From 1999 to 2007, Jorge Granados was the founder, Chief Executive Officer ("CEO"), and Chairman of the Board of Latin Node. Latin Node, Inc. ("Latinode"), which was headquartered in Miami, Florida, provided wholesale telecommunications services using internet protocol technology in a number of countries throughout the world. In June 2007, eLandia International, Inc. ("eLandia") acquired Latinode, and subsequently discovered potentially corrupt payments to government officials. Counsel for eLandia and Latinode, Holland & Knight LLP ("Holland & Knight"), voluntarily disclosed the improper payments to the government.
From November 2003 to December 2005, Latinode sought a Honduran Official's assistance in winning an interconnection agreement with Hondutel, which would permit Latinode to use Hondutel's telecommunications lines. Jorge Granados and Manuel Caceres (senior executive of Latinode) paid over $500,000 to third parties, knowing that some or all of those funds would be passed on as bribes to officials of Hondutel, the Honduran state owned telecommunications company. The payments were made in exchange for obtaining an interconnection agreement with Hondutel, as well as for reducing the rate per minute under the interconnection agreement.
On December 21, 2010, the DOJ filed a 19 count indictment against Jorge Granados and Manuel Caceres, charging them with conspiracy to violate the anti-bribery provisions, violating the anti-bribery provisions, aiding and abetting, conspiracy to violate the FCPA's money laundering provisions, violating the money laundering provisions, and violating the criminal forfeiture provisions of the FCPA. On May 19, 2011, Jorge Granados pleaded guilty to 1 count of conspiracy to violate the FCPA, and in exchange, the DOJ agreed to dismiss the remaining 18 counts. In September 2011, Jorge Granados was sentenced to 46 months in prison, followed by 2 years of supervised release.
On May 20, 2011, Manuel Caceres also pleaded guilty to 1 count of conspiracy to violate the FCPA, and in exchange, the DOJ agreed to dismiss the remaining 18 counts. He was sentenced to 23 months in prison, followed by 1 year of supervised release.
