Category: Unaoil

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Another Unaoil Bribery Conviction Overturned

By John Lee.

The UK’s Court of Appeal has reportedly overturned the conviction of Paul Bond, who was jailed last year in relation to the Unaoil bribery scandal in Iraq.

Mr Bond (69), a former senior sales manager at SBM Offshore (SBM), had been sentenced to three and a half years in prison on two counts of conspiracy to give corrupt payments to Iraqi public officials to secure lucrative oil contracts in post-occupation Iraq.

According to Bond’s legal team, key evidence was withheld from the defence during the trial.

In December, Ziad Akle, Unaoil’s territory manager for Iraq, has had his conviction for bribery quashed.

(Sources: Evening Standard, Reuters)

The post Another Unaoil Bribery Conviction Overturned first appeared on Iraq Business News.

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Unaoil Bribery Conviction Quashed

By John Lee.

Ziad Akle, Unaoil‘s territory manager for Iraq, has had his conviction for bribery quashed by the UK’s Court of Appeal today (Friday).

He had been sentenced to five years’ imprisonment in July 2020 having been found guilty of paying over $500,000 in bribes to secure a $55-million contract to supply offshore mooring buoys in Iraq.

The court found that the refusal by Serious Fraud Office (SFO) to provide key documents to the defence was “a serious failure by the SFO to comply with their duty,” adding that “that failure was particularly regrettable given that some of the documents had a clear potential to embarrass the SFO in their prosecution of this case.“

Paul Bond, a former senior sales manager at SBM Offshore (SBM), which was a client of Unaoil, had his request for leave to appeal against his sentence denied.

The full judgement can be read here.

 More here, here and here.

(Source: England and Wales Court of Appeal – Criminal Division)

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UK SFO reclaims £100,000 from Unaoil Executive

Following a successful investigation and conviction of four individuals for corruption at Unaoil, the UK’s Serious Fraud Office (SFO) has recovered criminal gains of almost £100,000 from a former senior executive.

The full amount must now be paid into the public purse within 28 days.

Earlier this year, the SFO was praised by HM Crown Prosecution Service Inspectorate (HMCPSI) for its work to recover the proceeds of crime, with cases “handled proactively and efficiently by dedicated and skilled staff.”

This latest recovery means the SFO’s confiscation of illicit gains since 2017 stands at well over £1.2 billion. Other notable successes include the £1.2 million secured from the luxury West London property of corrupt Brazilian agent Julio Faerman and the £2 million recouped from the sale of two properties and a cache of jewellery linked to suspected Birmingham fraudster Nisar Afzal.

Commenting on today’s court order, Emma Luxton, Head of Proceeds of Crime and International Assistance at the SFO, said: “The SFO relentlessly pursues those who line their own pockets with illicit gains and we have a proud record of recovering funds for victims and for the UK taxpayer.”

Stephen Whiteley, a former territory manager for Unaoil, was found guilty in July 2020 of paying over $500,000 in bribes to win a $55 million contract for Unaoil to supply oil infrastructure in Iraq. The SFO secured the convictions against Whiteley and three other senior oil executives in an investigation which uncovered schemes to pay a total of $17 million in bribes to win $1.7 billion in contracts for Unaoil in Iraq.

In October 2021, the SFO announced that Petrofac Limited had been ordered to pay £77 million after it admitted failing to prevent senior executives at Petrofac from systematically paying £32 million in bribes to win over £2.6 billion in oil and gas contracts in the Middle East. It was the third set of convictions in the case after David Lufkin, former Head of Sales at Petrofac, pleaded guilty to 11 counts of bribery in 2019 and 3 counts of bribery in 2021. The SFO’s Petrofac investigation originated from its investigation into Unaoil.

The SFO’s Proceeds of Crime Division continues to investigate the criminal gains of the convicted Unaoil executives.

(Source: UK SFO)

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Fourth Oil Exec Jailed for Iraq Bribery

Paul Bond has today been sentenced to three and half years’ imprisonment for conspiring with others to bribe Iraqi public officials to secure lucrative oil contracts in post-occupation Iraq.

Earlier this week, Bond, a former senior sales manager at SBM Offshore (SBM), was found guilty on two counts of conspiracy to give corrupt payments following a retrial of his case at Southwark Crown Court.

This was the fourth conviction the SFO secured in its wide-scale Unaoil bribery investigation, which uncovered the payment of over $17m worth of bribes to secure $1.7bn worth of contracts for Unaoil and its clients.

In 2007, the Iraqi Ministry of Oil set out a ‘master plan’ to rebuild Iraq’s oil infrastructure, which had been destroyed after years of conflict. The post-occupation government tasked the state-owned South Oil Company (SOC) to commission the construction of new oil pipelines and the installation of single offshore mooring buoys (SPMs) in the Persian Gulf.

Together with Unaoil employees, Paul Bond funnelled $900,000 in bribes to Iraqi public officials at the SOC and the Ministry of Oil, which bought access to sensitive information, allowing Bond and others to skew the tendering process in SBM’s favour. SBM went on to win a $55m contract for the provision of SPMs.

Lisa Osofsky, Director of the Serious Fraud Office, said:

“Bond and his co-conspirators manipulated the tendering process for an infrastructure project vital to Iraq’s developing economy, with no regard for the impact.

The string of convictions in this case demonstrate the SFO’s determination to root out and prosecute corrupt practices in all corners of the globe working with law enforcement partners across the world. “

Bond’s conviction follows that of former Unaoil territory managers Stephen Whiteley and Ziad Akle, who were last year found guilty of conspiring to bribe Iraqi public officials to secure substantial oil contracts. In July 2019, Basil Al Jarah, Unaoil’s former Iraq partner, pleaded guilty to five counts of conspiracy to give corrupt payments, and later asked for a number of additional offences to be taken into consideration, in total admitting to paying over $17m in bribes to secure contracts worth $1.7bn.

Ziad Akle was sentenced to five years’ imprisonment, Stephen Whiteley to three years’ imprisonment, and Basil Al Jarah to three years and four months’ imprisonment for their crimes.

The SFO would like to thank the Australian Federal Police, the French Parquet National Financier, the Police Judiciaires of the Principality of Monaco, the Fiscal Information and Investigation Service (FIOD) of the Netherlands, the United States Department of Justice, Greater Manchester Police, the Metropolitan Police, the National Crime Agency and West Mercia Constabulary for their valuable assistance in this case.

More here.

(Source: SFO)

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Former Unaoil Exec Jailed over Bribery in Iraq

Former Unaoil executive sentenced for paying bribes to win $1.7-billion worth of contracts

Basil Al Jarah has today been sentenced to three years and four months’ imprisonment for paying in excess of $17m in bribes to dishonestly secure approximately $1.7bn worth of contracts in post-occupation Iraq.

Al Jarah, Unaoil‘s former Iraq partner, conspired with others to pay millions of dollars in bribes to public officials at the South Oil Company and Iraqi Ministry of Oil. These bribes secured contracts for Unaoil and its clients to construct oil pipelines, offshore mooring buoys in the Persian Gulf, and other infrastructure projects, collectively worth just over $1.7bn.

These contracts formed part of the Iraqi Ministry of Oil’s ‘Master Plan’ to rebuild its oil export capacity and revitalise the Iraqi economy after years of war and occupation.

Director of the Serious Fraud Office Lisa Osofsky said:

“Al Jarah and his co-conspirators’ machinations, driven by greed and heartless avarice, compromised the fairness of the bidding process and ultimately drove up the price a war-torn country had to pay for essential infrastructural upgrades, earning Unaoil and its clients vast profits in the process.

“This was a classic case of corruption, where powerful men took advantage of the desperation and vulnerability of others to line their own pockets.  I’m proud that the SFO could bring these men to justice.“

Al Jarah pleaded guilty to five offences of conspiracy to give corrupt payments in July 2019 in relation to two projects; one to install three mooring buoys and one to construct two oil pipelines. Co-conspirators on the mooring buoys bribery, Stephen Whiteley and Ziad Akle, were found guilty of one and two counts, respectively, of conspiracy to give corrupt payments in July 2020. Akle was sentenced to five years’ imprisonment and Whiteley to three years’ imprisonment by HHJ Beddoe in July 2020. A further individual, Paul Bond, faces retrial in January 2021.

At his sentencing hearing on 8 October 2020 Al Jarah asked for further offences to be taken into consideration in relation to two other projects: one to install an oil platform and one to install a third oil pipeline.

(Source: UK SFO)

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Fmr Unaoil Exec Jailed for Iraq Bribery

Ziad Akle, Unaoil‘s territory manager for Iraq, has been sentenced to five years’ imprisonment for paying over $500,000 in bribes to secure a $55m contract to supply offshore mooring buoys.

The new buoys formed part of the post-occupation Iraqi government’s “Master Plan” to rebuild Iraq’s oil industry and thereby expand the country’s oil export capacity. To ensure Unaoil benefitted from these state-run projects, Akle, conspiring with Stephen Whiteley and others, bribed public officials at the South Oil Company to secure contracts for Unaoil and its clients.

In his sentencing, HHJ Beddoe said:

“The offences were committed across borders at a time of serious need for the government of Iraq to rebuild after years of sanctions and the devastation of war. They were utterly exploitative at a time when the economic and political situation in Iraq was extremely fragile.”

A jury at Southwark Crown Court found Akle guilty on two counts of conspiracy to give corrupt payments. Another individual, Stephen Whiteley, was found guilty of one count of conspiracy to give corrupt payments in relation to the same crime. He will be sentenced on a date to be determined.

SFO Director Lisa Osofsky said:

“Ziad Akle and his co-conspirators exploited a country reeling from years of dictatorship and military occupation to line his own pockets and win business. It is this combination of greed and heartless avarice that led to these convictions.

“Today’s sentencing sends a clear message that the United Kingdom and the SFO will not tolerate criminal activity that undermines the fairness and integrity of international business.“

The convictions followed the guilty pleas of co-conspirator Basil Al Jarah who, in July 2019, admitted five offences of conspiracy to give corrupt payments. Al Jarah, who admitted to paying bribes totalling over $6million to secure contracts worth $800m for the supply of oil pipelines and offshore mooring buoys, is due to be sentenced at Southwark Crown Court on 8 October 2020.

(Source: SFO)

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Iraq Corruption Case: Former Oil Execs Convicted

By John Lee.

The UK’s Serious Fraud Office (SFO) has secured convictions against two former oil executives who conspired to give corrupt payments to secure contracts in Iraq.

A jury at Southwark Crown Court found Ziad Akle guilty on two counts and Stephen Whiteley guilty on one count of conspiracy to give corrupt payments. The convictions follow the guilty pleas of co-conspirator Basil Al Jarah who, in July 2019, admitted five offences of conspiracy to give corrupt payments.

In the years of reconstruction following the overthrow of Saddam Hussein in 2003, the three men conspired with others to pay bribes to public officials at the Iraqi South Oil Company (SOC) and, and in Basil Al Jarah’s case the Iraqi Ministry of Oil, to secure oil contracts for Unaoil and its clients.

The post-occupation Iraqi government had commissioned the South Oil Company to run projects as part of a “Master Plan” to rebuild Iraq’s oil industry and thereby expand the country’s oil export capacity. This included the installation of offshore mooring buoys and new oil pipelines.

To ensure Unaoil benefitted from these state-run projects, the defendants and co-conspirators conspired to bribe public officials at the South Oil Company and Ministry of Oil to secure contracts for Unaoil and its clients SBM Offshore. Basil Al Jarah also conspired to bribe public officials at the South Oil Company and the Ministry of Oil to secure contracts for Unaoil and its client Leighton Offshore.

Basil Al Jarah admitted to paying bribes totalling over $6million to secure contracts worth $800m for the supply of oil pipelines and offshore mooring buoys. Ziad Akle and Stephen Whiteley were found guilty of paying over $500,000 in bribes to secure the $55m contract for the offshore mooring buoys.

SFO Director Lisa Osofsky said:

“These men dishonestly and corruptly took advantage of a government reeling from dictatorship and occupation, and trying to reconstruct a war-torn state. They abused the system to cut out competitors and line their own pockets.

“It is our mission to pursue and bring to justice those who use criminal means to weaken the integrity of business.“

The SFO would like to thank the Australian Federal Police, the French Parquet National Financier, the Police Judiciaires of the Principality of Monaco, the Fiscal Information and Investigation Service (FIOD) of the Netherlands, the United States Department of Justice, Greater Manchester Police, the Metropolitan Police, the National Crime Agency and West Mercia Constabulary for their valuable assistance in this case.

The men are due to be sentenced on 22 and 23 July 2020.

More here.

(Source: UK SFO)

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UK Drops Unaoil-related Probe into ABB

By John Lee.

The UK’s Serious Fraud Office (SFO) has dropped its investigation into ABB linked to the Unaoil case.

After a thorough and detailed review of the available evidence, the SFO concluded that this case did not meet the relevant test for prosecution as defined in the Code for Crown Prosecutors.

The SFO announced its investigation into ABB Ltd in February 2017 following a self-report by representatives acting on behalf of the company.

(Source: UK SFO)

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Iraq Bribery Trial starts in London

By John Lee.

The trial has begun in London of three British businessmen accused of conspiring to pay bribes totalling $6m (£4.6m) to win contracts in Iraq worth $800 million.

According to the UK’s Serious Fraud Office (SFO), Monaco-based Unaoil bribed Iraqi officials to help Dutch-based SBM Offshore [Single Buoy Moorings], and Singapore’s Leighton Offshore, to secure the contracts between 2005 and 2013.

The Guardian reports that Ziad Akle (44), Unaoil’s territory manager for Iraq, Stephen Whiteley (64), who was a vice-president at SBM until 2009 before joining Unaoil as its manager for Iraq, and Paul Bond (67) SBM’s sales manager for the Middle East, have all pleaded not guilty.

The trial is expected to last three months.

(Sources: The Guardian, Bloomberg)

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Unaoil Directors Plead Guilty in US

Two brothers have pleaded guilty in the US to facilitating the payment of millions of dollars in bribes to officials in nine countries, including Iraq.

Cyrus Ahsani, 51, and Saman Ahsani, 46, both of United Kingdom (UK), ran the Monaco-based oil and gas consultancy Unaoil.

They are due to be sentenced on 20th April, 2020.

The following announcement was made by the US Department of Justice:

The U.S. Department of Justice said on Wednesday that Cyrus Ahsani, 51, and his 46-year-old brother Saman each pleaded guilty in March to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) on behalf of companies to secure oil and gas contracts.

They will be sentenced on April 20, 2020, the department said.

Steven Hunter, a 50-year-old British resident and former business development director, also pleaded guilty in August to one count of conspiracy to violate the FCPA.

The former CEO and chief operations officer (COO) of a Monaco-based intermediary company have pleaded guilty for their roles in a scheme to corruptly facilitate millions of dollars in bribe payments to officials in multiple countries. These included Algeria, Angola, Azerbaijan, the Democratic Republic of Congo, Iran, Iraq, Kazakhstan, Libya and Syria. The company’s former business development director also pleaded guilty for his role in paying bribes in Libya.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas, Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office, Inspector in Charge Adrian Gonzales of the U.S. Postal Inspection Service (USPIS) Houston Division and Special Agent in Charge D. Richard Goss of the IRS-Criminal Investigation’s (IRS-CI) Houston Field Office made the announcement.

Cyrus Ahsani, 51, and Saman Ahsani, 46, both of United Kingdom (UK), each pleaded guilty March 25 to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), for conspiring to facilitate bribes on behalf of companies in foreign countries in order to secure oil and gas contracts. UK resident Steven Hunter, 50, former business development director, pleaded guilty Aug. 2, 2018, to one count of conspiracy to violate the FCPA. Cyrus and Saman Ahsani are set for sentencing April 20, 2020, before U.S. District Judge Vanessa Gilmore of the Southern District of Texas. Hunter’s sentencing is scheduled for March 13, 2020, before U.S. District Judge David Hittner.

According to court documents, former U.S. resident and CEO Cyrus Ahsani and former COO Saman Ahsani managed a Monaco-based intermediary company that provided services for multinational companies operating in the energy sector. From approximately 1999 to 2016, the Ahsanis conspired with others, including multiple companies and individuals, to make millions of dollars in bribe payments to government officials in Algeria, Angola, Azerbaijan, the Democratic Republic of Congo, Iran, Iraq, Kazakhstan, Libya and Syria.

Additionally, court documents reflect Cyrus and Saman Ahsani laundered the proceeds of their bribery scheme in order to promote and conceal the schemes and to cause the destruction of evidence in order to obstruct investigations in the United States and elsewhere. Hunter participated in the conspiracy to violate the FCPA by, among other things, facilitating bribe payments to Libyan officials between about 2009 and 2015.

The FBI, IRS-Criminal Investigation and U.S. Postal Inspection Service conducted the investigation. Trial Attorneys Dennis R. Kihm, Gerald M. Moody Jr., Jonathan P. Robell and Gwendolyn A. Stamper of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Suzanne Elmilady of the Southern District of Texas are prosecuting the case. The Criminal Division’s Office of International Affairs also provided substantial assistance in this matter.

The governments of Australia, Canada, France, Guernsey, Italy, Monaco, the Netherlands, Portugal, Switzerland and UK provided significant assistance in this matter as did the U.S. Securities and Exchange Commission and Eurojust.

The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.

(Sources: US Dept of Justice, Reuters)