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Enforcement Action Dataset

 

Initiation Date:    04/15/2013  Information

Prosecuting Agency:    US Department of Justice

Name of Prosecuting Attorneys:   

  • Preet Bharara, United States Attorney
  • Jeffrey H. Knox, Chief, Fraud Section, Criminal Division
  • Elisha J. Kobre , Assistant United States Attorney
  • Tarek J. Helou, Trial Attorney, Fraud Section, Criminal Division
  • Richard C. Tarlowe, Chief, Complex Frauds and Cybercrime Unit
  • Patrick F. Stokes, Deputy Chief, Fraud Section, Criminal Division

Assisting Agencies:    Federal Bureau of Investigation , Department of Justice- Criminal Division’s Office of International Affairs , Department of Justice, Office of Enforcement Operations

Type of Action:    DOJ Criminal Proceeding

Docket or Case Number:    13-cr-00315

Court:    S.D. New York

Origin of the Proceeding:    Unknown

Whistleblower:    Unknown

Case Status:    Resolved


Summary  Information

In 2005, a foreign mining conglomerate (the "Mining Company") sought the help of the wife of a high-ranking Guinean government official to obtain rights to mine iron ore in the Simandou region of Guinea (the "Simandou Concession"). The Simandou Concession was held by another company, and its projected worth was billions of dollars. Between 2007 and 2010, the official's wife signed contracts with the Mining Company and related companies. In those contracts, the Mining Company and others promised to pay the official's wife, and she promised to help the Mining Company obtain the Simandou Concession. The contracts stipulated that $2 million was to be transferred to the official’s wife’s company and an additional sum was to be “distributed among persons of good will who may have contributed to facilitating the granting of” the valuable mining rights. The mining company and its affiliates also agreed to give 5 percent of its ownership of particular mining areas in Guinea to the official’s wife.

In 2012, the Guinean government initiated an investigation into the alleged bribery scheme involving the Simandou Concession. The FBI followed suit in January 2013, and by March 2013, the official's wife was working as a cooperating witness. Through March and April 2013, the official's wife had several telephone calls and in person meetings with Frederic Cilins, who had some unmentioned connection with the Mining Company. In these calls and meetings and in other meetings going back over a year, Cilins attempted to get the official's wife to destroy documents that appeared to connect him and his associates with the bribery scheme, and also sought to induce the official's wife to sign an affidavit containing numerous false statements regarding matters under investigation.

On April 25, 2013, the DOJ filed a five count Indictment in the Southern District of New York against Cilins alleging witness tampering, obstruction of a criminal investigation, and destruction of documents. A Superseding Indictment filed on February 18, 2014, added an additional count of conspiracy to obstruct justice. On March 10, 2014, Cilins entered into a Plea Agreement with the DOJ. Under the terms of the agreement, Cilins agreed to plead guilty to a one count criminal information for obstructing a criminal investigation (a Superseding Information was filed concurrently). On July 29, 2014, the court sentenced Cilins to 24 months in prison to be followed by 3 years of supervised release and ordered Cilins to pay a fine of $75,000 plus a mandatory assessment of $100. In a separate judgment, Cilins forfeited $20,000 already in FBI custody.

Country(ies) involved:    Guinea

Region(s) involved:    Africa

Total $ Sanctions Imposed by U.S. Government (FCPA-Related Charges Only):    $95,100

Sanction to Bribe Ratio:    $95,100 / $2,136,391 = 4.45 %

Sanction to Revenue Ratio:    Not Applicable

Sanction to Profit Ratio:    Not Applicable

FCPA Matter Name:   BSG Resources' Agent's Involvement in Guinea from 2005 to 2012 Information

Number of Related Enforcement Actions (Including This Enforcement Action):    1

Country(ies) involved:    Guinea

Region(s) involved:    Africa

Total $ Bribery Payments:    $2,136,391

Total $ Revenue Generated from Bribery:    Unknown

Total $ Profit Earned or Expenses Avoided from Bribery:    Unknown

Total $ Sanctions Imposed by U.S. Government (FCPA-Related Charges Only):    $95,100

Sanction to Bribe Ratio:    $95,100 / $2,136,391 = (4.45 %)

Sanction to Revenue Ratio:    Not Applicable

Sanction to Profit Ratio:    Not Applicable

Name:    Frederic Cilins

Employers & Positions:    BSG Resouces Ltd. - Agent

Country:    France

FCPA Claims:    None

Related Claims:    Witness Tampering (18 U.S.C. § 1512) ; Obstruction of a Criminal Investigation (18 U.S.C. § 1510) ; Destruction, Alteration, or Falsification of Records (18 U.S.C. § 1519) ; Conspiracy to Destroy, Falsify, or Alter Records (18 U.S.C. § 371; 18 U.S.C. § 1519)

Statutory Basis for FCPA Jurisdiction:    Not Applicable

Name:    BSG Resouces Ltd.

Entity Type:    Private Company

Place of Incorporation:    United Kingdom

HQ Country(ies):    United Kingdom

Industry:    Basic Materials

Period of Bribery:   2005 - 2012

Total Bribery Payments:    $2,136,391

Total Revenue Generated from Bribery:    Unknown

Total Profit Earned or Expenses Avoided from Bribery:    Unknown

Country(ies) involved:    Guinea

Region(s) involved:    Africa

Officials Potentially Influenced (Name; Title; Organization): 

  • Name Unknown, High-ranking official; Guinean government

Affiliates, Subsidiaries and Joint Ventures Involved in the Misconduct:    None/Unknown

Third-Party Intermediary:   

  • Frederic Cilins' Company , Shell Company

Type of Bribe:   Money

Cash, Wire or Check:    Cash (bills/coins/etc.), Wire Transfer

Purpose of Bribe:    Obtain/retain business

TRANSACTION OVERVIEW
Payments by Frederic Cilins

Period of Bribery:   2005 – 2012

Total Bribery Payments:    $150,000

Total Revenue Generated from Bribery:    Unknown

Total Profit Earned or Expenses Avoided from Bribery:    Unknown

Country(ies) involved:    Guinea

Region(s) involved:    Africa

Officials Potentially Influenced (Name; Title; Organization):  

  • Name Unknown, High-ranking official; Guinean government;

Affiliates, Subsidiaries and Joint Ventures Involved in the Misconduct:    None/Unknown

Third Party Intermediary:    None/Unknown

Type of Bribe:   Money

Cash, Wire or Check:    Unknown

Purpose of Bribe:    Obtain/retain business

TRANSACTION OVERVIEW
Payments by Frederic Cilins' Company

Period of Bribery:   2005 – 2012

Total Bribery Payments:    $2,086,391

Total Revenue Generated from Bribery:    Unknown

Total Profit Earned or Expenses Avoided from Bribery:    Unknown

Country(ies) involved:    Guinea

Region(s) involved:    Africa

Officials Potentially Influenced (Name; Title; Organization):  

  • Name Unknown, High-ranking official; Guinean government;

Affiliates, Subsidiaries and Joint Ventures Involved in the Misconduct:    None/Unknown

Third Party Intermediary:    Frederic Cilins' Company - Shell Company

Type of Bribe:   Money

Cash, Wire or Check:    Cash (bills/coins/etc.), Wire Transfer

Purpose of Bribe:    Obtain/retain business

Not Applicable

Mitigating Factors Referenced by the Government (Individual Defendants):

Defendant Cooperation
Frederic Cilins  

Aggravating Factors Referenced by the Government (Individual Defendants):

Defendant Insufficient Cooperation
Frederic Cilins

Total Global Monetary Sanctions (All Charges):    $95,100

Total Monetary Sanctions Imposed by U.S. Government (FCPA-Related Charges Only):    $95,100

Total Monetary Sanctions Owed to U.S. Government (FCPA-Related Charges Only):    $95,100

Case Status:    Resolved


Disposition:    Plea Agreement

Date of Disposition:    03/07/2014

Frederic Cilins

—  Total Monetary Sanctions Imposed by U.S. Government for Defendant (FCPA-Related Charges Only):    $95,100

—  Imprisonment/Incarceration:    24 months

—  Probation/Supervised Release:    36 months

—  House Arrest:    None

—  Community Service:    None

—  Admission of Guilt/Acceptance of Responsibility:    Yes

No Document Title Date Category