DOJ Charges Individual In Connection With Alleged PEMEX Bribery Scheme
Earlier this week in the S.D. of Texas, this DOJ filed a criminal information against Alfonso Wilson alleging that he and others obtained and retained a December 2021 Contract with PEMEX for an Equipment Company through corrupt and fraudulent means, including by offering and paying bribes to a Foreign Official.
Wilson is described was a dual citizen of the United States and Mexico and a resident who owned and controlled an Intermediary Company and who had responsibilities for liaising with Foreign Official as an agent of Equipment Company in connection with obtaining the December 2021 Contract for Equipment Company.
According to this LinkedIn profile, Al Wilson is the Chief Executive Officer at Oil Technologies Consortium. Wilson’s LinkedIn profile indicates that between 1994 and 2006 he worked at PEMEX.
The Equipment Company (described as a company based in Texas) is believed to be Drillmec.
The Foreign Official is described as a senior executive at PEMEX Exploración y Producción (“PEP” – a wholly owned exploration and production subsidiary of PEMEX) between 2018 and 2021.
Potpourri
Calavo Growers
As highlighted in this prior post, in early 2024 Calavo Growers, Inc. “a global leader in quality produce, including avocados, tomatoes and papayas, and a pioneer of healthy fresh-cut fruit, vegetables and prepared foods” disclosed:
“On January 16, 2024, the Company announced that its internal audit process had identified to the Audit Committee of the Board of Directors certain matters that the Board of Directors determined after fiscal year end merited enhanced evaluation. A Special Committee of the Board of Directors (the “Special Committee”) was established to commence an investigation, with the assistance of external legal counsel and external forensic accountants. The Special Committee determined that certain of those matters related to the Company’s operations in Mexico raised potential issues under the Foreign Corrupt Practices Act (“FCPA”). The Company voluntarily disclosed this ongoing investigation to the SEC and the DOJ, and the Company intends to fully cooperate with the SEC and the DOJ in connection with these matters.”
DOJ Alleges Mexican Bribery Scheme Involving PEMEX
Earlier this week the DOJ announced a Foreign Corrupt Practices Act enforcement action concerning an alleged bribery scheme in Mexico.
The indictment charges Ramon Alexandro Rovirosa Martinez (a citizen of Mexico and a lawful permanent resident of Texas) and Mario Alberto Avila Lizarraga (a citizen of Mexico and lawful permanent resident of Texas) for their roles in an alleged bribery scheme to retain and obtain business related to Petróleos Mexicanos (PEMEX), the state-owned oil company of Mexico, and PEMEX Exploración y Producción (PEP), PEMEX’s wholly owned exploration and production subsidiary.
Rovirosa and Avila are associated with various Mexican companies that operated in the oil and gas industry. (See here).
Next Up … Trafigura
First it was Sargeant Marine in 2020 (see here for the prior post).
Then it was Vitol in 2020 (see here for the prior post).
Then it was Glencore in 2022 (see here for the prior post).
Then it was Freepoint Commodities in 2023 (see here for the prior post).
Then it was Gunvor in 2024 (see here for the prior post).
Next up in the list of commodities trading (or related) companies to resolve an FCPA enforcement action is Trafigura (a company which has been under FCPA and related scrutiny for years). After accounting for various credits for related foreign law enforcement actions, the net FCPA settlement amount is approximately $100.2 million (a criminal fine amount of $53.66 million and a forfeiture amount of $46.51 million).
Gunvor Resolves Net $474.4 Million FCPA Enforcement Action
In 2021, Raymond Kohut (a Canadian citizen who lived in the Bahamas and worked in business development for Gunvor Group Ltd., a Switzerland based commodities firm) pleaded guilty in connection with an Ecuador bribery scheme. (See here for the prior post).
Last week, the DOJ returned to the same core conduct in announcing a Foreign Corrupt Practices Act enforcement action against Gunvor.
The net FCPA settlement amount was $474.4 million (a $187.3 million criminal fine and a $287.1 million forfeiture amount).