4 March 2012
Aristide accused of taking bribes from Miami businesses
By Jacqueline Charles and Jay Weaver, The Miami Herald
(Read the original article here)
Former Haiti President Jean-Bertrand Aristide is once again in the crosshairs of the U.S. government, this time for allegedly pocketing millions of dollars in bribes from Miami businesses that brokered long-distance phone deals with Haiti's government-owned telecommunications company, according to court records and legal sources.
Aristide is not identified by name in a recent federal indictment charging four South Florida business people and two former Haitian government officials. But defense attorneys say "Official B" referenced in the corruption- and money-laundering indictment is indeed the ex-president.
According to the indictment, Official B and senior officials of Haiti Teleco, the telecommunications company owned by Haiti's Central Bank, allegedly received payments totaling about $2.3 million from Miami businesses Cinergy Telecommunications and Uniplex Telecom Technologies. The businesses are accused of using "shell" companies to kick back the money to those officials.
Aristide's lawyer, Ira Kurzban, declined to comment about the Justice Department's investigation because the ex-president hasn't been charged with any crime. But, Kurzban said: "I view this as part of the same smear campaign that the United States has orchestrated against Aristide since he was first elected in 1990."
The indictment alleges that the bribes were passed to Aristide via "Company A," a reference to Digitek, a suspected front owned by Aristide's brother-in-law, Lesly Lavelanet. He could not be reached for comment at his Coral Springs home.
Since an earlier related indictment was returned by a federal grand jury in 2009, a dozen South Florida business people and Haitian officials have been charged in the high-profile case, alleging the payment of kickbacks in exchange for discounted long-distance phone rates. Profits from those lower rates were pocketed by the Haitian officials — not the government's phone company. So far, seven of those defendants have been convicted of corruption or money laundering, including Patrick Joseph, who pleaded guilty in February to accepting bribes. Joseph is cooperating with Justice Department lawyers and is a crucial witness in the investigation of Aristide, according to sources familiar with the case.
Joseph, who served as Aristide's director general of Haiti Teleco in March 2001 to June 2003, has told U.S. authorities that he shared some of those kickbacks with the former president, the sources said.
Joseph's father, Venel Joseph, appointed by Aristide, was the governor of the Bank of Haiti, the central bank, during that period and is referenced in the indictment as "Official A.''
The Central Bank was used to distribute the kickbacks paid by the Miami businesses, the indictment says.
Patrick Joseph's Miami attorneys, Guy Lewis and Richard Dansoh, declined to comment. Justice Department officials also would not comment.
At Joseph's plea hearing last month, a prosecutor said "half" — or $1 million — of the alleged kickbacks were "intended" for "Official B, an official in the executive branch of the Haitian government."
"In exchange for these bribes, Official B and Joseph provided Uniplex and Cinergy with various business advantages, including an exclusive agreement to market certain calling cards at a favorable rate,"
Justice Department lawyer James Koukios said in court.
"In addition, Joseph was aware of and agreed that additional bribe payments to Official B would be laundered through Company A," Koukios said, without mentioning Digitek by name.
The revelation that federal officials are still pursuing Aristide, years after a U.S. grand jury investigation failed to nab him on drug-trafficking and money-laundering allegations, comes at a politically charged time in Haiti.
Haitian media reported last week that President Michel Martelly's government had indicted Aristide for corruption and drug trafficking during his rule, immediately triggering anger among his supporters.
Haiti's justice minister told The Miami Herald the reports were false.
Still, thousands marched through the streets of Haiti's capital Wednesday, singing pro-Aristide slogans while bashing Martelly, to mark the eighth anniversary of Aristide's ouster from power on Feb.29, 2004.
The demonstration — the biggest anti-Martelly protest since he came to power in May — showed that Aristide still enjoys a measure of popularity. He returned to Haiti from South Africa last March over the strong objections of the Obama administration.
Before it was privatized last year at the behest of the U.S. government, Haiti Teleco was a corruption-plagued, money-losing company that fueled the bank accounts of its executives. Fewer than 2 percent of Haitians had service from its landline monopoly, but it had a lucrative long-distance business. After the January 2010 earthquake, the company finally got a lifeline when a firm named Viettel, run by Vietnam's military, bought a major stake in the entity, reducing Haiti's shares to 40 percent.
The controversy over Haiti Teleco's corrupt past will play out again Monday, when a former senior executive, Jean René Duperval, faces trial on money-laundering charges in Miami federal court as part of the initial indictment. He is accused of receiving bribes from the same Miami businesses.
The trial of Duperval, Haiti Teleco's former director of international relations, highlights the Justice Department's persistence in pursuing the bribery case and Aristide.
Some question the zeal. But Alex Dupuy, a sociology professor at Wesleyan University who has written about the two-time ex-president, said "if they have solid evidence of his involvement in bribery or other criminal activities, they should indict him and bring him to justice."
The U.S. government may be sending a signal to Aristide, called Titid by his admirers, to think twice about trying to re-enter the political scene, observers said.
"The display of popular support for Aristide is very worrisome to the U.S., so indicting Titid before a potential comeback makes perfect sense," said Robert Fatton, a Haiti expert at the University of Virginia.
Still, unless the Justice Department has an air-tight case, arresting Aristide could have volatile consequences, observers said.
Corruption and drug-trafficking charges have long dogged Aristide.
Haiti's interim government produced four blistering reports from two government investigative commissions, alleging he had embezzled more than $20 million of his country's meager public funds.
But the Haitian government's financial watchdog agency could not prove the allegations. Also, a civil lawsuit filed in Miami by the interim government, gained no traction.
Meanwhile, federal prosecutors investigated Aristide for allegedly accepting bribes from drug traffickers. But they could not make their case because of a lack of financial documents to back up convicted cocaine kingpin Jacques Ketant's accusations, according to sources familiar with that probe.
Now, the mere mention of Aristide as Official B in the Foreign Corrupt Practices Act indictment filed by the Justice Department in January marks the first time he has been implicated in the U.S. bribery investigation into Haiti's state-owned telecommunications company.
From 2001 to 2004, "Official B was an official in the executive branch of the Haitian government," says the indictment, describing the exact period of Aristide's second term as president."I am led to believe that Official B is the former president of Haiti, Aristide," said veteran Miami criminal defense attorney Joel Hirschhorn, who represents Cinergy and two of its executives in the case.
"There is no doubt that Official B is Aristide based on the language in the indictment," said Miami lawyer David Weinstein, who was the chief of narcotics in the U.S. Attorney's Office during the past decade. He and other prosecutors won convictions against several Haitian government and police officials for accepting payoffs from drug traffickers, who used the country to ship cocaine to the United States.
But Weinstein cautioned that the Justice Department will face daunting challenges in making a money-laundering case against Aristide, even if the cooperating witness, Joseph, points investigators in the right direction.
There is a looming deadline in the probe because of the statute of limitations. Also crucial: Internal Revenue Service agents must find bank or financial records to show that Aristide received payments, if he did.
"Without someone producing a picture of him taking the money or agents uncovering a bank account directly linking him to payments, they are going to have a hard time building a case to win a conviction,"
Weinstein said.
Last week, Hirschhorn succeeded in getting Cinergy dismissed as a defendant before Monday's trial.
"My clients' dealings with Haiti Teleco were perfectly legitimate,"
said Hirschhorn, who added that Cinergy's top executives, now fugitives in Brazil, only met Aristide once for a brief moment. "They helped Haiti Teleco get through some very difficult and trying times."
Showing posts with label Teleco. Show all posts
Showing posts with label Teleco. Show all posts
Monday, March 26, 2012
Friday, August 5, 2011
TWO TELECOMMUNICATIONS EXECUTIVES CONVICTED BY MIAMI JURY ON ALL COUNTS FOR THEIR INVOLVEMENT IN SCHEME TO BRIBE TELECO OFFICIALS
FOR IMMEDIATE RELEASE
TWO TELECOMMUNICATIONS EXECUTIVES CONVICTED BY MIAMI JURY ON ALL COUNTS FOR THEIR INVOLVEMENT IN SCHEME TO BRIBE OFFICIALS AT STATE-OWNED TELECOMMUNICATIONS COMPANY IN HAITI
www.justice.gov
WASHINGTON—Joel Esquenazi and Carlos Rodriguez, former executives of Terra Telecommunications Corp., have been convicted by a federal jury on all counts for their roles in a scheme to pay bribes to Haitian government officials at Telecommunications D’Haiti S.A.M (Haiti Teleco), a state-owned telecommunications company. The jury reached its verdict yesterday after five hours of deliberations, following a two-and-a-half-week trial.
The convictions were announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida; and Special Agent in Charge Jose A. Gonzalez of Internal Revenue Service, Criminal Investigation Division (IRS-CID), Miami Field Office.
“These defendants authorized more than $800,000 in illegal bribe payments to Haitian officials in exchange for business advantages – a clear violation of the FCPA,” said Assistant Attorney General Breuer. “This verdict is another powerful example that bribery of government officials – whether at home or abroad – has serious consequences. In finding the defendants guilty on all charged counts, the jury sent an unmistakable message that paying off foreign officials does not, in fact, pay off.”
“These individuals conspired and made corrupt payments to foreign government officials for the purpose of securing business advantages for their company,” said U.S. Attorney Ferrer. “The FCPA helps to create a more level playing field in which businesses can compete fairly and sends the message that American businesses are simply not up for sale.”
“These convictions send a strong and clear message that we will aggressively pursue investigations on subjects that use shell companies to launder funds,” said IRS Special Agent in Charge Gonzalez. “IRS-CID will utilize its financial investigative expertise to unravel any complex money laundering scheme leaving no financial stones unturned.”
Joel Esquenazi, 52, of Miami, and Carlos Rodriguez, 55, of Davie, Fla., were convicted of one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and wire fraud; seven counts of FCPA violations; one count of money laundering conspiracy; and 12 counts of money laundering.
According to the evidence presented at trial, Esquenazi was the president and Rodriguez was the executive vice president of Terra, which was headquartered in Miami-Dade County, Fla. Haiti Teleco was the sole provider of land line telephone service in Haiti. Terra had a series of contracts with Teleco that allowed the company’s customers to place telephone calls to Haiti.
According to the evidence presented at trial, the defendants participated in a scheme to commit foreign bribery and money laundering from November 2001 through March 2005, during which time the telecommunications company paid more than $890,000 to shell companies to be used for bribes to Teleco officials. Esquenazi and Rodriguez authorized these bribe payments to successive directors of international relations at Teleco.
The purpose of these bribes, according to the evidence presented at trial, was to obtain various business advantages from the Haitian officials for Terra, including the issuance of preferred telecommunications rates, reductions in the number of minutes for which payment was owed, and the continuance of Terra’s telecommunications connection with Haiti. To conceal the bribe payments, the defendants used various shell companies to receive and forward the payments. In addition, they created false records claiming that the payments were for “consulting services,” which were never intended to be performed or actually performed.
Esquenazi was remanded to the custody of the U.S. Marshals. Rodriguez remains free on bond. Sentencing for both defendants currently is scheduled for Oct. 13, 2011.
On April 27, 2009, Antonio Perez, a former controller at Terra, pleaded guilty to one count of conspiracy to violate the FCPA and money laundering. On Jan. 12, 2010, he was sentenced to 24 months in prison, which he is currently serving.
On May 15, 2009, Juan Diaz, the president of J.D. Locator Services, pleaded guilty to one count of conspiracy to violate the FCPA and money laundering. He admitted to receiving more than $1 million in bribe money from telecommunications companies. On July 30, 2010, he was sentenced to 57 months in prison, which he is currently serving.
On Feb. 19, 2010, Jean Fourcand, the president and director of Fourcand Enterprises Inc., pleaded guilty to one count of money laundering for receiving and transmitting bribe monies in the scheme. On May 5, 2010, he was sentenced to six months in prison.
On March 12, 2010, Robert Antoine, a former director of international affairs for Haiti Teleco, pleaded guilty to one count of conspiracy to commit money laundering. He admitted to receiving more than $1 million in bribes from Miami-based telecommunications companies. On June 2, 2010, he was sentenced to 48 months in prison, which he is currently serving.
In a superseding indictment, Washington Vasconez Cruz, Amadeus Richers, Cinergy Telecommunications Inc., Patrick Joseph, Jean Rene Duperval and Marguerite Grandison are charged in a related scheme to commit foreign bribery and money laundering from December 2001 through January 2006. No trial date is currently set. An indictment is merely an accusation, and defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
The conspiracy to commit violations of the FCPA and wire fraud count carries a maximum penalty of five years in prison and a fine of the greater of $250,000 or twice the value gained or lost. The FCPA counts each carry a maximum penalty of five years in prison and a fine of the greater of $100,000 or twice the value gained or lost. The conspiracy to commit money laundering count carries a maximum penalty of 20 years in prison and a fine of the greater of $500,000 or twice the value of the property involved in the transaction. The money laundering counts each carry a maximum penalty of 20 years in prison and a fine of the greater of $500,000 or twice the value of the property involved in the transaction. The indictment also seeks forfeiture which will determined by the court at a later date.
The government’s investigation is ongoing. The Department of Justice is grateful to the government of Haiti for continuing to provide substantial assistance in gathering evidence during this investigation. In particular, Haiti’s financial intelligence unit, the Unité Centrale de Renseignements Financiers (UCREF), the Bureau des Affaires Financières et Economiques (BAFE), which is a specialized component of the Haitian National Police, and the Ministry of Justice and Public Security provided significant cooperation and coordination in this ongoing investigation.
To learn more about the government’s FCPA enforcement efforts, go to www.justice.gov/criminal/fraud/fcpa.
The case is being prosecuted by Senior Trial Attorneys Nicola J. Mrazek and James M. Koukios of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Aurora Fagan of the U.S. Attorney’s Office for the Southern District of Florida. The Criminal Division’s Office of International Affairs also provided assistance in this matter. The cases were investigated by the IRS-CID Miami Field Office.
TWO TELECOMMUNICATIONS EXECUTIVES CONVICTED BY MIAMI JURY ON ALL COUNTS FOR THEIR INVOLVEMENT IN SCHEME TO BRIBE OFFICIALS AT STATE-OWNED TELECOMMUNICATIONS COMPANY IN HAITI
www.justice.gov
WASHINGTON—Joel Esquenazi and Carlos Rodriguez, former executives of Terra Telecommunications Corp., have been convicted by a federal jury on all counts for their roles in a scheme to pay bribes to Haitian government officials at Telecommunications D’Haiti S.A.M (Haiti Teleco), a state-owned telecommunications company. The jury reached its verdict yesterday after five hours of deliberations, following a two-and-a-half-week trial.
The convictions were announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida; and Special Agent in Charge Jose A. Gonzalez of Internal Revenue Service, Criminal Investigation Division (IRS-CID), Miami Field Office.
“These defendants authorized more than $800,000 in illegal bribe payments to Haitian officials in exchange for business advantages – a clear violation of the FCPA,” said Assistant Attorney General Breuer. “This verdict is another powerful example that bribery of government officials – whether at home or abroad – has serious consequences. In finding the defendants guilty on all charged counts, the jury sent an unmistakable message that paying off foreign officials does not, in fact, pay off.”
“These individuals conspired and made corrupt payments to foreign government officials for the purpose of securing business advantages for their company,” said U.S. Attorney Ferrer. “The FCPA helps to create a more level playing field in which businesses can compete fairly and sends the message that American businesses are simply not up for sale.”
“These convictions send a strong and clear message that we will aggressively pursue investigations on subjects that use shell companies to launder funds,” said IRS Special Agent in Charge Gonzalez. “IRS-CID will utilize its financial investigative expertise to unravel any complex money laundering scheme leaving no financial stones unturned.”
Joel Esquenazi, 52, of Miami, and Carlos Rodriguez, 55, of Davie, Fla., were convicted of one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and wire fraud; seven counts of FCPA violations; one count of money laundering conspiracy; and 12 counts of money laundering.
According to the evidence presented at trial, Esquenazi was the president and Rodriguez was the executive vice president of Terra, which was headquartered in Miami-Dade County, Fla. Haiti Teleco was the sole provider of land line telephone service in Haiti. Terra had a series of contracts with Teleco that allowed the company’s customers to place telephone calls to Haiti.
According to the evidence presented at trial, the defendants participated in a scheme to commit foreign bribery and money laundering from November 2001 through March 2005, during which time the telecommunications company paid more than $890,000 to shell companies to be used for bribes to Teleco officials. Esquenazi and Rodriguez authorized these bribe payments to successive directors of international relations at Teleco.
The purpose of these bribes, according to the evidence presented at trial, was to obtain various business advantages from the Haitian officials for Terra, including the issuance of preferred telecommunications rates, reductions in the number of minutes for which payment was owed, and the continuance of Terra’s telecommunications connection with Haiti. To conceal the bribe payments, the defendants used various shell companies to receive and forward the payments. In addition, they created false records claiming that the payments were for “consulting services,” which were never intended to be performed or actually performed.
Esquenazi was remanded to the custody of the U.S. Marshals. Rodriguez remains free on bond. Sentencing for both defendants currently is scheduled for Oct. 13, 2011.
On April 27, 2009, Antonio Perez, a former controller at Terra, pleaded guilty to one count of conspiracy to violate the FCPA and money laundering. On Jan. 12, 2010, he was sentenced to 24 months in prison, which he is currently serving.
On May 15, 2009, Juan Diaz, the president of J.D. Locator Services, pleaded guilty to one count of conspiracy to violate the FCPA and money laundering. He admitted to receiving more than $1 million in bribe money from telecommunications companies. On July 30, 2010, he was sentenced to 57 months in prison, which he is currently serving.
On Feb. 19, 2010, Jean Fourcand, the president and director of Fourcand Enterprises Inc., pleaded guilty to one count of money laundering for receiving and transmitting bribe monies in the scheme. On May 5, 2010, he was sentenced to six months in prison.
On March 12, 2010, Robert Antoine, a former director of international affairs for Haiti Teleco, pleaded guilty to one count of conspiracy to commit money laundering. He admitted to receiving more than $1 million in bribes from Miami-based telecommunications companies. On June 2, 2010, he was sentenced to 48 months in prison, which he is currently serving.
In a superseding indictment, Washington Vasconez Cruz, Amadeus Richers, Cinergy Telecommunications Inc., Patrick Joseph, Jean Rene Duperval and Marguerite Grandison are charged in a related scheme to commit foreign bribery and money laundering from December 2001 through January 2006. No trial date is currently set. An indictment is merely an accusation, and defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
The conspiracy to commit violations of the FCPA and wire fraud count carries a maximum penalty of five years in prison and a fine of the greater of $250,000 or twice the value gained or lost. The FCPA counts each carry a maximum penalty of five years in prison and a fine of the greater of $100,000 or twice the value gained or lost. The conspiracy to commit money laundering count carries a maximum penalty of 20 years in prison and a fine of the greater of $500,000 or twice the value of the property involved in the transaction. The money laundering counts each carry a maximum penalty of 20 years in prison and a fine of the greater of $500,000 or twice the value of the property involved in the transaction. The indictment also seeks forfeiture which will determined by the court at a later date.
The government’s investigation is ongoing. The Department of Justice is grateful to the government of Haiti for continuing to provide substantial assistance in gathering evidence during this investigation. In particular, Haiti’s financial intelligence unit, the Unité Centrale de Renseignements Financiers (UCREF), the Bureau des Affaires Financières et Economiques (BAFE), which is a specialized component of the Haitian National Police, and the Ministry of Justice and Public Security provided significant cooperation and coordination in this ongoing investigation.
To learn more about the government’s FCPA enforcement efforts, go to www.justice.gov/criminal/fraud/fcpa.
The case is being prosecuted by Senior Trial Attorneys Nicola J. Mrazek and James M. Koukios of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Aurora Fagan of the U.S. Attorney’s Office for the Southern District of Florida. The Criminal Division’s Office of International Affairs also provided assistance in this matter. The cases were investigated by the IRS-CID Miami Field Office.
Saturday, March 13, 2010
Former Haitian Government Official Pleads Guilty to Conspiracy to Commit Money Laundering in Foreign Bribery Scheme
Former Haitian Government Official Pleads Guilty to Conspiracy to Commit Money Laundering in Foreign Bribery Scheme
WASHINGTON, March 12, 2010 /PRNewswire-USNewswire/ -- A former official of the Republic of Haiti's state-owned national telecommunications company pleaded guilty today to a money laundering conspiracy in connection with a foreign bribery scheme, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division; U. S. Attorney Jeffrey H. Sloman of the Southern District of Florida; and Daniel W. Auer, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI) Miami Field Office.
"Today's guilty plea represents another important milestone in our ongoing effort to tackle overseas corruption," said Assistant Attorney General Lanny A. Breuer of the Criminal Division. "The message here is simple: Whether you are located in the United States or elsewhere, we will not allow U.S. financial institutions to be used as a vehicle for laundering illicit proceeds."
"Today's conviction should be a warning to corrupt government officials everywhere that neither they nor their money will find any safe haven in the United States," said U.S. Attorney Jeffrey H. Sloman.
"The IRS is committed to enforcing the anti-money laundering laws and will continue to work with our international partners to investigate violations worldwide," said Special Agent in Charge Daniel W. Auer. "Haitian law enforcement should be commended for their commitment and professionalism throughout this investigation."
According to the indictment filed on Dec. 4, 2009, Robert Antoine, 62, of Miami and Haiti, was the director of international affairs for Haiti's state-owned national telecommunications company, Telecommunications D'Haiti (Haiti Teleco) from May 2001 to April 2003. In that position, Antoine had primary responsibility for the relationships between U.S. telecommunications companies and Haiti Teleco. Antoine admitted during his guilty plea that he accepted bribes from three U.S. telecommunications companies and thereby defrauded Haiti Teleco. To disguise the origin of these funds, Antoine admitted he laundered them through intermediary companies, including J.D. Locator Services. Juan Diaz, the president of J.D. Locator, pleaded guilty on May 15, 2009, to conspiracy to commit violations of the Foreign Corrupt Practices Act (FCPA) and money laundering. Antoine admitted that a portion of the J.D. Locator funds were also laundered by Jean Fourcand of Fourcand Enterprises, who pleaded guilty on Feb. 19, 2010, to money laundering.
Antoine admitted during his guilty plea that $800,000 of these bribes were intended to be given to him by a U.S. telecommunications company for which Joel Esquenazi was the president and director, Carlos Rodriguez was the executive vice president, and Antonio Perez was, at times, the controller. Perez pleaded guilty on Apr. 27, 2009, to conspiring to commit FCPA violations and money laundering.
Esquenazi and Rodriguez, as well as Jean Rene Duperval, who was director of international relations of Haiti Teleco from June 2003 to April 2004, and Duperval's sister, Marguerite Grandison, were indicted along with Antoine on Dec. 4, 2009.
An indictment is merely an accusation, and defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Antoine faces a maximum penalty of 20 years in prison and a fine of the greater of $250,000 or twice the value of the property involved in the transaction. Antoine also agreed to a forfeiture order of $1,580,771. Sentencing is scheduled for May 27, 2010.
The Department of Justice is grateful to the government of Haiti for providing substantial assistance in gathering evidence during this investigation. In particular, Haiti's financial intelligence unit, the Unite Centrale de Renseignements Financiers (UCREF), the Bureau des Affaires Financieres et Economiques (BAFE), which is a specialized component of the Haitian National Police, and the Ministry of Justice and Public Security provided significant cooperation and coordination in this ongoing investigation.
The case was prosecuted by Trial Attorney Nicola J. Mrazek of the Criminal Division's Fraud Section, Trial Attorney Kevin Gerrity of the Criminal Division's Asset Forfeiture and Money Laundering Section, and Assistant U.S. Attorney Aurora Fagan of the U.S. Attorney's Office for the Southern District of Florida. The Criminal Division's Office of International Affairs also provided assistance in this matter. The case was investigated by the IRS-CI Miami Field Office.
SOURCE U.S. Department of Justice
WASHINGTON, March 12, 2010 /PRNewswire-USNewswire/ -- A former official of the Republic of Haiti's state-owned national telecommunications company pleaded guilty today to a money laundering conspiracy in connection with a foreign bribery scheme, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division; U. S. Attorney Jeffrey H. Sloman of the Southern District of Florida; and Daniel W. Auer, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI) Miami Field Office.
"Today's guilty plea represents another important milestone in our ongoing effort to tackle overseas corruption," said Assistant Attorney General Lanny A. Breuer of the Criminal Division. "The message here is simple: Whether you are located in the United States or elsewhere, we will not allow U.S. financial institutions to be used as a vehicle for laundering illicit proceeds."
"Today's conviction should be a warning to corrupt government officials everywhere that neither they nor their money will find any safe haven in the United States," said U.S. Attorney Jeffrey H. Sloman.
"The IRS is committed to enforcing the anti-money laundering laws and will continue to work with our international partners to investigate violations worldwide," said Special Agent in Charge Daniel W. Auer. "Haitian law enforcement should be commended for their commitment and professionalism throughout this investigation."
According to the indictment filed on Dec. 4, 2009, Robert Antoine, 62, of Miami and Haiti, was the director of international affairs for Haiti's state-owned national telecommunications company, Telecommunications D'Haiti (Haiti Teleco) from May 2001 to April 2003. In that position, Antoine had primary responsibility for the relationships between U.S. telecommunications companies and Haiti Teleco. Antoine admitted during his guilty plea that he accepted bribes from three U.S. telecommunications companies and thereby defrauded Haiti Teleco. To disguise the origin of these funds, Antoine admitted he laundered them through intermediary companies, including J.D. Locator Services. Juan Diaz, the president of J.D. Locator, pleaded guilty on May 15, 2009, to conspiracy to commit violations of the Foreign Corrupt Practices Act (FCPA) and money laundering. Antoine admitted that a portion of the J.D. Locator funds were also laundered by Jean Fourcand of Fourcand Enterprises, who pleaded guilty on Feb. 19, 2010, to money laundering.
Antoine admitted during his guilty plea that $800,000 of these bribes were intended to be given to him by a U.S. telecommunications company for which Joel Esquenazi was the president and director, Carlos Rodriguez was the executive vice president, and Antonio Perez was, at times, the controller. Perez pleaded guilty on Apr. 27, 2009, to conspiring to commit FCPA violations and money laundering.
Esquenazi and Rodriguez, as well as Jean Rene Duperval, who was director of international relations of Haiti Teleco from June 2003 to April 2004, and Duperval's sister, Marguerite Grandison, were indicted along with Antoine on Dec. 4, 2009.
An indictment is merely an accusation, and defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Antoine faces a maximum penalty of 20 years in prison and a fine of the greater of $250,000 or twice the value of the property involved in the transaction. Antoine also agreed to a forfeiture order of $1,580,771. Sentencing is scheduled for May 27, 2010.
The Department of Justice is grateful to the government of Haiti for providing substantial assistance in gathering evidence during this investigation. In particular, Haiti's financial intelligence unit, the Unite Centrale de Renseignements Financiers (UCREF), the Bureau des Affaires Financieres et Economiques (BAFE), which is a specialized component of the Haitian National Police, and the Ministry of Justice and Public Security provided significant cooperation and coordination in this ongoing investigation.
The case was prosecuted by Trial Attorney Nicola J. Mrazek of the Criminal Division's Fraud Section, Trial Attorney Kevin Gerrity of the Criminal Division's Asset Forfeiture and Money Laundering Section, and Assistant U.S. Attorney Aurora Fagan of the U.S. Attorney's Office for the Southern District of Florida. The Criminal Division's Office of International Affairs also provided assistance in this matter. The case was investigated by the IRS-CI Miami Field Office.
SOURCE U.S. Department of Justice
Tuesday, December 8, 2009
Florida Executives, Haitian Government Officials Indicted for their Alleged Participation in Bribery Scheme
Two Florida Executives, One Florida Intermediary and Two Former Haitian Government Officials Indicted for their Alleged Participation in Foreign Bribery Scheme
U.S. Department of Justice
WASHINGTON - Two Florida executives of a Miami-Dade County-based telecommunications company, the president of Florida-based Telecom Consulting Services Corp., and two former Haitian government officials were charged in an indictment unsealed today for their alleged roles in a foreign bribery, wire fraud and money laundering scheme, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division, Acting U. S. Attorney Jeffrey H. Sloman of the Southern District of Florida and Special Agent in Charge Daniel W. Auer of the Internal Revenue Service - Criminal Investigation’s (IRS-CI) Miami Field Office.
According to the indictment, the defendants allegedly participated in a scheme to commit foreign bribery and money laundering from November 2001 through March 2005, during which time the telecommunications company paid more than $800,000 to shell companies to be used for bribes to foreign officials of the Republic of Haiti’s state-owned national telecommunications company, Telecommunications D’Haiti (Haiti Teleco).
According to court documents, the telecommunications company executed a series of contracts with Haiti Teleco that allowed the company’s customers to place telephone calls to Haiti. The alleged corrupt payments were authorized by the telecommunications company’s president and vice president and were allegedly paid to successive Haitian government officials at Haiti Teleco. According to the indictment, the purpose of these bribes was to obtain various business advantages from the Haitian officials for the telecommunications company, including issuing preferred telecommunications rates, reducing the number of minutes for which payment was owed, and giving a variety of credits toward sums owed, as well as to defraud the Republic of Haiti of revenue. To conceal the bribe payments, the defendants allegedly used various shell companies to receive and forward on the payments. In addition, they allegedly created false records claiming that the payments were for “consulting services,” which were never intended or performed.
The five individuals charged in the indictment are:
Joel Esquenazi, 53, of Miami, the former president of the telecommunications company, is charged with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and to commit wire fraud, seven counts of FCPA violations, one count of conspiracy to commit money laundering and 12 counts of money laundering;
Carlos Rodriguez, 53, of Davie, Fla., the former executive vice president of the telecommunications company, is charged with one count of conspiracy to violate the FCPA and commit wire fraud, seven counts of FCPA violations, one count conspiracy to commit money laundering and 12 counts of money laundering;
Robert Antoine, 61, of Miami and Haiti, a former director of international relations for telecommunications at Haiti Teleco, is charged with one count of conspiracy to commit money laundering;
Jean Rene Duperval, 43, of Miramar, Fla. and Haiti, a former director of international relations for telecommunications at Haiti Teleco, is charged with one count of conspiracy to commit money laundering and 12 counts of money laundering; and
Marguerite Grandison, 40, of Miramar, the former president of Telecom Consulting Services Corp., and Duperval’s sister, is charged with one count of conspiracy to violate the FCPA and commit wire fraud, seven counts of FCPA violations, one count conspiracy to commit money laundering and 12 counts of money laundering.
An indictment is merely an accusation, and defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
The conspiracy to commit violations of the FCPA and wire fraud count carries a maximum penalty of five years in prison and a fine of the greater of $250,000 or twice the value gained or lost. The FCPA counts each carry a maximum penalty of five years in prison and a fine of the greater of $100,000 or twice the value gained or lost. The conspiracy to commit money laundering count carries a maximum penalty of 20 years in prison and a fine of the greater of $500,000 or twice the value of the property involved in the transaction. The money laundering counts each carry a maximum penalty of 20 years in prison and a fine of the greater of $500,000 or twice the value of the property involved in the transaction. The indictment also gives notice of criminal forfeiture.
On April 27, 2009, Antonio Perez, the former controller of the telecommunications company, pleaded guilty to conspiring to commit FCPA violations and money laundering for his role in the payment of bribes to former officials of Haiti Telco.
On May 15, 2009, Juan Diaz, the president of J.D. Locator Services, a shell intermediary company, pleaded guilty to one count of conspiracy to violate the FCPA and money laundering. He admitted to receiving more than $1 million in bribe money from telecommunication companies. Diaz admitted he then laundered the money for a former Haitian government official. Diaz is scheduled to be sentenced on Jan. 29, 2010.
The government’s investigation is ongoing. The Department of Justice is grateful to the government of Haiti for continuing to provide substantial assistance in gathering evidence during this investigation. In particular, Haiti’s financial intelligence unit, the Unité Centrale de Renseignements Financiers (UCREF), the Bureau des Affaires Financières et Economiques (BAFE), which is a specialized component of the Haitian National Police, and the Ministry of Justice and Public Security provided significant cooperation and coordination in this ongoing investigation. The indictment was unsealed today after the arrest of Duperval by the BAFE on Dec. 5, 2009, and his subsequent initial appearance today in U.S. District Court in Miami. Rodriguez and Grandison also made initial appearances today in Miami. Arrest warrants have been issued for Antoine and Esquenazi.
The case is being prosecuted by Trial Attorney Nicola J. Mrazek of the Criminal Division’s Fraud Section, Trial Attorney Kevin Gerrity of the Criminal Division’s Asset Forfeiture and Money Laundering Section, and Assistant U.S. Attorney Aurora Fagan of the U.S. Attorney’s Office for the Southern District of Florida. The Criminal Division’s Office of International Affairs also provided assistance in this matter. The cases were investigated by the IRS-CI Miami Field Office.
U.S. Department of Justice
WASHINGTON - Two Florida executives of a Miami-Dade County-based telecommunications company, the president of Florida-based Telecom Consulting Services Corp., and two former Haitian government officials were charged in an indictment unsealed today for their alleged roles in a foreign bribery, wire fraud and money laundering scheme, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division, Acting U. S. Attorney Jeffrey H. Sloman of the Southern District of Florida and Special Agent in Charge Daniel W. Auer of the Internal Revenue Service - Criminal Investigation’s (IRS-CI) Miami Field Office.
According to the indictment, the defendants allegedly participated in a scheme to commit foreign bribery and money laundering from November 2001 through March 2005, during which time the telecommunications company paid more than $800,000 to shell companies to be used for bribes to foreign officials of the Republic of Haiti’s state-owned national telecommunications company, Telecommunications D’Haiti (Haiti Teleco).
According to court documents, the telecommunications company executed a series of contracts with Haiti Teleco that allowed the company’s customers to place telephone calls to Haiti. The alleged corrupt payments were authorized by the telecommunications company’s president and vice president and were allegedly paid to successive Haitian government officials at Haiti Teleco. According to the indictment, the purpose of these bribes was to obtain various business advantages from the Haitian officials for the telecommunications company, including issuing preferred telecommunications rates, reducing the number of minutes for which payment was owed, and giving a variety of credits toward sums owed, as well as to defraud the Republic of Haiti of revenue. To conceal the bribe payments, the defendants allegedly used various shell companies to receive and forward on the payments. In addition, they allegedly created false records claiming that the payments were for “consulting services,” which were never intended or performed.
The five individuals charged in the indictment are:
Joel Esquenazi, 53, of Miami, the former president of the telecommunications company, is charged with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and to commit wire fraud, seven counts of FCPA violations, one count of conspiracy to commit money laundering and 12 counts of money laundering;
Carlos Rodriguez, 53, of Davie, Fla., the former executive vice president of the telecommunications company, is charged with one count of conspiracy to violate the FCPA and commit wire fraud, seven counts of FCPA violations, one count conspiracy to commit money laundering and 12 counts of money laundering;
Robert Antoine, 61, of Miami and Haiti, a former director of international relations for telecommunications at Haiti Teleco, is charged with one count of conspiracy to commit money laundering;
Jean Rene Duperval, 43, of Miramar, Fla. and Haiti, a former director of international relations for telecommunications at Haiti Teleco, is charged with one count of conspiracy to commit money laundering and 12 counts of money laundering; and
Marguerite Grandison, 40, of Miramar, the former president of Telecom Consulting Services Corp., and Duperval’s sister, is charged with one count of conspiracy to violate the FCPA and commit wire fraud, seven counts of FCPA violations, one count conspiracy to commit money laundering and 12 counts of money laundering.
An indictment is merely an accusation, and defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
The conspiracy to commit violations of the FCPA and wire fraud count carries a maximum penalty of five years in prison and a fine of the greater of $250,000 or twice the value gained or lost. The FCPA counts each carry a maximum penalty of five years in prison and a fine of the greater of $100,000 or twice the value gained or lost. The conspiracy to commit money laundering count carries a maximum penalty of 20 years in prison and a fine of the greater of $500,000 or twice the value of the property involved in the transaction. The money laundering counts each carry a maximum penalty of 20 years in prison and a fine of the greater of $500,000 or twice the value of the property involved in the transaction. The indictment also gives notice of criminal forfeiture.
On April 27, 2009, Antonio Perez, the former controller of the telecommunications company, pleaded guilty to conspiring to commit FCPA violations and money laundering for his role in the payment of bribes to former officials of Haiti Telco.
On May 15, 2009, Juan Diaz, the president of J.D. Locator Services, a shell intermediary company, pleaded guilty to one count of conspiracy to violate the FCPA and money laundering. He admitted to receiving more than $1 million in bribe money from telecommunication companies. Diaz admitted he then laundered the money for a former Haitian government official. Diaz is scheduled to be sentenced on Jan. 29, 2010.
The government’s investigation is ongoing. The Department of Justice is grateful to the government of Haiti for continuing to provide substantial assistance in gathering evidence during this investigation. In particular, Haiti’s financial intelligence unit, the Unité Centrale de Renseignements Financiers (UCREF), the Bureau des Affaires Financières et Economiques (BAFE), which is a specialized component of the Haitian National Police, and the Ministry of Justice and Public Security provided significant cooperation and coordination in this ongoing investigation. The indictment was unsealed today after the arrest of Duperval by the BAFE on Dec. 5, 2009, and his subsequent initial appearance today in U.S. District Court in Miami. Rodriguez and Grandison also made initial appearances today in Miami. Arrest warrants have been issued for Antoine and Esquenazi.
The case is being prosecuted by Trial Attorney Nicola J. Mrazek of the Criminal Division’s Fraud Section, Trial Attorney Kevin Gerrity of the Criminal Division’s Asset Forfeiture and Money Laundering Section, and Assistant U.S. Attorney Aurora Fagan of the U.S. Attorney’s Office for the Southern District of Florida. The Criminal Division’s Office of International Affairs also provided assistance in this matter. The cases were investigated by the IRS-CI Miami Field Office.
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