In a notable case unfolding in Bridgeport, Connecticut, a former oil and gas trader has been found guilty of participating in a lengthy scheme aimed at bribing Brazilian officials.
This deceptive operation spanned nearly eight years and was designed to secure contracts for two commodities trading companies based in Connecticut.
Details of the Case
Glenn Oztemel, 65, hailing from Westport, Connecticut, was convicted for his role in paying bribes to employees of Petrobras, Brazil’s state-run oil and gas company.
His actions were intended to land profitable contracts for Arcadia Fuels Ltd. and Freepoint Commodities LLC.
According to court documents, Oztemel funneled over $1 million in bribes, seeking an unfair advantage in business dealings.
A Strong Message from Authorities
Nicole M. Argentieri, Principal Deputy Assistant Attorney General, emphasized the seriousness of Oztemel’s actions, stating, “Bribing public officials to win business undermines the rule of law and creates unfair competition.”
U.S. Attorney Vanessa Roberts Avery added that this conviction serves as a stern warning to those in the financial industry contemplating similar illicit activities.
The message is clear: the Justice Department is committed to enforcing laws against corruption, both domestically and internationally.
How the Scheme Worked
During his tenure as a senior oil and gas trader, first at Arcadia and then at Freepoint from 2010 to 2018, Oztemel orchestrated bribes to secure contracts and gain confidential information from Petrobras.
The scheme involved disguising these corrupt payments as consulting fees, funneled through an intermediary named Eduardo Innecco, who was aware that a portion of the funds would be sent to Brazilian officials, including a trader based in Houston.
To cover their tracks, Oztemel and his co-conspirators utilized coded language and various means of communication, such as personal emails and encrypted messaging.
Their tactics included using fictitious names and disposable phones to avoid detection.
Conviction and Potential Sentencing
Oztemel was found guilty on multiple counts, including conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and money laundering.
Each FCPA violation could result in a maximum of five years in prison, while money laundering charges carry a potential penalty of up to 20 years.
The final sentence will be determined by a federal district court judge, taking into account various legal guidelines.
Ongoing Investigations and Related Cases
The investigation led to unsealed charges against Oztemel and Innecco in February 2023, and a superseding indictment in August included Oztemel’s brother, Gary, who has since pleaded guilty to money laundering.
Innecco, recently arrested in France, awaits extradition to the United States.
It’s important to note that an indictment is merely a formal accusation, and Innecco is presumed innocent until proven guilty in court.
In a separate but related development, Freepoint admitted to bribing Brazilian officials in December 2023, resulting in a deferred prosecution agreement and over $98 million in penalties.
Collaboration and Investigation Efforts
The FBI’s Los Angeles Field Office played a significant role in investigating this case, collaborating with various international agencies and authorities from multiple countries.
The prosecution team includes skilled attorneys from the Criminal Division’s Fraud Section and the District of Connecticut.
For those interested in the Justice Department’s enforcement of corruption laws, further details can be found on their official website.
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