ABB Ltd., a Swiss corporation with headquarters in Zurich, Switzerland, is a global provider of power and automation technologies. ABB had numerous direct and indirect subsidiaries, including ABB Inc., a U.S. subsidiary whose financial results were part of ABB's consolidated financial statements filed with the SEC.
Ali Hozhabri was a project manager for ABB Network Management ("ABB NM"), a Texas-based division of ABB Inc.
From about October 2001 through about March 2004, Hozhabri and his co-conspirators obtained cash and checks from ABB NM, purportedly to pay for "local works," "subcontractor fees," "local field support," "consulting resources," and "commissions" associated with contracts ABB NM was performing for Itaipu Binacional ("ITAIPU"), an entity owned by the governments of Brazil and Paraguay, and for Abu Dhabi Company for Onshore Oil Operations ("ADCO"), a division of a government-owned company in the United Arab Emirates. In fact, the co-conspirators kept the funds for their own personal benefit. In total, Hozhabri kept approximately $234,357.14 of the $468,714.28 embezzled from ABB NM. No bribery was alleged.
On November 1, 2007, the DOJ filed a six count Indictment in the Southern District of Texas against Hozhabri alleging (1-3) bulk cash smuggling and aiding and abetting bulk cash smuggling and (4-6) failure to file reports regarding monetary instruments and aiding and abetting the same. On June 19, 2008, the DOJ filed a single count Superseding Information in the Southern District of Texas against Hozhabri alleging conspiracy to commit wire fraud. On June 23, 2008, Hozhabri entered into a Plea Agreement with the DOJ. Under the terms of the agreement, Hozhabri pleaded guilty to the single charge of conspiracy to commit wire fraud and agreed to forfeit $468,714.28.
On July 21, 2012, the court filed an amended judgment against Hozhabri. The court sentenced Hozhabri to 1 year of probation and ordered him to pay restitution of $234,357.14 plus a mandatory assessment of $100.
