Two
employees of an international engineering consulting firm were charged in a
superseding indictment filed today for their alleged participation in a scheme
to launder bribe payments to foreign government officials for the benefit of a
Columbus, Ohio-based subsidiary of Rolls-Royce plc, to secure a contract to
supply equipment and services to power a gas pipeline from Kazakhstan to China.
Acting
Assistant Attorney General John P. Cronan of the Justice Department’s Criminal
Division, U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio,
Acting Inspector in Charge Nicole Davis of the U.S. Postal Inspection Service’s
Criminal Investigations Group, Assistant Director Christopher Hacker of the
FBI’s Criminal Investigative Division and Special Agent in Charge Matthew J.
DeSarno of the FBI’s Washington Field Office Criminal Division made the
announcement.
Azat
Martirossian, 62, a citizen of Armenia, and Vitaly Leshkov, 50, a citizen of
Russia, were charged by a superseding indictment filed in the Southern District
of Ohio with one count of conspiracy to launder money and 10 counts of money
laundering. Petros Contoguris, 70, a
citizen of Greece, was also charged on these counts, as well as one count of
conspiracy to violate the Foreign Corrupt Practices Act (FCPA), and seven
counts of violating the FCPA. Contoguris
previously had been charged on all of these counts in an indictment that was
filed on Oct. 12, 2017 and unsealed on Nov. 7, 2017. Martirossian, Leshkov, and Contoguris are
believed to be residing outside the United States.
“The
charges announced today against Azat Martirossian and Vitaly Leshkov further
demonstrate the Criminal Division’s unwavering resolve to prosecute those who
facilitate corruption and launder illicit proceeds,” said Acting Assistant
Attorney General Cronan. “Thanks to the
coordinated efforts by our prosecutors and agents—working closely with their
counterparts throughout the world—these defendants will face prosecution for
their allegedly corrupt schemes.”
“The
charges filed today reflect the continued determination of the United States to
prosecute those who engage in foreign corrupt business practices,” said U.S.
Attorney Glassman. “International actors should think twice before executing
bribery schemes because the United States can and will discover and prosecute
such schemes and their perpetrators.”
“The
U.S. Postal Inspection Service has a long history of successfully investigating
complex fraud and corruption cases,” said Acting Inspector in Charge
Davis. “Corruption and bribery schemes
such as this involving international corporations and conspirators are not
victimless crimes. This type of conduct
can damage competitive domestic and international markets, and cause
immeasurable economic losses both here in the United States and around the
world. Anyone who engages in deceptive
practices like this should know they will not go undetected and will be held
accountable, regardless of where they are.
The collaborative investigative work on this case conducted by Postal
Inspectors and our domestic and international law enforcement partners illustrates
our efforts to protect the United States and the international marketplace.”
“The
allegations outlined today exemplify how a small group of individuals, who
knowingly engage in illegal payments in an attempt to advance businesses
dealings, create an uneven global marketplace,” said Acting Assistant Director
Hacker. “The FBI with our partners
continues to work these important cases in order to remove the notion that
bribery, through backroom deals, is an acceptable way of doing business. This
investigation demonstrates the importance of international cooperation amongst
law enforcement in combatting fraud and money laundering on a global basis.”
“Today’s
charges serve as a reminder of the important role the FBI plays in rooting out
international corruption,” said FBI Special Agent in Charge DeSarno. “No one is above the law, so let today’s
announcement be a warning to those who may try to perpetrate a similar scheme
that the FBI will work with global partners in its mission to detect and
prevent corrupt business practices, and we will continue to hold those who
attempt to take advantage of international markets accountable.”
According
to the superseding indictment, Contoguris, the founder and chief executive
officer of Gravitas & CIE. International Ltd. (Gravitas), former
Rolls-Royce employees and executives, and others, allegedly conspired to pay
bribes to foreign officials in exchange for directing business to Rolls-Royce
Energy Systems Inc. (RRESI). RRESI was a
U.S.-based subsidiary of Rolls-Royce plc, the United Kingdom-based global manufacturer
and distributor of power systems for the aerospace, defense, marine and energy
sectors.
The
superseding indictment alleges that Contoguris, working with employees of an
international engineering consulting firm (Technical Advisor), including
Martirossian and Leshkov, devised and executed a scheme with Rolls-Royce
executives and employees, whereby Rolls-Royce would pay kickbacks to the
Technical Advisor employees and bribes to at least one foreign official in
Kazakhstan, and disguise these payments as commissions to Contoguris’s company,
Gravitas, in exchange for helping Rolls-Royce win contracts with Asia Gas
Pipeline LLP (AGP).
According
to the superseding indictment, AGP was created to build and connect a gas
pipeline between Central Asia and China, and the Technical Advisor purported to
provide independent engineering consulting advice and other services to
AGP. The superseding indictment further
alleges that after AGP awarded Rolls-Royce a contract in November 2009, worth
approximately $145 million, Rolls-Royce made commission payments to Gravitas,
and Contoguris then passed a portion of those commission payments onto the
Technical Advisor employees, including Leshkov and Martirossian, knowing that a
portion of that money would be shared with a foreign official consistent with
their corrupt agreement.
The
charges announced today follow the Jan. 17, 2017 announcement of a deferred
prosecution agreement (DPA) with Rolls-Royce plc and a more than $800 million
total penalty as part of a global resolution to investigations by the
Department of Justice, U.K., and Brazilian authorities related to the corrupt
conduct. The charges also follow upon
the Nov. 7, 2017 announcement, concerning Rolls-Royce former executives and
employees James Finley, Keith Barnett and Louis Zuurhout, and Technical Advisor
employee Andreas Kohler, each of whom have entered guilty pleas in connection
with their respective roles in the bribery scheme. The DPA acknowledged Rolls-Royce’s
cooperation in this case, including with the Department’s investigation into
individuals, and significant remedial measures.
An
indictment is merely an allegation and all defendants are presumed innocent
until proven guilty beyond a reasonable doubt in a court of law.
The
U.S. Postal Inspection Service and the FBI’s International Corruption Squad in
Washington, D.C., investigated the case.
Trial Attorneys Kevin R. Gingras and Vanessa Snyder of the Criminal
Division’s Fraud Section and Assistant U.S. Attorneys J. Michael Marous and
Jessica Kim of the Southern District of Ohio are prosecuting the case.
The
Criminal Division’s Office of International Affairs provided significant
assistance in this matter. The United
Kingdom’s Serious Fraud Office provided assistance in this matter, as did law
enforcement colleagues in Brazil, which both coordinated with the Department to
reach simultaneous resolutions with Rolls-Royce. The Department also thanks its law
enforcement colleagues in Austria, the Bahamas, Germany, the Netherlands,
Singapore, Switzerland and Turkey.
The
Criminal Division’s Fraud Section is responsible for investigating and
prosecuting all FCPA matters. Additional
information about the Justice Department’s FCPA enforcement efforts can be
found at www.justice.gov/criminal/fraud/fcpa.