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Energy trader Gunvor to pay $662 mln to end United States, Swiss bribery cases

Gunvor, among the world's largest oil traders, settled on Friday to pay about $ 662 million to deal with U.S. and Swiss investigations into a. plan to pay allurements to Ecuadorean officials to win business.

Gunvor pleaded guilty to conspiring to violate a U.S. bribery law at a hearing in federal court in Brooklyn, New York City,. marking completion of a long-running criminal probe.

The Geneva-based company likewise resolved a related investigation. by the Office of the Attorney General Of The United States of Switzerland.

Jean-Baptiste Leclercq, Gunvor's basic counsel, informed U.S. District Judge Eric Vitaliano that the trader signed up with a. conspiracy that contravened of the Foreign Corrupt Practices Act. ( FCPA) by paying intermediaries to win organization with Ecuador's. nationwide oil company Petroecuador.

The payment includes a $374.6 million criminal fine and a. forfeit of $287.1 million. Gunvor will be credited for as much as. $ 93 million in payments to both Switzerland and Ecuador.

In a statement, Chairman Torbjörn Törnqvist said Gunvor was. sorry for previous mistakes and committed to improving its now. industry-leading compliance program. The deal does not need. Gunvor to employ a screen.

The U.S. Department of Justice and the U.S. Commodity. Futures Trading Commission had actually been penetrating Gunvor because at. least 2020, and a former staff member in 2021 pleaded guilty over a. scheme to pay off Ecuadorean government officials to win service.

reported in December that Gunvor had set aside $650. million to solve the probe.

Authorities said that between 2012 and 2020, Gunvor and. other conspirators paid more than $97 million to intermediaries,. knowing a few of the cash would be used to pay off authorities in. Ecuador.

In exchange, high-level Ecuadorean authorities helped front. business for Gunvor win rights to a series of oil-back loan. agreements with Petroecuador, authorities stated.

One Gunvor worker directed an intermediary to bestow an. 18-karat gold Patek Philippe watch on a Petroecuador official,. the Justice Department said.

Switzerland's Attorney General likewise found Gunvor criminally. accountable for corruption in 2019, when it was purchased to pay $95. million for bribing authorities in Congo Republic and the Ivory. Coast.

That case was the very first where a major trading company had actually been. found guilty on such charges in Switzerland.

U.S. prosecutors have made a multi-year push to root out. fraud and misconduct in the products sector.

Traders who buy and sell basic materials typically operate in. jurisdictions where corruption is common, putting them at threat. of violating the FCPA, which restricts paying bribes to foreign. authorities.

Glencore consented to pay more than $1 billion in. connection with a decade-long bribery scheme covering several. nations.

And in December, Connecticut-based commodities trader. Freepoint Commodities reached a $98 million settlement of. bribery and other U.S. charges.

Vitol, the world's largest oil trader, dealt with U.S. and. Brazilian probes in December 2020 by agreeing to pay $164. million and admitting to bribing officials in Brazil, Mexico and. Ecuador. One of its employees, Javier Aguilar, was founded guilty. last month of paying off Ecuadorean officials.

(source: Reuters)