Officials of the United
States Department of Justice (DoJ) yesterday announced that they were
filing a civil complaint seeking the forfeiture and recovery of
approximately $144 million in assets that were allegedly the proceeds of
foreign corruption offenses and were laundered in and through the U.S.
The announcement was jointly made by acting Assistant Attorney
General Kenneth A. Blanco, Assistant Director Andrew W. Vale, who heads
the Washington Field Office of the Federal Bureau of Intelligence (FBI),
Assistant Director Stephen E. Richardson of the FBI’s Criminal
Investigative Division, and Don Fort of the IRS Criminal Investigation
(IRS-CI).
Details of the legal complaint assert that, from 2011 to 2015,
Nigerian businessmen, Kolawole Akanni Aluko and Olajide Omokore,
conspired with others to pay bribes to Nigeria’s former Minister for
Petroleum Resources, Diezani Alison-Madueke, who oversaw Nigeria’s
state-owned oil company. According to US authorities, in return for the
improper benefits, Ms. Alison-Madueke used her influence to steer
lucrative oil contracts to briefcase companies owned by Mr. Aluko and
Mr. Omokore. The complaint alleges that the proceeds of those illicitly
awarded contracts were then laundered in and through the U.S. and used
to purchase various assets subject to seizure and forfeiture. The assets
in questions include a $50 million condominium located in one of
Manhattan’s most expensive buildings—157 W. 57th Street—as well as a
yacht, the Galactica Star, valued at $80 million.
“The United
States is not a safe haven for the proceeds of corruption,” said acting
Assistant Attorney General Blanco. He added: “The complaint announced
today demonstrates the Department’s commitment to working with our law
enforcement partners around the globe to trace
and recover the
proceeds of corruption, no matter the source. Corrupt foreign officials
and business executives should make no mistake: if illicit funds are
within the reach of the United States, we will seek to forfeit them and
to return them to the victims from whom they were stolen.”
In his remarks, Assistant Director Vale stated, “Business executives
who engage in bribery and illegal pay-offs in order to obtain contracts
create an uneven marketplace where honest competitor companies are put
at a disadvantage.”
The DoJ officials further stated, “Along with the Department of
Justice, international law enforcement partners and other U.S. federal
agencies, the FBI is committed to pursuing all those who attempt to
advance their businesses through corrupt practices.”
Assistant Director Richardson stated that yesterday’s announcement
“would not have been possible without the remarkable work conducted by a
group of dedicated investigators, attorneys and international partners
who were committed to leaving no stone unturned in this case targeting
international corruption. This case demonstrates that the FBI will not
tolerate American institutions and property being used to launder
proceeds of foreign corruption and today’s filing is an important step
towards recovering identified funds. This should serve as a warning to
other corrupt foreign officials that the United States is not open for
their business.”
According to Mr. Fort, the DoJ’s actions “are
the direct result of our agents following the money and unmasking
corruption and greed.” He vowed that, “Working with our law enforcement
partners, IRS-CI will continue to investigate and unravel these complex
financial transactions.”
The government alleges that Aluko,
Omokore and others funded a lavish lifestyle for former Oil Minister
Alison-Madueke, who remains in the UK ostensibly for cancer treatment.
US officials allege that the Nigerian-born businessmen conspired to
purchase millions of dollars in real estate in and around London for
Alison-Madueke and her family members, and then renovated and furnished
these homes with millions of dollars in furniture, artwork and other
luxury items purchased at two Houston-area furniture stores at the
former minister’s direction.
According to the US government allegations, Ms. Alison-Madueke then
used her influence to direct a subsidiary of the Nigerian National
Petroleum Corporation (NNPC) to award Strategic Alliance Agreements
(SAAs) to two shell companies created by Aluko and Omokore, Atlantic
Energy Drilling Concepts Nigeria Ltd. and Atlantic Energy Brass
Development Ltd. (the Atlantic Companies) respectively.
Under the SAAs, the Atlantic Companies were required to finance the
exploration and production operations of eight on-shore oil and gas
blocks. In return for financing these operations, the companies expected
to receive a portion of the oil and gas produced. However, according to
the complaint, the Atlantic Companies provided only a fraction of the
agreed upon financing or, in some instances, failed entirely to provide
it. The companies also failed to meet other obligations under the SAAs,
including the payment of $120 million entry fee.
Nevertheless, according to the allegations, the companies
were permitted to lift and sell more than $1.5 billion worth of
Nigerian crude oil. The Department of Justice contends that the Atlantic
Companies then used a series of shell companies and intermediaries to
launder a portion of the total proceeds of these arrangements into and
through the U.S.
A civil forfeiture complaint is merely an
allegation that money or property was involved in or represents the
proceeds of a crime. These allegations are not proven until a court
awards judgment in favor of the U.S.
The FBI’s International
Corruption Squads in two cities, Washington, D.C. and Los Angeles, as
well as the IRS-CI are investigating the case. Trial attorneys Stephen
A. Gibbons and Michael W. Khoo of the Criminal Division’s Money
Laundering and Asset Recovery Section have been named to prosecute the
case. The Criminal Division’s Office of International Affairs is
providing substantial assistance.
This case was brought under the Kleptocracy Asset Recovery Initiative.
This
initiative is led by a team of dedicated prosecutors in the Criminal
Division’s Money Laundering and Asset Recovery Section, in partnership
with federal law enforcement agencies, and often with U.S. Attorney’s
Offices, to obtain forfeiture of the proceeds of foreign official
corruption
and, where appropriate, to use those recovered assets to benefit the
people harmed by these acts of corruption and abuse of office.
In
2015, the FBI formed International Corruption Squads across the country
to address national and international implications of
foreign corruption. Individuals with information about possible proceeds
of foreign corruption located in or laundered through the U.S. should
contact federal law enforcement or send an email to
kleptocracy@usdoj.gov (link sends e-mail) or https://tips.fbi.gov/.