Roberts Avery of the District of Connecticut said bribery and money laundering are well-established federal crimes. She said her office and its law enforcement partners will keep a watchful eye to ensure that representatives from U.S. businesses operating overseas comply with American laws.
“This conviction serves as another warning to anyone involved in the financial industry who seeks to gain an unfair advantage and illegally profit, both here in the U.S. and abroad,” Avery said.
Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office said individuals and companies who collude to thwart free market competition through bribery ultimately erode public trust in the marketplace.
“Today’s conviction demonstrates the commitment of the FBI and our partners to investigate anti-competitive behavior and hold accountable those who try to cheat the system for their own benefit and profit,” Davis said.
Prosecutors said that a federal district court judge will determine Oztemel’s sentencing after considering the U.S. Sentencing Guidelines and other statutory factors.
In a similar matter, last December Freepoint admitted to bribing officials in Brazil, violating the anti-bribery provisions of the FCPA. Prosecutors said Freepoint entered into a deferred prosecution agreement with the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the District of Connecticut.
Freepoint agreed to pay more than $98 million in criminal penalties and forfeiture as part of the resolution.
----
Dalton Zbierski is a digital content producer and writer at FOX61 News. He can be reached at dzbierski@FOX61.com.
----
Do you have a story idea or something on your mind you want to share? We want to hear from you! Email us at newstips@fox61.com.
----
HERE ARE MORE WAYS TO GET FOX61 NEWS
Download the FOX61 News APP
iTunes: Click here to download
Google Play: Click here to download
Stream Live on ROKU: Add the channel from the ROKU store or by searching FOX61.
Steam Live on FIRE TV: Search ‘FOX61’ and click ‘Get’ to download.
