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 | Enforcement Action Dataset

Stanford Foreign Corrupt Practices Act Clearinghouse a Collaboration with Sullivan & Cromwell LLP

Enforcement Action Dataset

 
United States of America v. Eduardo Betancourt, et al. · HMT's Involvement in Venezuela and China from 1999 to 2011

Case Information

United States of America v. Eduardo Betancourt, et al.

Related FCPA Matter:   HMT's Involvement in Venezuela and China from 1999 to 2011 Information

Case Information

Initiation Date:    02/02/2016  Information

Prosecuting Agency:    U.S. Department of Justice

Type of Action:    DOJ Criminal Proceeding

Docket or Case Number:    16-cr-00053

Court:    S.D. Texas

Name of Prosecuting Attorneys:   

  • Kenneth Magidson, United States Attorney
  • John P. Pearson, Deputy Chief
  • Andrew Weissman, Chief, Fraud Section, Criminal Division
  • Lorinda Laryea, Trial Attorney, Fraud Section, Criminal Division
  • Patrick M. Pericak, Senior Trial Attorney, Fraud Section, Criminal Division

US Assisting Agencies:   

  • Federal Bureau of Investigation
  • Department of Justice - Criminal Division's Office of International Affairs

Foreign Enforcement Action/Investigation:    Unknown

Foreign Assistance:   

  • Panamanian Law Enforcement Agency (PA)

Origin of the Proceeding:    Unknown

Whistleblower:    Unknown

Case Status:    Resolved


Summary  Information

HMT LLC ("HMT"), incorporated in Delaware and based in Texas, was in the business of manufacturing, supplying, and servicing aboveground liquid storage tanks for the petroleum, oil, and gas industries.

Franklin Marsan was hired by HMT in 1997 as a sales manager for the company's Latin American sales group. By the time he left the company in 2011, he had been promoted to the Regional Sales Manager for Latin American Sales.

Eduardo Betancourt was hired by HMT in 2001 as an account manager for the company's Latin American sales group. When Marsan departed in May 2011, Betancourt assumed the role of Regional Sales Manager for Latin American Sales.

From 2008 through at least March 2011, Marsan and Betancourt engaged in a scheme to receive kickbacks from commissions that were being paid to third-party sales agents in Latin America. These commissions were in connection with sales HMT was making in several Latin American countries, but the company was unaware that the kickbacks were being paid to Marsan and Betancourt.

Press reports indicate that Marsan and Betancourt were the two unnamed employees involved in HMTs bribery scheme in Venezuela, which is detailed in the related DOJ declination against HMT.

On February 2, 2016, the DOJ filed a single count information in the Southern District of Texas against Betancourt and Marsan alleging conspiracy to commit wire fraud. On February 26, 2016, both defendants entered separate plea agreements with the DOJ. On December 22, 2017, the court sentenced Marsan to 1 year and a day in prison to be followed by 2 years of supervised release and further ordered Marsan to pay $150,000 in restitution as well as a mandatory assessment of $100. On December 26, 2017, the court sentenced Betancourt to 1 year and a day in prision to be followed by 2 years of supervised release and further ordered Betancourt to pay $150,000 in restitution as well as a mandatory assessment of $100. Both Betancourt and Marsan are jointly and severally liable for the $150,000 in restitution.

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