Connecticut Oil Trader Found Guilty of FCPA Violations
A former Connecticut oil trader was convicted Sept. 26 of paying more than $1 million in bribes to Brazilian officials to secure lucrative contracts for two U.S. energy corporations.
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Over nearly eight years, Glenn Oztemel “caused” his employers -- first Arcadia Fuels, then Freepoint Commodities -- “to make corrupt payments” to employees of Petroleo Brasileiro, Brazil’s state-owned oil and gas company, DOJ said. The payments were disguised as consulting fees and commissions, and Oztemel and his co-conspirators referred to them in private communications using codes such as “breakfast” and “freight deviation,” the government said.
It said the bribes would be made to “shell companies around the world,” then deposited in a Uruguayan bank account controlled by a Brazilian official’s father.
Oztemel was found guilty of conspiracy to violate the Foreign Corrupt Practices Act, three counts of violating the FCPA, conspiracy to commit money laundering, and two counts of money laundering. His three money laundering counts carry up to 20 years in prison each, while his FCPA counts carry up to five years each.
Oztemel’s brother, Gary Oztemel, was also charged. He pleaded guilty June 24 to money laundering. Another alleged co-conspirator, Eduardo Innecco, was arrested in France and faces extradition to the United States.
DOJ also noted that Freepoint admitted in December 2023 to violating the FCPA by bribing Brazilian officials. It agreed to pay more than $98 million in penalties to the U.S. government.