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Enforcement Action Dataset

 

Initiation Date:    11/27/2012  Information

Prosecuting Agency:    US Department of Justice

Name of Prosecuting Attorneys:   

  • David E. Novick , Assistant United States Attorney
  • Daniel S. Kahn , Trial Attorney, Fraud Section, Criminal Division
  • Denis J. McInerney, Chief, Fraud Section, Criminal Division
  • David B. Fein , United States Attorney

Assisting Agencies:    Federal Bureau of Investigation , Department of Justice- Criminal Division’s Office of International Affairs , Komisi Pemberantasan Korupsi (Corruption Eradication Commission)

Type of Action:    DOJ Criminal Proceeding

Docket or Case Number:    12-cr-00238

Court:    D. Connecticut

Origin of the Proceeding:    Unknown

Whistleblower:    Unknown

Case Status:    Ongoing


Summary  Information

Frederic Pierucci, held executive-level positions at Alstom Power, Inc. and other related entities. William Pomponi, was a vice president of regional sales at Alstom Power, Inc. Lawrence Hoskins was Senior Vice President for the Asia Region of Alstom Holdings, S.A. David Rothschild, was a vice president of regional sales at Alstom Power, Inc.

According to the charging documents in this case, from 2002 to 2009, Pierucci and Rothschild, together with others, paid bribes to officials in Indonesia, including a member of Indonesian Parliament and high-ranking members of Perusahaan Listrik Negara (PLN), the state-owned and state-controlled electricity company in Indonesia, in exchange for those officials’ assistance in securing a contract for the company to provide power-related services for the citizens of Indonesia, known as the Tarahan project. The Tarahan Project was valued at roughly $118 million. In order to conceal the bribes, the defendants retained two consultants purportedly to provide legitimate consulting services on behalf of the power company and its subsidiaries in connection with the Tarahan project. In reality, however, the primary purpose for hiring the consultants was allegedly to use the consultants to pay bribes to Indonesian officials.

On Novemeber 27, 2012, the DOJ filed an indictment against Frederic Pierucci, charging him with conspiracy to violate the anti-bribery provisions, violating the anti-bribery provisions, conspiracy to commit money laundering, and violating the money laundering provisions of the FCPA. On April 30, 2013, the DOJ filed a superseding indictment against Frederic Pierucci and William Pomponi, charging them with conspiracy to violate the anti-bribery provisions, violating the anti-bribery provisions, conspiracy to commit money laundering, and violating the money laundering provisions of the FCPA. On July 29, 2013, Frederic Pierucci pleaded guilty to one count of conspiracy to violate the anti-bribery provisions, and one count of violating the anti-bribery provisions of the FCPA. On October 6, 2017, the court entered judgment against Pierucci and sentenced him to 30 months in prison to be followed by one year of supervised release. The court also ordered Pierucci to pay a fine of $20,000 plus a mandatory special assessment of $200.

On July 30, 2013, the DOJ filed a second superseding indictment against William Pomponi and Lawrence Hoskins, charging them with conspiracy to violate the anti-bribery provisions, violating the anti-bribery provisions, conspiracy to commit money laundering, and violating the money laundering provisions of the FCPA. On July 17, 2014, William Pomponi plead guilty to one count of conspiracy to violate the FCPA. Pomponi died prior to sentencing, so on July 6, 2016, the DOJ moved to dismiss the case against him, which the court granted on July 19, 2016.

On April 15, 2015, the DOJ filed a third superseding indictment against Lawrence Hoskins, charging him with with conspiracy to violate the anti-bribery provisions, violating the anti-bribery provisions, conspiracy to commit money laundering, and violating the money laundering provisions of the FCPA. On June 4, 2015, Hoskins filed a motion to dismiss count one of the third superseding indictment (the conspiracy charge), which the court granted in part on August 13, 2015. The DOJ filed a motion to reconsider that ruling, and on March 16, 2016, the court denied that motion. On April 1, 2016, the DOJ filed a notice of appeal to the Second Circuit Court of Appeals. On August 24, 2018, the Second Circuit issued its opinion. The Second Circuit affirmed the lower court's ruling that Hoskins could not be liable for conspiring to violate the FCPA without showing that he was acting as an employee, officer, director, or agent of Alstom. The appeals court, however, reversed the lower court's ruling that prohibited the government from attempting to establish that Hoskins was liable as an agent of Alstom. The court held that if the government could show Hoskins was acting as an agent, he could be prosecuted under the FCPA. In light of this ruling, this case is still ongoing, and it appears that a trial is scheduled to begin on September 9, 2019.

In a related action, David Rothschild pleaded guilty to one count of conspiracy to violate the FCPA but also does not appear to have been sentenced yet.

Country(ies) involved:    Indonesia

Sanction to Bribe Ratio:    Not Applicable

Sanction to Revenue Ratio:    $20,300 / $118,000,000 = 0.02 %

Sanction to Profit Ratio:    Not Applicable

Number of Related Enforcement Actions (Including This Enforcement Action):    7

Country(ies) involved:    Bahamas, Egypt, Indonesia, Saudi Arabia, Taiwan

Total $ Bribery Payments:    $75,000,000

Total $ Revenue Generated from Bribery:    $4,000,000,000

Total $ Profit Earned or Expenses Avoided from Bribery:    $296,000,000

Total $ Monetary Sanctions (U.S. Sanctions Only):    $860,314,800

Sanction to Bribe Ratio:    $860,314,800 / $75,000,000 = (1147.09 %)

Sanction to Revenue Ratio:    $860,314,800 / $4,000,000,000 = (21.51 %)

Sanction to Profit Ratio:    $860,314,800 / $296,000,000 = (290.65 %)

Name:    Frederic Pierucci

Employers & Positions:    Alstom Power, Inc. - Executive

Country:    United States

FCPA Claims:    Anti-Bribery, Primary, Domestic Concern (15 U.S.C. § 78dd-2) ; Anti-Bribery, Conspiracy (18 U.S.C. 371)

Related Claims:    Conspiracy to Launder Money (18 U.S.C. §§ 1956, 1957) ; Money Laundering (18 U.S.C. § 1956)

Statutory Basis for FCPA Jurisdiction:    Domestic Concern (Employee) ; Domestic Concern (Agent) ; Domestic Concern ; Conspirator


Name:    William Pomponi

Employers & Positions:    Alstom Power, Inc. - Vice President of Sales

Country:    United States

FCPA Claims:    Anti-Bribery, Primary, Domestic Concern (15 U.S.C. § 78dd-2) ; Anti-Bribery, Conspiracy (18 U.S.C. 371)

Related Claims:    Conspiracy to Launder Money (18 U.S.C. §§ 1956, 1957) ; Money Laundering (18 U.S.C. § 1956)

Statutory Basis for FCPA Jurisdiction:    Domestic Concern ; Domestic Concern (Employee) ; Domestic Concern (Agent) ; Conspirator


Name:    Lawrence Hoskins

Employers & Positions:    Alstom Holdings, S.A. - Senior Vice President

Country:    United Kingdom

FCPA Claims:    Anti-Bribery, Primary, Domestic Concern (15 U.S.C. § 78dd-2) ; Anti-Bribery, Conspiracy (18 U.S.C. 371) ; Anti-Bribery, Aiding and Abetting/Causing (18 U.S.C. § 2, 15 U.S.C. §§ 78dd-1, 78dd-2, and/or 78dd-3)

Related Claims:    Conspiracy to Launder Money (18 U.S.C. §§ 1956, 1957) ; Money Laundering (18 U.S.C. § 1956)

Statutory Basis for FCPA Jurisdiction:    Domestic Concern (Agent) ; Domestic Concern (Employee) ; Domestic Concern ; Conspirator

Name:    Alstom Holdings, S.A.

Entity Type:    Subsidiary

Place of Incorporation:   

HQ Country(ies):    France

Industry:    Industrial Goods


Name:    Alstom Network Schweiz AG

Entity Type:    Subsidiary

Place of Incorporation:    Switzerland

HQ Country(ies):    Switzerland

Industry:    Utilities


Name:    Alstom Power, Inc.

Entity Type:    Subsidiary

Place of Incorporation:    United States

HQ Country(ies):    United States

Industry:    Utilities


Name:    Alstom S.A.

Entity Type:    Public Company

Place of Incorporation:    France

HQ Country(ies):    France

Industry:    Industrial Goods


Name:    PT Energy Systems Indonesia

Entity Type:    Subsidiary

Place of Incorporation:    Indonesia

HQ Country(ies):    Indonesia

Industry:    Utilities

Period of Bribery:   2005 - 2009

Total Bribery Payments:    Unknown

Total Revenue Generated from Bribery:    $118,000,000

Total Profit Earned or Expenses Avoided from Bribery:    Unknown

Country(ies) involved:    Indonesia

Officials Potentially Influenced (Name; Title; Organization): 

  • Official 1; Member of Parliament; Indonesian Parliament

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

Third-Party Intermediary:   

  • Consultant A , Agent/Consultant/Broker

Type of Bribe:   Money

Cash, Wire or Check:    Wire Transfer

Purpose of Bribe:    Obtain/retain business

TRANSACTION OVERVIEW
Improper payments made to consultants for the purpose of paying bribes to Indonesian officials

Period of Bribery:   2005 – 2009

Total Bribery Payments:    $1,026,880

Total Revenue Generated from Bribery:    $118,000,000

Total Profit Earned or Expenses Avoided from Bribery:    Unknown

Country(ies) involved:    Indonesia

Officials Potentially Influenced (Name; Title; Organization):  

  • Official 1; Member of Parliament; Indonesian Parliament;

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

Third Party Intermediary:    Consultant A - Agent/Consultant/Broker

Type of Bribe:   Money

Cash, Wire or Check:    Wire Transfer

Purpose of Bribe:    Obtain/retain business

Not Applicable

Mitigating Factors Referenced by the Government (Individual Defendants):

Defendant Cooperation
Frederic Pierucci  
Lawrence Hoskins  
William Pomponi  

Aggravating Factors Referenced by the Government (Individual Defendants):

Defendant Insufficient Cooperation
Frederic Pierucci  
Lawrence Hoskins  
William Pomponi  

Total Monetary Sanctions for the Action:    $20,300

Case Status:    Ongoing


Disposition:    Plea Agreement

Date of Disposition:    07/29/2013

Frederic Pierucci

—  Total Monetary Sanctions for Defendant:    $20,200

—  Imprisonment/Incarceration:    30 months

—  Probation/Supervised Release:    12 months

—  House Arrest:    None

—  Community Service:    None

—  Admission of Guilt/Acceptance of Responsibility:    Yes


Disposition:    Dismissal (Post Plea)

Date of Disposition:    07/19/2016

William Pomponi

—  Total Monetary Sanctions for Defendant:    $100

—  Imprisonment/Incarceration:    None

—  Probation/Supervised Release:    None

—  House Arrest:    None

—  Community Service:    None


Disposition:    Undetermined

Date of Disposition:    Undetermined

Lawrence Hoskins

—  Total Monetary Sanctions for Defendant:    $0

—  Imprisonment/Incarceration:    None

—  Probation/Supervised Release:    None

—  House Arrest:    None

—  Community Service:    None

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