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Enforcement Action Dataset

 

Initiation Date:    12/19/2018  Information

Prosecuting Agency:    US Department of Justice

Name of Prosecuting Attorneys:   

  • Richard P. Donoghue, United States Attorney
  • Deborah L. Connor, Chief, Money Laundering and Asset Recovery Section, Criminal Division
  • Daniel S. Kahn, Chief, FCPA Unit, Fraud Section, Criminal Division
  • Matthew S. Amatruda, Assistant United States Attorney
  • Mark E. Bini, Assistant United States Attorney
  • Margaret Moeser, Trial Attorney, Money Laundering & Asset Recovery Section, Criminal Division

Assisting Agencies:    Unknown

Type of Action:    DOJ Criminal Proceeding

Docket or Case Number:    18-cr-00681

Court:    E.D. New York

Origin of the Proceeding:    Unknown

Whistleblower:    Unknown

Case Status:    Ongoing


Summary  Information

Credit Suisse Group AG was a global investment banking, securities, and investment management firm incorporated in Switzerland, and its securities were registered with the SEC and traded on the New York Stock Exchange. It conducted its activities primarily through various subsidiaries and affiliates.

Privinvest Group was an Abu Dhabi, United Arab Emirates-based holding company consisting of numerous subsidiaries (collectively, "Privinvest"). Privinvest billed itself as "one of the largest global shipbuilding groups for naval vessels, fuel-cell submarines, superyachts, offshore constmctions and associated services."

Proindicus S.A. ("Proindicus"), Empresa Mocambicana de Atum, S.A. ("EMATUM") and Mozambique Asset Management ("MAM") were companies owned, controlled, and overseen by the Government of Mozambique. The companies were created to undertake three maritime projects in Mozambique. Proindicus was to perform coastal surveillance, EMATUM was to engage in tuna fishing, and MAM was to build and maintain shipyards.

Andrew Pearse, a New Zealand citizen, was a managing director at Credit Suisse and the head of Credit Suisse's Global Financing Group.

Surjan Singh, a U.K. citizen, was a managing director in Credit Suisse's Global Financing Group.

Detelina Subeva, a citizen of Bulgaria, was a vice president in Credit Suisse's Global Financing Group.

Jean Boustani, also known as Jean Boustany, was a Lebanese citizen the lead salesman and negotiator for Privinvest.

Manuel Chang was Mozambique's Minister of Finance.

Initially, three other defendants names were redacted, but they have since been identified as Najib Allam, Antonio Do Rosario, and Teofilo Nhangumele. However, an unredacted version of the indictment was not yet available at the time of the last update, so more about them will be added when an unredacted indictment is available.

According to the indictment filed in this case, between approximately 2013 and 2016, the DOJ alleged that the defendants engaged in a conspiracy to to defraud investors and potential investors in a series of loans to Proindicus, EMATUM, and MAM--loans valued in excess of $2 billion that had been guaranteed by the government of Mozambique. The loans were arranged by Credit Suisse and second, unnamed investment bank and sold to investors worldwide. According to the indictment, the conspirators made numerous material misrepresentations and omissions relating to, among other things: (i) the use of loan proceeds, (ii) bribe and kickback payments to Mozambican government officials and bankers, (iii) the amount and maturity dates of debt owed by Mozambique, and (iv) Mozambique's ability and intention to pay back the investors. As part of the conspiracy, numerous Mozambican government officials received bribe and kickback payments from Privinvest in connection with the Mozambican projects. Specifically, Chang allegedly received at least $5 million in bribe and kickback payments from Privinvest, and three unindicted co-conspirators received at least $8.5 million, $9.7 million, and $2 million, respectively, in bribe and kickback payments from Privinvest. Though redacted, it appears that at least two of the redacted defendants also received bribes. Boustani, Pearse, Singh, and Subeva were also alleged to have received kickbacks from the scheme that ran into the millions of dollars each.

On December 19, 2018, the DOJ filed a four count indictment under seal in the Eastern District of New York alleging (1) conspiracy to commit wire fraud, (2) conspiracy to commit securities fraud, (3) conspiracy to violate the anti-bribery and internal controls provisions of the FCPA, and (4) conspiracy to commit money laundering. On January 3, 2019, the court unsealed the indictment as to Boustani, Chang, Pearse, Singh, and Subeva. On March 6, 2019, the court ordered the indictment as to the other three defendants unsealed, but the document does not appear to be available yet.

On May 20, 2019, Subeva appeared to plead guilty to at least one count of the indictment, and later filings in the docket indicate that her plea was in connection with a plea agreement. However, the plea agreement does not appear to be available.

On July 19, 2019, Pearse pled guilty to the first count of the indictment and not guilty to the other counts.

On August 16, 2019, the DOJ filed a four count superseding indictment against Boustani, Allam, Chang, Do Rosario, Nhangumele, and Singh alleging the same counts as the earlier indictment.

On September 6, 2019, Singh pled guilty to the fourth count of the superseding indictment.

After a trial that began on October 15, 2019, Boustani was acquitted on all counts on December 2, 2019.

The case against the remaning defendants appears to be ongoing.

Country(ies) involved:    Mozambique

Region(s) involved:    Africa

Total $ Sanctions Imposed by U.S. Government (FCPA-Related Charges Only):    $0

Sanction to Bribe Ratio:    Not Applicable

Sanction to Revenue Ratio:    Not Applicable

Sanction to Profit Ratio:    Not Applicable

FCPA Matter Name:   Credit Suisse's Involvement in Mozambique between 2013 and 2016 Information

Number of Related Enforcement Actions (Including This Enforcement Action):    1

Country(ies) involved:    Mozambique

Region(s) involved:    Africa

Total $ Bribery Payments:    $16,700,000

Total $ Revenue Generated from Bribery:    Unknown

Total $ Profit Earned or Expenses Avoided from Bribery:    Unknown

Total $ Sanctions Imposed by U.S. Government (FCPA-Related Charges Only):    $0

Sanction to Bribe Ratio:    Not Applicable

Sanction to Revenue Ratio:    Not Applicable

Sanction to Profit Ratio:    Not Applicable

Name:    Jean Boustani, aka Jean Boustany

Employers & Positions:    Privinvest Group - Lead Salesman and Negotiator

Country:    Lebanon

FCPA Claims:    None

Related Claims:    Conspiracy to Commit Wire Fraud (18 U.S.C. § 1343; 18 U.S.C. § 1349; 18 U.S.C. § 3551) ; Conspiracy to Commit Securities Fraud (18 U.S.C. § 371; 15 U.S.C. §§ 78j(b) and 78ff) ; Conspiracy to Launder Money (18 U.S.C. §§ 1956, 1957) ; Criminal Forfeiture (18 U.S.C. § 982) ; Criminal Forfeiture (21 U.S.C. § 853) ; Criminal Forfeiture (28 U.S.C. § 2461; 18 U.S.C. § 981)

Statutory Basis for FCPA Jurisdiction:    Not Applicable


Name:    Najib Allam

Employers & Positions:   

Country:   

FCPA Claims:    None

Related Claims:    Conspiracy to Commit Wire Fraud (18 U.S.C. § 1343; 18 U.S.C. § 1349; 18 U.S.C. § 3551) ; Conspiracy to Commit Securities Fraud (18 U.S.C. § 371; 15 U.S.C. §§ 78j(b) and 78ff) ; Conspiracy to Launder Money (18 U.S.C. §§ 1956, 1957) ; Criminal Forfeiture (18 U.S.C. § 982) ; Criminal Forfeiture (21 U.S.C. § 853) ; Criminal Forfeiture (28 U.S.C. § 2461; 18 U.S.C. § 981)

Statutory Basis for FCPA Jurisdiction:    Not Applicable


Name:    Manuel Chang

Employers & Positions:    - Mozambique Minister of Finance

Country:    Mozambique

FCPA Claims:    None

Related Claims:    Conspiracy to Commit Wire Fraud (18 U.S.C. § 1343; 18 U.S.C. § 1349; 18 U.S.C. § 3551) ; Conspiracy to Commit Securities Fraud (18 U.S.C. § 371; 15 U.S.C. §§ 78j(b) and 78ff) ; Conspiracy to Launder Money (18 U.S.C. §§ 1956, 1957) ; Criminal Forfeiture (18 U.S.C. § 982) ; Criminal Forfeiture (21 U.S.C. § 853) ; Criminal Forfeiture (28 U.S.C. § 2461; 18 U.S.C. § 981)

Statutory Basis for FCPA Jurisdiction:    Not Applicable


Name:    Antonio De Rosario

Employers & Positions:   

Country:   

FCPA Claims:    None

Related Claims:    Conspiracy to Commit Wire Fraud (18 U.S.C. § 1343; 18 U.S.C. § 1349; 18 U.S.C. § 3551) ; Conspiracy to Commit Securities Fraud (18 U.S.C. § 371; 15 U.S.C. §§ 78j(b) and 78ff) ; Conspiracy to Launder Money (18 U.S.C. §§ 1956, 1957) ; Criminal Forfeiture (18 U.S.C. § 982) ; Criminal Forfeiture (21 U.S.C. § 853) ; Criminal Forfeiture (28 U.S.C. § 2461; 18 U.S.C. § 981)

Statutory Basis for FCPA Jurisdiction:    Not Applicable


Name:    Teofilo Nhangumele

Employers & Positions:   

Country:   

FCPA Claims:    None

Related Claims:    Conspiracy to Commit Wire Fraud (18 U.S.C. § 1343; 18 U.S.C. § 1349; 18 U.S.C. § 3551) ; Conspiracy to Launder Money (18 U.S.C. §§ 1956, 1957) ; Criminal Forfeiture (18 U.S.C. § 982) ; Criminal Forfeiture (21 U.S.C. § 853) ; Criminal Forfeiture (28 U.S.C. § 2461; 18 U.S.C. § 981)

Statutory Basis for FCPA Jurisdiction:    Not Applicable


Name:    Andrew Pearse

Employers & Positions:    Credit Suisse Group AG - Managing Director

Country:    New Zealand

FCPA Claims:    Anti-Bribery, Conspiracy (18 U.S.C. 371) ; Internal Controls, Conspiracy (18 U.S.C. 371)

Related Claims:    Conspiracy to Commit Wire Fraud (18 U.S.C. § 1343; 18 U.S.C. § 1349; 18 U.S.C. § 3551) ; Conspiracy to Commit Securities Fraud (18 U.S.C. § 371; 15 U.S.C. §§ 78j(b) and 78ff) ; Conspiracy to Launder Money (18 U.S.C. §§ 1956, 1957) ; Criminal Forfeiture (18 U.S.C. § 982) ; Criminal Forfeiture (21 U.S.C. § 853) ; Criminal Forfeiture (28 U.S.C. § 2461; 18 U.S.C. § 981)

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


Name:    Surjan Singh

Employers & Positions:    Credit Suisse Group AG - Managing Director of Global Financing Group

Country:    United Kingdom

FCPA Claims:    Anti-Bribery, Conspiracy (18 U.S.C. 371) ; Internal Controls, Conspiracy (18 U.S.C. 371)

Related Claims:    Conspiracy to Commit Wire Fraud (18 U.S.C. § 1343; 18 U.S.C. § 1349; 18 U.S.C. § 3551) ; Conspiracy to Commit Securities Fraud (18 U.S.C. § 371; 15 U.S.C. §§ 78j(b) and 78ff) ; Conspiracy to Launder Money (18 U.S.C. §§ 1956, 1957) ; Criminal Forfeiture (18 U.S.C. § 982) ; Criminal Forfeiture (21 U.S.C. § 853) ; Criminal Forfeiture (28 U.S.C. § 2461; 18 U.S.C. § 981)

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


Name:    Detelina Subeva

Employers & Positions:    Credit Suisse Group AG - Vice President of Global Financing Group

Country:    Bulgaria

FCPA Claims:    Anti-Bribery, Conspiracy (18 U.S.C. 371) ; Internal Controls, Conspiracy (18 U.S.C. 371)

Related Claims:    Conspiracy to Commit Wire Fraud (18 U.S.C. § 1343; 18 U.S.C. § 1349; 18 U.S.C. § 3551) ; Conspiracy to Commit Securities Fraud (18 U.S.C. § 371; 15 U.S.C. §§ 78j(b) and 78ff) ; Conspiracy to Launder Money (18 U.S.C. §§ 1956, 1957) ; Criminal Forfeiture (18 U.S.C. § 982) ; Criminal Forfeiture (21 U.S.C. § 853) ; Criminal Forfeiture (28 U.S.C. § 2461; 18 U.S.C. § 981)

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

Name:    Credit Suisse Group AG

Entity Type:    Public Company

Place of Incorporation:    Switzerland

HQ Country(ies):    Switzerland

Industry:    Financial

Period of Bribery:   2013 - 2016

Total Bribery Payments:    $16,700,000

Total Revenue Generated from Bribery:    Unknown

Total Profit Earned or Expenses Avoided from Bribery:    Unknown

Country(ies) involved:    Mozambique

Region(s) involved:    Africa

Officials Potentially Influenced (Name; Title; Organization): 

  • Name Unknown, Senior Official; Mozambiquan government
  • Name Unknown, Senior Official; Mozambique Ministry of Finance
  • Manuel Chang; Minister of Finance; Mozambiquan government

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

Third-Party Intermediary:   

  • Various third party intermediaries , Agent/Consultant/Broker

Type of Bribe:   Money

Cash, Wire or Check:    Wire Transfer

Purpose of Bribe:    Obtain/retain business

TRANSACTION OVERVIEW
Bribes to Mozambiquan officials

Period of Bribery:   2013 – 2016

Total Bribery Payments:    $16,700,000

Total Revenue Generated from Bribery:    Unknown

Total Profit Earned or Expenses Avoided from Bribery:    Unknown

Country(ies) involved:    Mozambique

Region(s) involved:    Africa

Officials Potentially Influenced (Name; Title; Organization):  

  • Manuel Chang; Minister of Finance; Mozambiquan government;
  • Name Unknown, Senior Official; Mozambiquan government;
  • Name Unknown, Senior Official; Mozambique Ministry of Finance;

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

Third Party Intermediary:    Various third party intermediaries - 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
Andrew Pearse  
Antonio De Rosario  
Detelina Subeva  
Jean Boustani, aka Jean Boustany  
Manuel Chang  
Najib Allam  
Surjan Singh  
Teofilo Nhangumele  

Aggravating Factors Referenced by the Government (Individual Defendants):

Defendant Insufficient Cooperation
Andrew Pearse  
Antonio De Rosario  
Detelina Subeva  
Jean Boustani, aka Jean Boustany  
Manuel Chang  
Najib Allam  
Surjan Singh  
Teofilo Nhangumele  

Total Global Monetary Sanctions (All Charges):    $0

Total Monetary Sanctions Imposed by U.S. Government (FCPA-Related Charges Only):    $0

Total Monetary Sanctions Owed to U.S. Government (FCPA-Related Charges Only):    $0

Case Status:    Ongoing


Disposition:    Undetermined

Date of Disposition:    Undetermined

Najib Allam

—  Total Monetary Sanctions Imposed by U.S. Government for Defendant (FCPA-Related Charges Only):    N/A

—  Imprisonment/Incarceration:    N/A

—  Probation/Supervised Release:    N/A

—  House Arrest:    N/A

—  Community Service:    N/A


Manuel Chang

—  Total Monetary Sanctions Imposed by U.S. Government for Defendant (FCPA-Related Charges Only):    N/A

—  Imprisonment/Incarceration:    N/A

—  Probation/Supervised Release:    N/A

—  House Arrest:    N/A

—  Community Service:    N/A


Antonio De Rosario

—  Total Monetary Sanctions Imposed by U.S. Government for Defendant (FCPA-Related Charges Only):    N/A

—  Imprisonment/Incarceration:    N/A

—  Probation/Supervised Release:    N/A

—  House Arrest:    N/A

—  Community Service:    N/A


Teofilo Nhangumele

—  Total Monetary Sanctions Imposed by U.S. Government for Defendant (FCPA-Related Charges Only):    N/A

—  Imprisonment/Incarceration:    N/A

—  Probation/Supervised Release:    N/A

—  House Arrest:    N/A

—  Community Service:    N/A


Disposition:    Plea Agreement (Sanctions Undetermined)

Date of Disposition:    07/19/2019

Andrew Pearse

—  Total Monetary Sanctions Imposed by U.S. Government for Defendant (FCPA-Related Charges Only):    N/A

—  Imprisonment/Incarceration:    N/A

—  Probation/Supervised Release:    N/A

—  House Arrest:    N/A

—  Community Service:    N/A

—  Admission of Guilt/Acceptance of Responsibility:    Yes


Disposition:    Plea Agreement (Sanctions Undetermined)

Date of Disposition:    05/20/2019

Detelina Subeva

—  Total Monetary Sanctions Imposed by U.S. Government for Defendant (FCPA-Related Charges Only):    N/A

—  Imprisonment/Incarceration:    N/A

—  Probation/Supervised Release:    N/A

—  House Arrest:    N/A

—  Community Service:    N/A

—  Admission of Guilt/Acceptance of Responsibility:    Yes


Disposition:    Plea Agreement (Sanctions Undetermined)

Date of Disposition:    Undetermined

Surjan Singh

—  Total Monetary Sanctions Imposed by U.S. Government for Defendant (FCPA-Related Charges Only):    N/A

—  Imprisonment/Incarceration:    N/A

—  Probation/Supervised Release:    N/A

—  House Arrest:    N/A

—  Community Service:    N/A

—  Admission of Guilt/Acceptance of Responsibility:    Yes


Disposition:    Trial (Criminal) - Acquittal (Acquitted on All Counts)

Date of Disposition:    12/02/2019

Jean Boustani, aka Jean Boustany

—  Total Monetary Sanctions Imposed by U.S. Government for Defendant (FCPA-Related Charges Only):    $0

—  Imprisonment/Incarceration:    None

—  Probation/Supervised Release:    None

—  House Arrest:    None

—  Community Service:    None

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