By Jonathan Stempel
A Connecticut oil and gas trader was found guilty in a scheme to bribe officials at Brazil's state-owned oil company, Petrobras, leading to a victory for two Connecticut trading companies. Glenn Oztemel, 65, of Westport, Connecticut, faced seven counts, including money laundering and violating the federal Foreign Corrupt Practices Act.
Oztemel and another defendant, Eduardo Innecco, were accused of bribing officials to secure contracts and gain privileged information about Petrobras' fuel oil business for Arcadia Fuels and Freepoint Commodities.
The scheme involved over $1 million in bribes split between Petrobras officials in Brazil and a Petrobras fuel trader in Houston. Coded language like "breakfast" and "freight deviation" was used to disguise the bribes.
The illegal activities took place from 2010 to 2018. Oztemel worked for both Arcadia and Freepoint before retiring in 2020.
Innecco is awaiting extradition from France, and Oztemel's brother, Gary Oztemel, pleaded guilty to a related money laundering charge in June.
Last year, Freepoint entered a deferred prosecution agreement and agreed to pay over $98 million to resolve U.S. bribery charges. Brazilian authorities had also investigated Freepoint employees as part of Operation Car Wash, a large-scale bribery probe involving Petrobras.
Berkowitz, a Petrobras fuel trader, pleaded guilty to money laundering conspiracy in 2019 and is awaiting sentencing.
Analysis:
This case highlights the serious consequences of engaging in corrupt practices in the business world. Bribing officials for business advantages not only violates the law but also damages a company's reputation and can result in hefty fines and legal consequences. It is crucial for companies and individuals to prioritize ethical conduct and compliance with anti-corruption laws to avoid such situations and protect their finances and reputation.