Oil Trader Convicted in Bribery Scheme Involving Brazil’s Petrobras
A Connecticut oil and gas trader, Glenn Oztemel, has been found guilty of a nearly eight-year scheme to bribe officials at Brazil’s state-owned oil company Petrobras in order to secure business for two Connecticut trading companies. Oztemel, along with another defendant, Eduardo Innecco, were accused of bribing officials to help Arcadia Fuels and Freepoint Commodities win contracts and gain access to confidential information about Petrobras’ fuel oil business.
The scheme, which lasted from 2010 to 2018, involved the payment of more than $1 million in bribes to Petrobras officials in Brazil and a Petrobras fuel trader in Houston. Coded language such as “breakfast” and “freight deviation” was allegedly used to refer to the bribes.
Oztemel’s lawyer expressed disappointment in the verdict, stating that his client had a clean record in the oil industry for 40 years and would continue to fight to clear his name. Innecco is currently awaiting extradition from France to face U.S. charges, while Oztemel’s brother Gary pleaded guilty to a related money laundering charge in June.
Freepoint, based in Stamford, Connecticut, entered into a deferred prosecution agreement last December and agreed to pay over $98 million to resolve bribery charges. Brazilian authorities had previously investigated Freepoint employees as part of Operation Car Wash, a long-running investigation into suspected bribery at Petrobras.
Overall, the conviction of Oztemel and the related charges against other individuals and companies highlight the serious consequences of engaging in corrupt practices, particularly in the oil and gas industry. Investors and businesses should take note of these cases and ensure that they comply with all legal and ethical standards to avoid similar legal troubles and reputational damage.