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Enforcement Action Dataset

 

Initiation Date:    12/19/2018  Information

Prosecuting Agency:    U.S. 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 constructions 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 a 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.

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