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Former Glencore Trader Pleads Guilty To FCPA And Related Offense

glencore

As highlighted in this prior post, for approximately two years Glencore (a commodities company incorporated in the United Kingdom and headquartered in Switzerland with common stock that trades on the New York based over-the-counter market) has been under scrutiny for conduct in Nigeria, the Democratic Republic of Congo, and Venezuela (as well as perhaps other countries).

Earlier this week Anthony Stimler pleaded guilty to FCPA and money laundering offenses. Stimler is described as a United Kingdom citizen and resident who was a trader at a Glencore subsidiary who worked on the West Africa desk from in or around 2002 until in or around 2009 and then again from in or around June 2011 until in or around August 2019. According to the DOJ “In that role, Stimler had responsibility for crude oil purchases from, among other places, Nigeria, and acted on behalf of Company 1 [Glencore] in procuring crude oil from Nigeria.”

In summary fashion, the criminal information alleges:

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Checking In On Glencore’s Scrutiny

glencore

In mid-2018 Glencore (a commodities company incorporated in the United Kingdom and headquartered in Switzerland with common stock that trades on the New York based over-the-counter market) disclosed that it was under scrutiny by the DOJ. (See here for the prior post).

Specifically, the company disclosed:

“Glencore Ltd, a subsidiary of Glencore plc, has received a subpoena dated 2 July, 2018 from the US Department of Justice to produce documents and other records with respect to compliance with the Foreign Corrupt Practices Act and United States money laundering statutes.  The requested documents relate to the Glencore Group’s business in Nigeria, the Democratic Republic of Congo and Venezuela from 2007 to present. Glencore is reviewing the subpoena and will provide further information in due course as appropriate.”

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Courts Dismisses Bribery Related Securities Fraud Action Against Glencore And Various Executives

Dismissed

In mid-2018 Glencore (a commodities company incorporated in the United Kingdom and headquartered in Switzerland with common stock that trades on the New York based over-the-counter market) disclosed that it was under scrutiny by the U.K. Serious Fraud Office and DOJ. (See here for the prior post).

Soon thereafter, the company’s share price fell and sure as the sun rises in the east and dogs bark, attorneys representing shareholders filed securities fraud claims against the company and certain executives.

One such action was filed in the U.S. District Court in New Jersey alleging that Glencore and certain executives made false and /or misleading statements and/or failed to disclose facts relating to bribery schemes Glencore allegedly engaged in in the Democratic Republic of Congo, Venezuela and Nigeria.

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Friday Roundup

Roundup

Scrutiny updates, more press, and for the reading stack. It’s all here in the Friday roundup.

Scrutiny Updates

Glencore

As highlighted in this prior post, in March the Commodity Futures Trading Commission issued an enforcement advisory concerning companies and individuals “that timely and voluntarily disclose to the Division violations of the Commodity Exchange Act involving foreign corrupt practices, where the voluntary disclosure is followed by full cooperation and appropriate remediation.”

Conventional wisdom was that this advisory just did not fall out of the sky, but was a reaction to something. In my own mind, that something was Glencore’s FCPA scrutiny which the company disclosed in July 2018 (see here).

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Friday Roundup

Roundup

About time, scrutiny updates, ripple, for the record, just saying, and for the reading and listening stack. It’s all here in the Friday roundup.

About Time

After dinging companies for nearly 40 years for internal controls and risk management failures, the SEC names its first chief risk officer.

As highlighted in this prior post, if the SEC were an issuer there would be many books and records and internal controls issues within the organization.

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