A Connecticut man has been convicted for his role in what was called a nearly eight-year long scheme to “bribe Brazilian government officials and to launder money” to secure business for two Connecticut-based commodities trading companies, according to federal authorities.
The jury in Bridgeport convicted Glenn Oztemel, 65, of Westport, on charges of conspiracy to violate the Foreign Corrupt Practices Act, conspiracy to commit money laundering, three counts of violating the FCPA, and two counts of money laundering, according to federal authorities.
Authorities, citing court documents and evidence presented at trial, said Oztemel paid bribes to officials of Petróleo Brasileiro S.A., the Brazilian state-owned oil and gas company, to obtain lucrative contracts for Arcadia Fuels Ltd. and Freepoint Commodities LLC.
CT man one of two indicted in alleged international bribery scheme in oil and gas industry
“Glenn Oztemel paid and laundered more than $1 million in bribes to employees of Brazil’s state-owned oil and gas company to obtain lucrative contracts for his commodities-trading companies in Connecticut,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, in a statement. “Bribing public officials to win business undermines the rule of law and creates unfair competition. Today’s verdict reaffirms the Criminal Division’s commitment to combatting foreign corruption that violates U.S. law.”
Vanessa Roberts Avery, U.S. Attorney for Connecticut, said, “bribery and money laundering are well-established federal crimes.
“This conviction serves as another warning to anyone involved in the financial industry who seeks to gain an unfair advantage and illegally profit, both here in the U.S. and abroad,” she said. “This office and our law enforcement partners will continue to keep a watchful eye to ensure that representatives from U.S. businesses operating overseas comply with our nation’s laws.”
Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office, said anyone who colludes to “thwart free market competition through bribery ultimately erode public trust in the marketplace.”
The “conviction demonstrates the commitment of the FBI and our partners to investigate anti-competitive behavior and hold accountable those who try to cheat the system for their own benefit and profit,” Davis said.
Authorities said the trial evidence showed that, between 2010 and 2018, Oztemel worked as a senior oil and gas trader — first at Arcadia and then at Freepoint, and “with the assistance of others, Oztemel paid and caused the payment of bribes to Petrobras officials for their assistance in helping Arcadia and Freepoint to obtain and retain fuel oil contracts with Petrobras and by providing Oztemel and others with confidential information regarding Petrobras’ fuel oil business.”
“Oztemel and his co-conspirators caused Arcadia and Freepoint to make corrupt payments — disguised as purported consulting fees and commissions —(allegedly) to a third party intermediary and agent, Eduardo Innecco, 74, knowing that Innecco would (allegedly) pay a portion of those funds to Brazilian officials, including to (a) Houston-based Petrobras trader,” federal authorities said in a statement.
Oztemel, Innecco, and their co-conspirators allegedly ‘used coded language like “breakfast’ and ‘freight deviation’ to refer to the bribes and communicated using personal email accounts, encrypted messaging applications, disposable phones, and fictitious names,” federal authorities said.
In total, Oztemel paid more than $1,000,000 in bribes, which were split between the Texas-based trader and other Petrobras officials in Brazil, federal authorities said.
Oztemel’s brother, Gary Oztemel. pleaded guilty to money laundering in June and Innecco was arrested in France in 2023 and his extradition to the United States is pending, federal authorities said.
Authorities said that Freepoint admitted in 2023 “to bribing officials in Brazil in violation of the anti-bribery provisions of the FCPA. Freepoint entered into a deferred prosecution agreement with the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the District of Connecticut. As a part of the resolution, Freepoint agreed to pay more than $98 million in criminal penalties and forfeiture.”
The FBI Los Angeles Field Office’s International Corruption Squad investigated the case, authorities said and the Justice Department’s Office of International Affairs and authorities in Brazil, Latvia, Switzerland, and Uruguay assisted.
