Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Ex-Vitol Oil Trader Indicted in U.S. Probe of Bribes in Ecuador

Published 09/22/2020, 09:27 PM
Updated 09/22/2020, 09:36 PM
© Bloomberg. Stacks of U.S. $100 bills are arranged for a photograph in New York, U.S., on Thursday, Feb. 7, 2013.

© Bloomberg. Stacks of U.S. $100 bills are arranged for a photograph in New York, U.S., on Thursday, Feb. 7, 2013.

(Bloomberg) -- A former manager at Vitol Group, the world’s largest oil-trading firm, was indicted for allegedly bribing Ecuadorian government officials to get business for his firm with state-owned Petroecuador.

The case, part of a broad U.S. probe into bribes paid to South American officials, is the latest to sweep up the Swiss oil-trading giant. Last year, a former Petroleo Brasileiro SA oil trader who went by the code name “Phil Collins” told a Brazilian judge he received bribes from Vitol to favor the firm in contracts.

U.S. prosecutors allege that Javier Aguilar of Houston, who was previously charged in a sealed criminal complaint and arrested, made $870,000 in illicit payments to Ecuadoran officials so they would help him obtain a $300 million fuel-oil contract with Petroecuador.

While the indictment doesn’t name Vitol, the firm is Aguilar’s former employer, according to a person with knowledge of the matter who asked not to be identified because it’s private. An email to Vitol for comment wasn’t immediately returned. Aguilar couldn’t be reached for comment nor could his lawyer.

Vitol has denied the allegations of bribery in Brazil and has said it has a “zero tolerance” policy regarding bribery and corruption, and that it was cooperating with authorities, including the U.S. Justice Department.

Aguilar was initially charged on a sealed criminal complaint filed on July 10. He made an initial appearance on July 23 and was freed on $100,000 bail. In an indictment unsealed Tuesday brought by federal prosecutors in Brooklyn, he was charged with conspiracy to bribe foreign officials and a count of money laundering. He’s scheduled to appear at a later date in federal court in Brooklyn.

Separately, a Florida asphalt company called Sargeant Marine Inc. pleaded guilty to conspiring to bribe officials of Venezuela’s state-owned oil company and those of two other South American countries, agreeing to pay $16.6 million to end a wide-ranging U.S. investigation. Charged with violating the Foreign Corrupt Practices Act, the company was “part of a scheme and conspiracy to pay bribes on behalf of the company in multiple countries, in Brazil, Venezuela and Ecuador, in order to win valuable business contracts,” the government told a federal judge in New York at a virtual hearing on Tuesday.

Asphalt, also known as bitumen, is a sticky form of petroleum found abundantly in Venezuela and in high demand in China.

Also See: Traders Suspect Venezuela Oil in China as Bitumen Flows Soar

In the case involving Boca Raton-based Sargeant Marine, employees engaged in the bribery plot between 2010 and 2018, prosecutor Derek Ettinger said. They bribed Brazilian officials, as well as officials of Petroleos de Venezuela SA, and paid off a senior official of Petroecuador to win a 2014 contract. As a result of the scheme, Sargeant Marine earned about $26.5 million, the government said.

U.S. District Judge Eric Vitaliano in Brooklyn accepted the terms of the plea agreement and sentenced the company immediately.

Prosecutors also disclosed several guilty pleas that had been under seal, including by Daniel Sargeant, described in court papers as “an executive and one of the chief decision-makers” of the company between 2012 and 2016.

©2020 Bloomberg L.P.

© Bloomberg. Stacks of U.S. $100 bills are arranged for a photograph in New York, U.S., on Thursday, Feb. 7, 2013.

Latest comments

put all those thieves in jail
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.