Petroleos de Venezuela S.A. ("PDVSA") was the Venezuelan state-owned and -controlled oil company. PSDVA operated through various subsidiaries and affiliates, including a procurement subsidiary in Houston.
Rafael Enrique Pinto-Franceschi, a Venezuelan national who resided in the United States, was employed as a sales representative for an unidentified U.S.-based supplier of industrial equipment.
Franz Herman Muller-Huber, a Venezuelan national who resided in the United States, was the President of the same industrial equipment supplier.
According the documents filed in this case, between 2009 and 2013, Pinto and Muller engaged in a conspiracy to bribe three PDVSA officials in exchange for obtaining business for the industrial equipment supply company. According to the indictment, when the company received a payment from PDVSA, Pinto would alert one of the PDVSA officials who would, in turn, create a fictitious invoice from a Panamanian shell company charging the industrial equipment supplier three percent of whatever payment the company had received from PDVSA. Muller then ensured that those invoices were paid to a Swiss bank account, from which Pinto, Muller, and the PDVSA officials took their appointed shares. In all, in excess of $3 million were paid into the Swiss bank account.
On February 21, 2019, the DOJ filed a five count indictment in the Southern District of Texas against Pinto and Muller alleging (1) conspiracy to violate the anti-bribery provisions of the FCPA, (2) conspiracy to commit wire fraud, (3-4) wire fraud, and (5) conspiracy to commit money laundering.
On July 10, 2019, the DOJ filed a two count Information in the case against Pinto alleging conspiracy to violate the anti-bribery provisions of the FCPA and conspiracy to commit wire fraud. On July 31, 2019, Pinto entered into a plea agreement with the DOJ.
On August 9, 2019, the DOJ filed a two count Information in the case against Muller alleging conspiracy to violate the anti-bribery provisions of the FCPA and conspiracy to commit wire fraud. On August 21, 2019, Muller entered into a plea agreement with the DOJ.
On August 20, 2019, the court orderer Pinto forfeit $985,416.60, and the next day, the court ordered Muller to forfeit $263,402.83.
On May 6, 2021, the court sentenced both Pinto and Muller. The court sentenced Pinto to 2 years in prison to be followed by 3 years of supervised release and ordered him to pay a fine of $12,500 plus a mandatory assessment of $200. The court sentenced Muller to 20 months in prison to be followed by 3 years of supervised release and ordered him to pay a fine of $65,600 plus a mandatory assessment of $200.
