Joseph Sigelman ("Sigelman") was one of two chief executive officers of PetroTiger, Ltd. ("PetroTiger"), a British Virgin Islands oil and gas company with operations in Colombia and offices in New Jersey.
Beginning in or around 2009, Sigelman and others, including PetroTiger executives Knut Hammarskjold and Gregory Weisman, sought to acquire a company (the "Target Company") from its three owners. They obtained funds for the acquisition primarily from two investing partners (the "Investing Partners"). Sigelman was responsible for negotiating the terms of the acquisition of the Target Company on behalf of the Investing Partners. In or around June 2009, Sigelman negotiated two favorable terms for the owners of the Target Company in exchange for kick-back payments to himself, Hammarskjold, and Weisman - payments that were hidden from the Investing Partners. As a result of the scheme, which continued through February 2010, Sigelman received approximately $239,015 in illegal kick-back payments, Hammarskjold received approximately$106,592, and Weisman received approximately $51,618.
From in or around December 2009 to in or around December 2010, Sigelman, Hammarskjold, and Weisman, on behalf of PetroTiger, attempted to secure an approximately $39.6 million contract with another company, Mansarovar Energy Colombia Ltd., to perform oil related services in Colombia (the "Mansarovar Contract"). Because Colombia's national oil company, Ecopetrol S.A. ("Ecopetrol"), had ultimate authority for approving projects and contracts to perform oil related services in Colombia, Sigelman, Hammarskjold, and Weisman were required to obtain approval from Ecopetrol for the Mansarovar Contract. In order to secure Ecopetrol's approval for the Mansarovar Contract, Sigelman, Hammarskjold, and Weisman, together with others, paid bribes to an official (the "Official") employed by Ecopetrol who had the ability to influence the approval process. Sigelman, Hammarskjold, Weisman, and others attempted to conceal most of the bribe payments by funneling them through the Official's wife (the "Official's Wife") and falsely claimed in documents that the payments were for "consulting services" that the Official's Wife purportedly performed for PetroTiger. The Official's Wife did not, in fact, perform any such services. Sigelman, Hammarskjold, and Weisman, together with others, made at least four transfers for the benefit of the Official totaling approximately $333,500. Sigelman, Hammarskjold, Weisman, and others were successful in obtaining Ecopetrol's approval and secured the Mansarovar Contract on behalf of PetroTiger. The Mansarovar Contract was valued at approximately $39.6 million.
On May 9, 2014, the DOJ filed a six count Indictment against Sigelman alleging violations of the anti-bribery provisions of the FCPA and conspiracy to violate the anti-bribery provisions of the FCPA, as well as money laundering, conspiracy to commit wire fraud, and conspiracy to launder money. Sigelman's case proceeded to trial.
On June 15, 2015, during the third week of his trial, Sigelman pleaded guilty to one count of conspiring to violate the FCPA. Sigelman was sentenced to three years probation and ordered to pay a $100,000 fine and $239,015.45 in restitution.
