Enforcement Action

 

Docket or Case Number:    14-cr-00529

Court:    D. Maryland

Initiation Date:    07/25/2014  Information

Prosecuting Agency:    US Department of Justice

Name of Prosecuting Attorneys:   

  • Andrew Weissman, Chief, Fraud Section, Criminal Division
  • Rod J. Rosenstein, United States Attorney
  • David I. Salem, Assistant United States Attorney
  • Michael T. Packard, Assistant United States Attorney
  • Christopher Cestaro, Trial Attorney, Fraud Section, Criminal Division
  • Ephraim Wernick, Trial Attorney, Fraud Section, Criminal Division
  • Derek J. Ettinger, Trial Attorney, Fraud Section, Criminal Division

Assisting Agencies:    Federal Bureau of Investigation , U.S. Department of Energy - Office of the Inspector General

Type of Action:    DOJ Criminal Proceeding

Origin of the Proceeding:    N/A

Whistleblower:    Unknown

Case Status:    Resolved


Summary  Information

Prior to 2007, JSC Techsnabexport ("'TENEX") was a wholly-owned subsidiary of Rosimushchestvo, the Russian Federation's agency responsible for state property management. Beginning in 2007, TENEX was a wholly-owned subsidiary of JSC Atomenergoprom, which was a wholly-owned subsidiary of The State Atomic Energy Corporation ROSATOM ("ROSATOM"). TENEX operated as the sole supplier and exporter of Russian Federation uranium and uranium enrichment services to nuclear power companies worldwide. In about October 2010, TENEX established TENAM Corporation ("TENAM") as its wholly-owned subsidiary and official representative in the United States.

Vadim Mikerin was a Director of the Pan American Department of TENEX from about 2004 through about 2010, and was the President of TENAM from about October 2010 through about October 2014.

Between 2004 and October 2014, Mikerin conspired with others to transmit funds from Maryland and elsewhere in the United States to offshore shell company bank accounts located in Cyprus, Latvia, and Switzerland for the purpose of promoting a corrupt payment scheme that violated the FCPA. The payments were made to influence Mikerin and to secure improper business advantages for U.S. companies that did business with TENEX. Mikerin used consulting agreements and code words such as “lucky figure,” “LF,” “cake” and “remuneration” to disguise the corrupt payments.

The case against Mikerin was initiated under seal in the District of Maryland on July 25, 2014 by the DOJ. On August 27, 2015, the DOJ filed a superseding information against Mikerin alleging conspiracy to commit money laundering. On August 31, 2015, Mikerin entered into a plea agreement with the DOJ in which he pleaded guilty to the single count of conspiracy. On December 15, 2015, the court sentenced Mikerin to 4 years in prison and ordered him to pay a mandatory assessment of $100 and forfeit $2,126,622.36.

There are several related proceedings connected to this one. The DOJ initiated a case under seal in the District of Maryland on October 29, 2014, against Boris Rubizhevsky, the owner and sole employee of NexGen Security Corporation. On June 10, 2015, the DOJ filed a sealed information (unsealed on June 15) against Rubizhevsky alleging conspiracy to commit money laundering. On June 15, 2015, Rubizhevsky entered into a plea agreement with the DOJ in which he pleaded guilty to the conspiracy charge. On November 13, 2017, the court sentenced Rubizhevsky to one year and one day in prison to be followed by three years of supervised release. Rubizhevsky also agreed to forfeit $26,500.

On January 10, 2018, the DOJ filed a single count information in the District of Maryland against Transport Logistics International, Inc., ("TLI") alleging conspiracy to violate the anti-bribery provisions of the FCPA. On March 12, 2018, the company entered into a deferred prosecution agreement with the DOJ. Under the terms of the agreement, TLI agreed to pay a fine of $2 million, continue to implement its enhanced compliance policies and procedures, and to report on the status of its anti-corruption compliance to the DOJ for a term of three years. The DOJ noted the company's thorough cooperation and remediation and determined that a departure of 25% below the sentencing guidelines range was an appropriate fine. That 25% departure would have been a fine of $21,375,000, but the company represented, and the DOJ confirmed, that it was unable to pay a fine greater than $2 million.

On January 10, 2018, the DOJ filed an eleven count indictment in the District of Maryland against Mark T. Lambert, an owner and executive of TLI from about August 1998 through about September 2016, alleging (1) conspiracy to violated the anti-bribery provisions of the FCPA and conspiracy to commit wire fraud, (2-8) direct violations of the anti-bribery provisions of the FCPA, (9-10) wire fraud, and (11) money laundering. On January 25, 2018, Lambert pled not guilty, and his case is ongoing.

The DOJ initiated a case against Daren Condrey, an owner and executive of TLI, under seal in the District of Maryland on October 29, 2014. On June 16, 2015, the DOJ filed a sealed information (unsealed on June 17, 2015) against Condrey alleging conspiracy to violate the FCPA and conspiracy to commit wire fraud. On June 17, 2015, Condrey entered into a plea agreement with the DOJ in which he pleaded guilty to both conspiracy charges. Condrey was scheduled to be sentenced on June 1, 2017. It does not appear Condrey has been sentenced yet, so that case is ongoing.

Country(ies) involved:    Russia

Sanction to Bribe Ratio:    $2,126,722 / $2,126,622 = 100.00 %

Sanction to Revenue Ratio:    N/A

Sanction to Profit Ratio:    N/A

Number of Related Enforcement Actions (Including This Enforcement Action):    5

Country(ies) involved:    Russia

Total $ Bribery Payments:    $2,126,622

Total $ Revenue Generated from Bribery:    N/A

Total $ Profit Earned or Expenses Avoided from Bribery:    N/A

Total $ Monetary Sanctions:    $4,153,222

Sanction to Bribe Ratio:    $4,153,222 / $2,126,622 = (195.30 %)

Sanction to Revenue Ratio:    N/A

Sanction to Profit Ratio:    N/A

Name:    Vadim Mikerin

Employers & Positions:    JSC Techsnabexport ("TENEX") - Director of the Pan American Department ; TENAM Corporation - President

Country:    Russia, United States

FCPA Claims:    N/A

Related Claims:    Conspiracy to Launder Money (18 U.S.C. § 371; 18 U.S.C. §§ 1956, 1957) ; Criminal Forfeiture (18 U.S.C. § 982) ; Criminal Forfeiture (28 U.S.C. § 2461; 18 U.S.C. § 981) ; Criminal Forfeiture (21 U.S.C. § 853)

Statutory Basis for FCPA Jurisdiction:    Conspirator

Period of Bribery:   2004 - 2014

Total Bribery Payments:    $2,126,622

Total Revenue Generated from Bribery:    N/A

Total Profit Earned or Expenses Avoided from Bribery:    N/A

Country(ies) involved:    Russia

Officials Potentially Influenced (Name; Title; Organization): 

  • Vadim Mikerin; Director of the Pan American Department; JSC Techsnabexport ("TENEX")
  • Vadim Mikerin; President; TENAM Corporation

Defendant-Related Entities Involved in the Misconduct:    N/A

Third-Party Intermediary:   

  • Cypriot shell company , Shell Company
  • Latvian shell company , Shell Company
  • Swiss shell company , Shell Company
  • Vadim Mikerin , Agent/Consultant/Broker

Type of Bribe:   Money

Cash, Wire or Check:    Wire Transfer

Purpose of Bribe:    Obtain/retain business

TRANSACTION OVERVIEW
Payments from Transport Logistics International

Period of Bribery:   2004 – 2014

Total Bribery Payments:    $1,818,462

Total Revenue Generated from Bribery:    N/A

Total Profit Earned or Expenses Avoided from Bribery:    N/A

Country(ies) involved:    Russia

Officials Potentially Influenced (Name; Title; Organization):  

  • Vadim Mikerin; Director of the Pan American Department; JSC Techsnabexport ("TENEX");
  • Vadim Mikerin; President; TENAM Corporation;

Defendant-Related Entities Involved in the Misconduct:    N/A

Third Party Intermediary:    Cypriot shell company - Shell Company
Latvian shell company - Shell Company
Swiss shell company - Shell Company
Vadim Mikerin - Agent/Consultant/Broker

Type of Bribe:   Money

Cash, Wire or Check:    Wire Transfer

Purpose of Bribe:    Obtain/retain business

TRANSACTION OVERVIEW
Payments from Cylinder Corporation One

Period of Bribery:   2011 – 2013

Total Bribery Payments:    $308,160

Total Revenue Generated from Bribery:    N/A

Total Profit Earned or Expenses Avoided from Bribery:    N/A

Country(ies) involved:    Russia

Officials Potentially Influenced (Name; Title; Organization):  

  • Vadim Mikerin; Director of the Pan American Department; JSC Techsnabexport ("TENEX");
  • Vadim Mikerin; President; TENAM Corporation;

Defendant-Related Entities Involved in the Misconduct:    N/A

Third Party Intermediary:    Latvian shell company - Shell Company
Swiss shell company - Shell Company
Vadim Mikerin - Agent/Consultant/Broker

Type of Bribe:   Money

Cash, Wire or Check:    Wire Transfer

Purpose of Bribe:    Obtain/retain business

Misconduct by Subsidiary?  No


M&A Negotiated or Completed During Misconduct, Investigation, or Resolution?     No

N/A

Mitigating Factors Referenced by the Government (Individual Defendants):

Defendant Cooperation
Vadim Mikerin  

Aggravating Factors Referenced by the Government (Individual Defendants):

Defendant Insufficient Cooperation
Vadim Mikerin  

Total Monetary Sanctions for the Action:    $2,126,722

Case Status:    Resolved


Disposition:    Plea Agreement

Date of Disposition:    12/15/2015

Vadim Mikerin

—  Total Monetary Sanctions for Defendant:    $2,126,722

—  Imprisonment/Incarceration:    48 months

—  Probation/Supervised Release:    None

—  House Arrest:    None

—  Community Service:    None

—  Admission of Guilt/Acceptance of Responsibility:    Yes

No Document Title Date Category