Financial Crime World

Headline: Micronesia Government Official Charged with Money Laundering in Alleged Bribery Scheme with US Executive

WASHINGTON D.C. - A Micronesian government official has been charged with money laundering in a bribery scheme involving engineering and project management contracts from the Federated States of Micronesia (FSM) Government.

  • Master Halbert, a 44-year-old citizen of Micronesia, was charged with one count of conspiracy to commit money laundering.
  • Halbert, who was a government official in the FSM Department of Transportation, Communications and Infrastructure and administered the country’s aviation programs, allegedly accepted bribes totaling nearly $8 million.

Criminal Complaint

  • The bribes were taken from a Hawaiian-based engineering and consulting company, owned by Frank James Lyon.
  • Halbert and Lyon agreed to transport these bribes from the United States to FSM in exchange for assistance in securing and retaining contracts.

Arrest and Charges

  • Halbert was arrested yesterday in Honolulu, Hawaii, and made his initial appearance before U.S. Magistrate Judge Richard L. Puglisi.
  • He is scheduled for a pretrial detention hearing on Feb. 13 and a preliminary hearing on Feb. 22.
  • In a related matter, Lyon, 53, of Honolulu, Hawaii, pleaded guilty on January 22 to a one-count information filed in the District of Hawaii.
  • He was charged with conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and to commit federal program fraud.
  • Lyon is scheduled to be sentenced on May 13.

Department of Justice Announcement

  • The charges against Halbert and Lyon are “alleged offenses” and both remain innocent until proven guilty in a court of law.
  • The trial is being prosecuted by Trial Attorney Katherine Raut of the Criminal Division’s Fraud Section, with assistance from the Department’s Office of International Affairs.

Key Personnel

  • Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division
  • Special Agent in Charge Sean Kaul of the FBI’s Honolulu Field Office

Charges and Trials

  • Halbert and Lyon are being tried for their alleged involvement in money laundering and bribery.
  • The charges against them include conspiracy to commit money laundering, conspiracy to violate the FCPA, and federal program fraud.