The summer of 2017 saw the U.S. Department of Justice’s docket still teeming with Foreign Corrupt Practices Act (FCPA) cases. In this post, we draw a few lessons from three of them, which bring together three threads that seem often to weave together: bribery, kleptocracy, and money laundering.
Continue Reading News Flash: Kleptocrats Still Taking Bribe Money With One Hand and Laundering it With the Other
Kleptocracy
New Year, New Orleans, Old Tricks
The Department of Justice’s Kleptocracy Initiative is kicking off 2015 strong. On January 13, 2015, the DOJ filed a civil complaint seeking the forfeiture of nine properties in New Orleans, worth close to $1.53 million. The property was allegedly purchased with corrupt proceeds, traced to $2 million in bribes paid to a former Honduran official.
Continue Reading New Year, New Orleans, Old Tricks
Take the Mansion, But Leave the Thriller Jacket: DOJ Settles with Equatorial Guinea Veep for $30 Million in Assets Bought With Corrupt Proceeds
On October 10, 2014, the U.S. Department of Justice announced a civil settlement with Teodoro (“Teddy”) Nguema Obiang, Vice President of Equatorial Guinea and eldest son of the country’s current President, under the DOJ’s Kleptocracy Asset Recovery Initiative. Through a combination of forfeiture and divestment, Obiang agreed to turn over $30 million in U.S.-based assets purchased in a “corruption-fueled spending spree,” according to the DOJ. Those assets include a Malibu mansion, Ferrari, and $1 million for life-size Michael Jackson statues Obiang had expatriated from the United States to Equatorial Guinea. He gets to keep a Gulfstream jet and most of his other Michael Jackson paraphernalia, however, including the red leather jacket MJ wore in “Thriller” and the white crystal-covered glove from the king of pop’s “Bad” tour. The settlement dollar-value represents less than half of what the DOJ sought; Obiang managed to send a bulk of his U.S.-based assets outside the United States, including several luxury cars. But the case still represents significant progress in the U.S. government’s anti-corruption efforts, particularly because this action was brought against an official still in power, and most of the settlement amount will be used for the benefit of the people of Equatorial Guinea.Continue Reading Take the Mansion, But Leave the Thriller Jacket: DOJ Settles with Equatorial Guinea Veep for $30 Million in Assets Bought With Corrupt Proceeds
Beach Houses and Bribes: DOJ Seeks Over $700,000 From Former South Korean President
April 24 marked another day of progress in holding kleptocrats accountable for their corruption.
On that day, the U.S. Department of Justice (“DOJ”) filed a civil forfeiture complaint to seize more than $700,000 in allegedly illicit funds from former South Korean President Chun Doo-hwan. The corrupt proceeds came from the sale of a Newport Beach house, purchased in 2005 by Chun’s son, Chun Jae Yong, who used funds that the former President had wrongfully obtained. According to the DOJ, the United States is collaborating in this matter with the Republic of Korea’s Supreme Prosecutor’s Office, Korea’s Ministry of Justice, and the Seoul Central District Prosecutor’s Office.Continue Reading Beach Houses and Bribes: DOJ Seeks Over $700,000 From Former South Korean President
It Doesn’t Pay to Steal: In Largest Ever Kleptocracy Forfeiture Action, DOJ Seizes $458 Million
On March 5, 2014, the U.S. Department of Justice announced that it had frozen over $458 million of ill-gotten assets that former Nigerian dictator Sani Abacha and his co-conspirators had stashed in bank accounts across the globe. The DOJ is seeking to recover almost $100 million more. The largest-ever kleptocracy forfeiture action brought in the United States, this case is a victory for the Kleptocracy Asset Recovery Initiative, a program launched by the DOJ Criminal Division’s Asset Forfeiture and Money Laundering Section in 2010. We wrote about the Initiative’s first-ever action here, brought in 2012, when the DOJ executed a forfeiture order of just over $400,000 against a former Nigerian governor. And while the DOJ has seen great success in its actions against bribe-payers through the enforcement of the Foreign Corrupt Practices Act, initiatives to bring bribe-takers to justice have faced bumps in the road, probably because of the politically fraught and complex nature of such cases.
Continue Reading It Doesn’t Pay to Steal: In Largest Ever Kleptocracy Forfeiture Action, DOJ Seizes $458 Million