Financial Crime World

Ecuadorian Insurance Scandal Exposed: Three Indicted for Bribery and Money Laundering

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Shocking Scheme Uncovered in Southern District of Florida

A bribery and money laundering scheme involving Ecuador’s state-owned insurance companies has been exposed, with three individuals facing serious charges. According to an indictment unsealed in the Southern District of Florida, Esteban Eduardo Merlo Hidalgo, Christian Patricio Pintado Garcia, and Luis Lenin Maldonado Matute allegedly conspired to pay bribes to officials of Ecuador’s state-owned insurance companies Seguros Sucre S.A. and Seguros Rocafuerte S.A.

Alleged Scheme Involves Millions in Bribes

  • The indictment alleges that the trio, working with an intermediary company, paid millions in bribes to secure business from the Ecuadorian insurers.
  • The co-conspirators also allegedly laundered funds related to the bribery scheme through bank accounts in Florida and used the proceeds for their personal benefit.

Charges and Potential Penalties

  • Merlo, Pintado, and Maldonado are each charged with:
    • One count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), which carries a maximum penalty of five years.
    • One substantive violation of the FCPA, which carries a maximum penalty of five years.
    • Conspiracy to commit money laundering, which carries a maximum penalty of 10 years.
    • Four counts of engaging in transactions involving criminally derived property, which carry a maximum penalty of 10 years for each count.

Maximum Total Penalty: 60 Years in Prison

If convicted, each defendant faces a maximum total penalty of 60 years in prison. The case is being investigated by the IRS-CI and the FBI, jointly under the auspices of the Global Illicit Financial Team.

Prosecution and Investigation

  • Trial Attorneys Alexander Kramer, Katherine Raut, Drew Bradylyons, and James Mandolfo of the Criminal Division’s Fraud Section are prosecuting the case.
  • Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division announced the charges, along with Special Agent in Charge Darrell J. Waldon of the IRS-Criminal Investigation and Special Agent in Charge John J. Bernardo of the FBI’s Miami Field Office.

Indictment is an Allegation

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 Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.