This prior post discussed the many FCPA (and related) enforcement actions concerning Ecuador’s Seguros Sucre S.A. (“Seguros Sucre”), an alleged state-owned insurance company and “instrumentality” of the Ecuadorian government.
Among the enforcement actions were criminal charges announced by the DOJ in 2022 against Esteban Eduardo Merlo Hidalgo, Christian Patricio Pintado Garcia, and Luis Lenin Maldonado Matute.
Merlo was described as an Ecuadorian and U.S. dual citizen residing in Miami who operated and controlled Intermediary Company (a term that collectively refers to two companies that were registered in Panama and Ecuador, operated in Miami, Florida, and acted as intermediaries for reinsurance companies). Merlo was described as a “domestic concern” in FCPA speak.
Maldonado was described as an Ecuadorian citizen and Costa Rica resident and the President of Intermediary Company. Maldonado was described as an agent of a “domestic concern” in FCPA speak.
Pintado was described as an Ecuadorian and Italian dual citizen and resident of Costa Rica and the General Manager of Intermediary Company. Pintado was described as an agent of a “domestic concern” in FCPA speak.
In summary fashion, the indictment alleged that the defendants and others conspired to “unlawfully enrich themselves by bribing Ecuadorian officials to obtain and retain business from Ecuadorian entities and instrumentalities controlled by the Ecuadorian government for themselves and others.”
According to the indictment, bribes were paid, directly or indirectly, “to a for the benefit of foreign officials in Ecuador, including Ribas (described as a citizen of Ecuador who served as the Chairman of Seguros Sucre and Rocafuerte [another alleged state-owned insurance company in Ecaudor] as well as an advisor to a then high ranking executive branch official in the Ecuadorian government), Foreign Official 1 (a citizen of Ecuador who served as an official of Seguros Sucre), Foreign Official 2 (a citizen of Ecuador who served as an official of Seguros Sucre), and Foreign Official 3 (an individual who served as an official of Seguros Sucre), to secure their assistance in awarding business to Intermediary Company, Reinsurance Broker 1 (a company based in the United Kingdom), and Reinsurance Broker 2 (a company based in the United Kingdom).”
According to the indictment, the defendants used Intermediary Company, and bank accounts controlled by the defendants and others in the U.S., Switzerland, Panama, and elsewhere to “promote the illegal bribery scheme and to conceal the nature and purpose of the illegal bribery scheme” by, among other things, using false contracts that described services that were not provided.
The indictment charged conspiracy to violate the FCPA’s anti-bribery provisions, a substantive violation of the FCPA’s anti-bribery provisions, conspiracy to commit money laundering, and four counts of engaging in transactions in criminally derived property.
Earlier this week, Christian Patricio Pintado Garcia pleaded guilty to conspiracy to commit money laundering.
The factual proffer in support of the plea agreement states:
“Seguros Sucre S.A. (“Seguros Sucre”) and Seguros Rocafuerte S.A. (“Seguros Rocafuerte”) were state-owned and state-controlled insurance companies in Ecaudor which performed government functions for and on behalf of Ecuador and were therefore “instrumentalities” of the Ecuadorian government and their employees were “foreign officials.”
The defendant was an Ecuadorian and Italian dual citizen who resided in Costa Rica during the relevant time period and acted as general manager of two companies registered in Panama and Ecuador, operated in Miami, Florida, and which acted as intermediaries for reinsurance companies (collectively Intermediary Company”). Intermediary Company helped companies including two U.K. based reinsurance brokers H.W. Wood Limited and Tysers Insurance Brokers Limited obtain and retain reinsurance business with Seguros Sucre and Seguros Rocafuerte in exchange for receiving a commission.
Between in and around 2013 and in or around 2018, the defendant and others, including Esteban Eduardo Merlo Hidalgo and Luis Lenin Maldonado Matute, knowingly engaged in a conspiracy to conduct monetary transactions by, through, or to financial institutions, affecting interstate commerce in criminally derived property of a value greater than $10,000 that was derived from specified unlawful activity ([including a felony violation of the FCPA]). The defendant knew that this conduct was unlawful.”
See here and here for previous posts regarding the prior 2023 FCPA enforcement actions against H.W. Wood Limited and Tysers.
