Financial Crimes Exposed in Mozambique: Former Finance Minister Convicted of $2 Billion Fraud Scheme
A Major Victory for Justice
In a significant achievement for justice, Manuel Chang, the former Finance Minister of Mozambique, has been convicted by a federal jury of conspiracy to commit wire fraud and conspiracy to commit money laundering. This verdict marks the end of a 4-week trial that revealed a shocking $2 billion fraud scheme that victimized investors in the United States and elsewhere.
The Massive Scam Uncovered
Chang faces up to 20 years in prison when sentenced for his role in the massive scam, which was uncovered through an investigation led by the US Department of Justice. The former minister was arrested in South Africa in December 2018 and extradited to the Eastern District of New York in July 2023.
Key Facts About the Scheme
- Chang and his co-conspirators bribed him $7 million in exchange for signing guarantees on behalf of the Republic of Mozambique to secure funding for loans for three maritime projects.
- The loan proceeds were intended to fund three maritime projects but were ultimately used to pay bribes and kickbacks to Chang and others.
- Between 2013 and 2015, over $2 billion was extended to companies owned and controlled by the Mozambican government.
Credit Suisse AG’s Admission of Wrongdoing
Credit Suisse AG and CSSEL, a subsidiary of the bank, admitted to defrauding U.S. and international investors in 2021 and paid approximately $475 million in penalties, fines, and disgorgement.
The Importance of Transparency and Accountability
The conviction of Chang marks a significant victory for justice and demonstrates the US Department of Justice’s commitment to combating foreign corruption and protecting investors worldwide. The case highlights the importance of transparency and accountability in financial dealings and serves as a warning to those who would engage in such schemes.
Acknowledging International Cooperation
The case is being handled by the Office’s Business & Securities Fraud Section, with Assistant U.S. Attorneys Hiral D. Mehta, Genny Ngai, and Jonathan Siegel leading the prosecution. The Justice Department appreciates the assistance of authorities in the United Kingdom, Switzerland, Spain, Portugal, and South Africa in this investigation.
The conviction of Manuel Chang is a significant step towards bringing justice to those who have been victimized by his actions. It serves as a reminder of the importance of transparency and accountability in financial dealings and demonstrates the US Department of Justice’s commitment to combating foreign corruption and protecting investors worldwide.