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Enforcement Action Dataset

 

Docket or Case Number:    15-cr-00654

Court:    S.D. Texas

Initiation Date:    12/10/2015  Information

Prosecuting Agency:    US Department of Justice

Name of Prosecuting Attorneys:   

  • Kenneth Magidson, United States Attorney
  • John P. Pearson, Deputy Chief
  • Robert S. Johnson, Assistant United States Attorney
  • Andrew Weissman, Chief, Fraud Section, Criminal Division
  • Aisling O'Shea, Trial Attorney, Fraud Section, Criminal Division
  • Jeremy R. Sanders, Trial Attorney, Fraud Section, Criminal Division

Assisting Agencies:    Internal Revenue Service , Department of Justice- Criminal Division’s Office of International Affairs , U.S. Immigration and Customs Enforcement

Type of Action:    DOJ Criminal Proceeding

Origin of the Proceeding:    Unknown

Whistleblower:    Unknown

Case Status:    Ongoing


Summary  Information

Roberto Enrique Rincon-Fernandez ("Rincon") was a resident of Texas who controlled, together with others, a number of closely held companies, which were used to secure contracts with Petroleos de Venezuela, S.A. ("PDVSA"), the state-owned and state-controlled oil company in Venezuela.

Abraham Jose Shiera-Bastidas ("Shiera") was a Venezuelan national who resided in Florida and controlled, together with others, a number of closely held companies, which were used to secure contracts with PDVSA.

From about 2009 through 2014, Rincon and Shiera, along with others, conspired to enrich themselves by obtaining and retaining lucrative energy contracts with PDVSA through corrupt and fraudulent means, including by paying bribes to PDVSA officials. Over the course of the scheme, Rincon and Shiera paid at least approximately $1.6 million in monetary bribes--as well as some additional undetermined amount for recreational travel, meals, and entertainment--to five separate PDVSA officials in order to secure those contracts.

On December 10, 2015, the DOJ filed an eighteen count sealed indictment in the Southern District of Texas against Rincon and Shiera alleging (1) conspiracy to violate the anti-bribery provisions of the FCPA, (2-10) direct violations of the anti-bribery provisions of the FCPA, (11) conspiracy to commit money laundering, and (12-18) money laundering. Shiera pled guilty on March 22, 2016, though the agreement remains sealed, so its details are unknown. Rincon pled guilty on June 16, 2016, though the agreement remains sealed, so its details are unknown. On January 5, 2017, the court entered a forfeiture order against Shiera in the amount of $18,824,797.67. Rincon and Shiera are scheduled to be sentenced on February 21, 2019.

Country(ies) involved:    Venezuela

Sanction to Bribe Ratio:    Not Applicable

Sanction to Revenue Ratio:    Not Applicable

Sanction to Profit Ratio:    Not Applicable

Number of Related Enforcement Actions (Including This Enforcement Action):    14

Country(ies) involved:    Venezuela

Total $ Bribery Payments:    Unknown

Total $ Revenue Generated from Bribery:    Unknown

Total $ Profit Earned or Expenses Avoided from Bribery:    Unknown

Total $ Monetary Sanctions:    $37,466,643

Sanction to Bribe Ratio:    Not Applicable

Sanction to Revenue Ratio:    Not Applicable

Sanction to Profit Ratio:    Not Applicable

Name:    Roberto Enrique Rincon-Fernandez

Employers & Positions:   

Country:    United States, Venezuela

FCPA Claims:    Anti-Bribery, Conspiracy (18 U.S.C. 371) ; Anti-Bribery, Primary, Domestic Concern (15 U.S.C. § 78dd-2) ; 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 Commit Wire Fraud (18 U.S.C. § 371; 18 U.S.C. § 1343) ; Conspiracy to Launder Money (18 U.S.C. §§ 1956, 1957) ; Money Laundering (18 U.S.C. § 1956) ; Money Laundering (18 U.S.C. § 1957) ; Aiding and Abetting/Causing Money Laundering (18 U.S.C. § 2; 18 U.S.C. §§ 1956, 1957) ; Criminal Forfeiture (28 U.S.C. § 2461; 18 U.S.C. § 981) ; Criminal Forfeiture (18 U.S.C. § 982) ; Filing False Income Tax Returns (26 U.S.C. § 7206)

Statutory Basis for FCPA Jurisdiction:    Domestic Concern ; Domestic Concern (Officer) ; Domestic Concern (Director) ; Domestic Concern (Employee) ; Domestic Concern (Agent) ; Domestic Concern (Stockholder) ; Aider & Abettor/Cause/Control Person ; Conspirator


Name:    Abraham Jose Shiera-Bastidas

Employers & Positions:   

Country:    Venezuela, United States

FCPA Claims:    Anti-Bribery, Conspiracy (18 U.S.C. 371) ; Anti-Bribery, Primary, Domestic Concern (15 U.S.C. § 78dd-2) ; 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 Commit Wire Fraud (18 U.S.C. § 371; 18 U.S.C. § 1343) ; Conspiracy to Launder Money (18 U.S.C. §§ 1956, 1957) ; Money Laundering (18 U.S.C. § 1956) ; Money Laundering (18 U.S.C. § 1957) ; Aiding and Abetting/Causing Money Laundering (18 U.S.C. § 2; 18 U.S.C. §§ 1956, 1957) ; Criminal Forfeiture (28 U.S.C. § 2461; 18 U.S.C. § 981) ; Criminal Forfeiture (18 U.S.C. § 982)

Statutory Basis for FCPA Jurisdiction:    Domestic Concern ; Domestic Concern (Officer) ; Domestic Concern (Director) ; Domestic Concern (Employee) ; Domestic Concern (Agent) ; Domestic Concern (Stockholder) ; Aider & Abettor/Cause/Control Person ; Conspirator

Period of Bribery:   2009 - 2014

Total Bribery Payments:    Unknown

Total Revenue Generated from Bribery:    Unknown

Total Profit Earned or Expenses Avoided from Bribery:    Unknown

Country(ies) involved:    Venezuela

Officials Potentially Influenced (Name; Title; Organization): 

  • Official A; Buyer/Supervisor; Petroleos de Venezuela, S.A.
  • Official B; Purchasing Analyst; Petroleos de Venezuela, S.A.
  • Official C; Purchasing Manager/Superintendent of Purchasing; Petroleos de Venezuela, S.A.
  • Official D; Buyer; Petroleos de Venezuela, S.A.
  • Official E; Purchasing Manager; Petroleos de Venezuela, S.A.

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

Third-Party Intermediary:   

  • Rincon Company 1 , Shell Company
  • Rincon Company 2 , Shell Company
  • Rincon Company 3 , Shell Company
  • Rincon Company 4 , Shell Company
  • Shiera Company , Shell Company
  • Shiera Company 1 , Shell Company
  • Shiera Company 2 , Shell Company
  • Shiera Company 3 , Shell Company
  • Shiera Company 4 , Shell Company
  • Shiera Company 5 , Shell Company
  • Shiera Company 6 , Shell Company

Type of Bribe:   Money, Travel/Lodging, Non-Cash Gifts

Cash, Wire or Check:    Wire Transfer, Check/Bank Draft

Purpose of Bribe:    Obtain/retain business

TRANSACTION OVERVIEW
Monetary bribes to Petroleos de Venezuela

Period of Bribery:   2009 – 2014

Total Bribery Payments:    $1,623,736

Total Revenue Generated from Bribery:    Unknown

Total Profit Earned or Expenses Avoided from Bribery:    Unknown

Country(ies) involved:    Venezuela

Officials Potentially Influenced (Name; Title; Organization):  

  • Official A; Buyer/Supervisor; Petroleos de Venezuela, S.A.;
  • Official B; Purchasing Analyst; Petroleos de Venezuela, S.A.;
  • Official C; Purchasing Manager/Superintendent of Purchasing; Petroleos de Venezuela, S.A.;
  • Official D; Buyer; Petroleos de Venezuela, S.A.;
  • Official E; Purchasing Manager; Petroleos de Venezuela, S.A.;

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

Third Party Intermediary:    Rincon Company 1 - Shell Company
Rincon Company 2 - Shell Company
Rincon Company 3 - Shell Company
Rincon Company 4 - Shell Company
Shiera Company 1 - Shell Company
Shiera Company 2 - Shell Company
Shiera Company 3 - Shell Company
Shiera Company 4 - Shell Company
Shiera Company 5 - Shell Company
Shiera Company 6 - Shell Company

Type of Bribe:   Money

Cash, Wire or Check:    Wire Transfer, Check/Bank Draft

Purpose of Bribe:    Obtain/retain business

TRANSACTION OVERVIEW
Non-monetary bribes to Petroleos de Venezuela

Period of Bribery:   2009 – 2014

Total Bribery Payments:    Unknown

Total Revenue Generated from Bribery:    Unknown

Total Profit Earned or Expenses Avoided from Bribery:    Unknown

Country(ies) involved:    Venezuela

Officials Potentially Influenced (Name; Title; Organization):  

  • Official D; Buyer; Petroleos de Venezuela, S.A.;
  • Official C; Purchasing Manager/Superintendent of Purchasing; Petroleos de Venezuela, S.A.;

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

Third Party Intermediary:    Shiera Company - Shell Company

Type of Bribe:   Travel/Lodging, Non-Cash Gifts

Cash, Wire or Check:    Unknown

Purpose of Bribe:    Obtain/retain business

Misconduct by Subsidiary?  No

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

Not Applicable

Mitigating Factors Referenced by the Government (Individual Defendants):

Defendant Cooperation
Abraham Jose Shiera-Bastidas  
Roberto Enrique Rincon-Fernandez  

Aggravating Factors Referenced by the Government (Individual Defendants):

Defendant Insufficient Cooperation
Abraham Jose Shiera-Bastidas  
Roberto Enrique Rincon-Fernandez  

Total Monetary Sanctions for the Action:    $18,824,798

Case Status:    Ongoing


Disposition:    Plea Agreement (Sentence Pending, Forfeiture/Disgorgement Ordered)

Date of Disposition:    07/01/2016

Abraham Jose Shiera-Bastidas

—  Total Monetary Sanctions for Defendant:    $18,824,798

—  Imprisonment/Incarceration:    None

—  Probation/Supervised Release:    None

—  House Arrest:    None

—  Community Service:    None

—  Admission of Guilt/Acceptance of Responsibility:    Yes


Disposition:    Plea Agreement (Sanctions Undetermined)

Date of Disposition:    Undetermined

Roberto Enrique Rincon-Fernandez

—  Total Monetary Sanctions for Defendant:    $0

—  Imprisonment/Incarceration:    None

—  Probation/Supervised Release:    None

—  House Arrest:    None

—  Community Service:    None

—  Admission of Guilt/Acceptance of Responsibility:    Yes

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