Ukrainian Billionaire Charged by U.S. With Bribe Scheme

[okaawhatever]

Source: Bloomberg

Dmitry Firtash, a Ukrainian businessman who amassed his fortune in Russia’s gas trade, was indicted on U.S. bribery charges tied to a $500 million Indian mining project in a case he says is politically motivated.

Firtash, 48, allegedly conspired with five other men and met with Indian government officials as part of an effort to pay $18.5 million in bribes to facilitate the project, aimed at generating titanium product sales to firms including an Illinois-based company that wasn’t identified in the indictment. “Firtash was the leader of the enterprise,” Chicago U.S. Attorney Zachary Fardon said today in a statement.

SNIP

One of the Group DF businesses, Vienna-based Ostchem Holding AG, entered into a 2007 agreement with a Chicago-based business identified in the indictment only as “Company A” to supply it with titanium. The go-between for that arrangement was another DF Group affiliate, the Swiss firm Bothli Trade AG, prosecutors said.

Boeing Co., the world’s biggest maker of satellites and aircraft, said in a statement last month that in 2006 it entered into a “memorandum of understanding” with Bothli to conduct a feasibility study on the potential for sourcing a product called “titanium sponge.”

SNIP

Boeing broke off talks with Bothli after more than a year of negotiations and refused to cooperate further, Gevorgyan said.
“Then we learned that the FBI in 2006 launched an investigation into the Indian deal,” he said. “For us, it was investment in the Indian economy and creating of important production willing to invest $1.5 billion, nothing else.”

Read more: http://www.bloomberg.com/news/2014-04-02/ukrainian-billionaire-charged-by-u-s-with-bribe-scheme.html

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Tried to get as much info as possible, but one should probably read the story for a fuller understanding. I want people to know why the US is involved, and that it was an investigation from long before the current political situation in Ukraine. I hope the citizens of Ukraine get some money out of this guy. This guy has seemingly been bilking the average Ukraine citizen for quite some time now.

[liberal N proud]

1. SCOTUS decision should change that

[Wellstone ruled]

2. You know damn well this guy

will get a free pass. With today's Supreme Court ruling,this turd will buy his way out. Thanks Roberts and I'am afraid this only the beginning of a free pass for anyone whom is willing to help some Politician.

[JohnnyRingo]

3. Finally!

The US justice system is taking positive action against a robber baron who has been skirting the law to swindle money from the unsuspecting public!!

...wait a minute.

The man charged is from another country, resides in a third, was dealing with US businessmen who are not involved with the indictment, and is completely untouchable by US law.

I guess it's business as usual. Carry on.

[okaawhatever]

4. The US Businessman was indicted with him. There were a total of 5 listed on the indictment. Also,

the indictment was handed down by grand jury (sealed) in June of 2013, so all of this pre-dates any issues in Ukraine.

From the DOJ Webiste:

The Justice Department has worked closely with and has received significant assistance from its law enforcement counterparts in Austria, as well as the Hungarian National Police, and greatly appreciates their assistance in this matter. Significant assistance was also provided by the Criminal Division’s Office of International Affairs.


As alleged in the indictment, the defendants used U.S. financial institutions to engage in the international transmission of millions of dollars for the purpose of bribing Indian public officials to obtain approval of the necessary licenses for the project. They allegedly financed the project and transferred and concealed bribe payments through Group DF, and used threats and intimidation to advance the interests of the enterprise’s illegal activities.

According to the indictment, Firtash was the leader of the enterprise and caused the participation of certain Group DF companies in the project. Firtash allegedly met with Indian government officials, including Chief Minister Reddy, to discuss the project and its progress, and authorized payment of at least $18.5 million in bribes to both state and central government officials in India to secure the approval of licenses for the project. Firtash also allegedly directed his subordinates to create documents to make it falsely appear that money transferred for the purpose of paying these bribes was transferred for legitimate commercial purposes, and he appointed various subordinates to oversee efforts to obtain the licenses through bribery.

http://www.justice.gov/opa/pr/2014/April/14-crm-333.html

[JohnnyRingo]

11. Well then...

As Emily used to say on Saturday Night Live:

Never mind.

[joshcryer]

6. FCPA

https://www.sec.gov/spotlight/fcpa/fcpa-cases.shtml

Basically doing business with the US is worth the fines paid, so they'll pay the fines, and go about their business.

You're right this guy won't go to jail, at most his bottom line will be hurt and he'll just rearrange the books so that those affected most would be the workers.

Ukraine might want to put him behind bars, though, as I'm sure he violated their laws. We'll see if he flees to Russia to avoid that possibility.

[davidpdx]

12. Russia seems the "in" place for those avoiding prosecution

[Kolesar]

13. Yeah, what is "Mr. too young to shave" up to now?

The sort-of employee of the NSA??

[Recursion]

5. An Indian Senator was indicted too

KVP Ramachandra Rao

http://in.reuters.com/article/2014/04/02/usa-justice-firtash-rao-idINDEEA310EB20140402

He's a pretty big name in Indian government and one of the architects of the plan to split Andra Pradesh (which many see as a cynical attempt by the Congress Party to gerrymander their parliamentary majority).

[joshcryer]

7. Firtash is hiding in Austria? Oh he's screwed.

He needs to get a plane trip to Russia as soon as possible.

[Recursion]

8. Heh. Also, the US gave Modi his visa and now a Cong head on a platter

Big week for him...

[amandabeech]

9. All five alleged crooks, including the American, were charged under RICO,

which was enacted to deal with criminal gangs. It is based on the theory that all members of a conspiracy are responsible for all actions of each member of the conspiracy, whether or not each individual knew of all acts of each of the others. RICO makes it easy for prosecutors to "turn" smaller fish under indictment, because even the smallest fish is responsible for the actions of ALL the big fish. The prosecutors undoubtedly have a lot of that information already, and they will get more.

The conspirators used US financial institutions and were involved with a US company. That's enough for jurisdiction here in the US, even though many of the activities were accomplished elsewhere.

Generally, the Europeans are cooperative in their extraditions to the US. I don't doubt that the extradition requests will be accompanied by offers of information that could lead to prosecutions in many countries.

The First Amendment decision today does not affect the areas of law involved in this case in any way. Undoubtedly, there will be challenges to these indictments, but RICO and the Foreign Corrupt Practices Act are well developed laws of long standing, and there is no obvious reason at this time that the Supreme Court will take any appeal from this case. The case is being tried by federal prosecutors in Chicago who understand RICO very well. I am sure that they are talented and that the case will be well prosecuted.

[Cha]

10. Thanks okaa

[Evasporque]

14. No, no, no....this is free speech now....nt