As detailed below, in the past approximate five years, there have been several FCPA enforcement actions against companies and individuals involved in the insurance sector in Ecuador.
Tysers Insurance Brokers Limited and H.W. Wood Limited (2023)
As highlighted in this prior post, the DOJ alleged that “Tysers and H.W. Wood were engaged in a conspiracy the purpose of which was for the co-conspirators to enrich themselves by, among other things, corruptly offering bribes to, and for the benefit of Juan Ribas Domenech, Foreign Official 1, Foreign Official 2, and Foreign Official 3, each of whom was a foreign official in Ecuador, within the meaning of the FCPA … to influence the foreign officials and to secure improper advantages in order to obtain or retain reinsurance business from Seguros Sucre and Rocafuerte” (both alleged to be state-owned insurance companies).
Jardine Lloyd Thompson Group Holdings Ltd. (2022)
As highlighted in this prior post, the DOJ’s so-called “declination with disgorgement letter” stated:
“The Department’s investigation found evidence that beginning in 2014 and continuing through 2016, JLT, through its employee and agents, paid approximately $10,800,000 to a Florida-based third-party intermediary that the employee and agents knew would be used, in part, to pay approximately $3,157,000 in bribes to Ecuadorian government officials in order to obtain and retain contracts with Seguros Sucre, the Ecuadorian state-owned and -controlled surety company. Approximately $1.2 million of these bribe payments were laundered through and into bank accounts in the United States.”
Esteban Eduardo Merlo Hidalgo, Christian Patricio Pintado Garcia, and Luis Lenin Maldonado Matute (2022)
Merlo is 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 is described as a “domestic concern” in FCPA speak. Maldonado is described as an Ecuadorian citizen and Costa Rica resident and the President of Intermediary Company. Maldonado is described as an agent of a “domestic concern” in FCPA speak. Pintado is described as an Ecuadorian and Italian dual citizen and resident of Costa Rica and the General Manager of Intermediary Company. Pintado is described as an agent of a “domestic concern” in FCPA speak. In summary fashion, the indictment alleges 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.” (See here for the prior post).
Juan Ribas Domenech, Jose Vicente Gomez Aviles, Felipe Moncaleano Botero (2020)
The individuals were charged with money laundering conspiracy in connection with bribery schemes. (See here for the prior post). Ribas served as the Chairman of Seguros Sucre and as an advisor to the President of Ecuador. Gomez was an owner of a Panama registered company that operated as a reinsurance broker. Moncaleano was an executive and shareholder of the Colombian-based subsidiaries of a U.K. reinsurance broker and risk advisor. The DOJ also charged Roberto Heinert with money laundering conspiracy. Heinert was also an owner of the Panama registered company that operated as a reinsurance broker.
Earlier this week, the U.K. Serious Fraud Office announced:
“Representatives of United Insurance Brokers Limited (UIBL) were ordered to appear before Westminster Magistrates’ Court next month. The company is charged with failing to prevent associates from bribing state officials in Ecuador between October 2013 and March 2016. The SFO alleges UIBL’s US-based intermediaries for Ecuador paid bribes in return for the awarding of re-insurance contracts worth US$38 million. If this case proceeds to a contested trial, it will be the first time that an SFO “failure to prevent bribery” case is heard by a jury. UIBL offered re-insurance services which insure against any losses caused by making significant and unexpected payouts for insurance policies. This was sold to state insurers covering parts of the Ecuadorian public sector, including the state water and electricity companies. UIBL received a US$6.2 million commission to provide these services, of which US$3 million was allegedly paid to intermediaries. They are accused of subsequently paying bribes to an Ecuadorian official in exchange for the contract.”
In the release, Nick Ephgrave (Director of the Serious Fraud Office):
“The SFO remains committed to stamping out international bribery wherever it may occur. British companies have a duty to prevent the harm caused by bribery when doing business at home and abroad, to ensure that the UK remains a safe and fair place to do business.”
