A Brazilian man, who was previously the chief executive of Braskem (Braskem), a publicly traded Brazilian petrochemical firm, was sentenced today in New York’s Eastern District to 20 a scheme to divert hundreds million dollars from Braskem into secret slush funds and pay bribes for government officials, parties and other people in Brazil.
from Brazil pleaded guilty to one count each of conspiracy and violating the anti-bribery provisions under the Foreign Corrupt Practices Act. He also pleaded guilty to one count of conspiracy and violating the books and records provision in the FCPA. According to court documents, approximately 2002 to 2014, Grubisich served as CEO and member of the board. He also worked in various capacities for Odebrecht S.A. (Odebrecht), in an attempt to bribe Brazilian officials. Grubisich, along with his accomplices, diverted around $250 millions from Braskem to a secret slush funds. Grubisich, as well as others, generated the money through fraudulent contracts and offshore shell corporations that were secretly controlled and managed by Braskem. Grubisich was sentenced to $2.2 million in prison and a $1,000,000 fine.
In December 2016, Braskem, Odebrecht pleaded guilty to conspiring to violate the FCPA’s anti-bribery provisions. Braskem also settled civil proceedings with Securities and Exchange Commission (SEC), on the same day.
Assistant Attorney General Kenneth A. Polite Jr., of the Justice Department’s Criminal Division, Acting U.S. attorney Jacquelyn M. Kasulis in the Eastern District, New York, and Michael J. Driscoll, Assistant Director-in-Charge, made the announcement.
The case was investigated by the FBI’s International Corruption Squad in New York. The Office of International Affairs, Criminal Division, provided significant assistance. The department expresses gratitude for the assistance provided to it by the SEC’s Division of Enforcement and Ministerio Federal as well as the Departamento de Policia Federal (Brazil), the Office of the Attorney General, the Federal Office of Justice and the Federal Office of Justice, Switzerland, and the governments of Panama, Andorra, the United Kingdom, Portugal, and Panama.
Acting Chief Lorinda Leryea, and Leila Babaeva, Trial Attorney at the Criminal Division’s Fraud Section. The case was prosecuted by Alixandra and Julia Nestor, both of the Eastern District in New York. The case is being handled by Laura Mantell, Assistant U.S. attorney in the Asset Recovery Section.